Financial Independence After 50: A New Three-Legged Stool
I talk with many people weekly and monthly who have varying relationships with money. The common denominator: they all feel they will never reach any level of FI.
Care to guess why?
I’ll give a few hints:
- It isn’t an ability to save.
- It isn’t their debt.
- It isn’t their spending habits.
- It isn’t the size of their pay check.
The problem is our society and media! All give the message that we are too old and it is too late for us to reach financial independence. As of this writing, three hours ago (1C, Friday, January 31, 2020), a 41 year old woman said she felt too old for financial success even though she feels the best and most capable in her life.
I got frustrated with that mindset in my mid-40s and took action to learn as much as possible to reach my definition of financial independence. I studied the existing 3-legged stool, discovered FI/RE (financial independence/retire early), and made changes in my career. The new goal was to help others over 50 make FI/RE a reality–and not just our twenty- and thirty-something adult children.
When I first introduced FIReD—Financial Independence ReDefined a year ago, I set a few mega goals for myself:
- Become a speaker at the 2019 FinCon conference (accomplished!)
- Win the 2019 Plutus Awards (I was a finalist under the category of Best Baby Boomer/GenX blog!)
- Accomplish several personal finance goals (Read The Overcoming Underearning Challenge: Revisited).
The changes over the last year have led to additional and unexpected opportunities, and resulted in an additional side gig. That’s what FIReD is about. Financial independence after 50 is about abandoning age-ist thinking and limiting beliefs and what everyone else thinks life after 50 should be. It means redefining how we surge forth with our own intents, and to hell with everyone else.
It’s the NEW three-legged stool:
Business growth:
- Expand second act service offerings, side gig growth, maximize career growth.
- Utilize resources to maximize learning, our network, and our connections.
- Seek out and/or create opportunities that enhance our skills, knowledge, and expertise.
Personal growth:
- Establish stronger personal boundaries—especially with the loving vultures in our lives. (We all have them!)
- Create more personal time—with and without friends and family.
- Introduce new practices for physical, mental, and emotional health.
Financial growth:
- Learn more about money—and not being blocked by or afraid of it.
- Attending webinars and events on money. (See What Does Financial Freedom Mean to You?)
- Discover how money influences your life—for better or for worse—learn from it and improve.
Through my own internal and external conversations, I’ve come away with a few ideas that I will be implementing over the next few months: a meetup group, another blog, a book—or both, and a webinar series—all on the topic of FIReD. It’s a lot. It’s exciting. And I have the power.
Most importantly: You do too!
Let’s raise little hell!
p.s. how does this new three-legged stool fit with your future plans? Anything you would like to add?
Kristen
There are many examples of people who start at 40 or even later in terms of financial issues. We didn’t get serious about FIRE until 40 and still hit our LeanFIRE number within 7 years. For my Forbes column, I covered a 50-something career changer who pivoted to launch a business when she realized she was behind on retirement savings: https://www.forbes.com/sites/carolinecenizalevine/2017/07/15/from-selling-to-buying-karen-rittenhouse-secures-retirement-with-a-late-stage-career-change/
International Living, Encore, Next Avenue are other places to find interesting later in life success stories.
Thanks for the comment Caroline! If people can get out of 6-figure debt, they certainly can acquire 6-figure retirement numbers too. It’s a bit of an adventure that requires dedication and determination. I’m enjoying hearing more stories of those who have hit their number. As those over 40 discover they can too, we’ll be hearing more success stories!
I’ll check out your link–and your column. Thanks for sharing 😀
Hey Kathy – I’m just reading your comment. Where did the concept of “too late” come from anyway? I was recently speaking to my 13 yo neighbor and he believes he’s too old to pursue oncology as a career choice! Where does this come from?? It’s a limiting belief that was somehow implanted in most (all??) of us at a vulnerable time and now we must overcome it. So, YES, it is never too late for ANYTHING and we must pursue the education and action to push past that limiting belief.
Thanks Kristen
I came on line looking for inspiration and motivation, and i got that in SPADES here.
Thankyou.
Hi Shaun! Thank you for reading and I’m so pleased it gave you what you were looking for!
Retirement is almost a mythical opportunity and finances make a huge part of it. To make it more of a reality, we need to be more actively involved.
Managing Midlife will explore more of that in the years to come!