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Retirement isn’t the answer

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By Michael O’Connor, theislandinvestor.com

Financial Independence/Retire Early (FIRE), is an incredibly popular movement in Ireland.

The idea is that we should seek financial independence by maximising our savings and living well below our means.

These savings are then invested in low cost diversified index funds until you have accumulated a sufficient pool of money that allows you to retire early. I may be brushing over some of the details - but you get the gist.

I’m all for financial independence, it’s a huge part of what I do. It’s the second half that I’m not really on board with yet.

Early retirement

Every person I know, be it my parents, my friend's parents or my extended family members have either struggled with retirement or given up on it completely and gone back to work. We are seeing a growing trend of people ‘un-retiring’.

This trend doesn’t surprise me.

We seem to underestimate the loss of purpose that comes with retirement. A huge part of your life is suddenly ripped out and you’re just left with an empty cavity while those who once depended on you, move on seamlessly.

Mentally that can’t be easy.

You’ve undoubtedly lost a sense of self.

“I won’t be worrying about all that, I’ll be too busy holidaying and playing golf”.

Sure, there is the initial honeymoon period but think past that. Spending your days filling time just to fill time is sure to get old pretty quickly.

The general response to this one is; “Oh but I will have the freedom to do whatever I want”.

But why are you waiting until retirement to pursue ‘whatever you want’?

Don’t get me wrong, I’m not suggesting people should work until they drop (literally), but trading your 40 healthiest years to a corporation in exchange for 20 years of freedom when your body is breakdown isn’t ideal.

Surely there is a balance

Why can’t we prioritise our hobbies in the best 40 years while working a bit less instead of working non-stop and then coming to an abrupt halt.

Why can’t we operate on a glide path system into retirement where you can work less, but still offer your skills and earn an income into old age.

As Michael O’Leary said "It’s better to wear out than rust out".

Granted this is a pretty idealistic view but there is surely another options besides making retirement your ultimate financial goal.

This whole rushing to the finish line idea just seems flawed to me.

Living on the breadline for years just so you ‘put your feet up’ a year or two earlier isn’t a financial plan.

You’re simply forgoing comfort now for perceived comfort in the future.

Make sure the sacrifices you are making are worth the trade-off.

Like most things in life, you need to find the balance.

*Come back to me on this one when I’m 55 and my future kids have squeezed me for every bit of energy and money I have. I’ll likely have a completely different take.

Join the one thousand plus subscribers learning to invest by scanning the QR code or go to www.theislandinvestor.com.

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Eight month wait for a driving test in Killarney

A Killarney councillor is calling for action in an effort to reduce the driving test wait list in Killarney The current wait list for a test in Killarney sits at […]

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A Killarney councillor is calling for action in an effort to reduce the driving test wait list in Killarney

The current wait list for a test in Killarney sits at eight months.

Cllr John O’Donoghue raised the issue at Monday’s full meeting of Kerry County Council.

He proposed that driving instructors should be employed to carry out the final test to reduce the current backlog.

At Monday’s meeting he asked that hat Kerry County Council would write to the Minister for Transport to ask him to consider giving driving instructors temporary powers to issue a temporary Driving Licence/Certificate of Competence to those on the waiting list for tests.

“The wait is currently far too long and the system is in danger of becoming completely overwhelmed,” he said.

“The huge waiting list for young drivers is well documented at this stage. In a case I am familiar with, a young person passed their theory test in January 2022 and he immediately applied for his mandatory 12 driving lessons. When these were completed, he applied for his driving test on the 2nd of December 2022. Some weeks ago, he still had not received an application to apply for his driving test. This wait is placing him and his family under considerable extra cost and stress which is completely unacceptable.”

In the course of his research into the matter Cllr O’Donoghue discovered that the next available date for a driving test in Killarney is May 25, 2024, while Tralee is June 3 2024.

“Bear in mind, these are only the dates on which you receive an invitation to book your test, the test itself will then be an estimated three to five weeks later.

“This is an appalling situation and one which needs to be rectified as a matter of urgency. I am proposing that driving instructors, which presumably are fully trained up on the rules of the road, be granted temporary powers to be allowed to issue temporary driving licences to young people. When the waiting list time has been reduced, I would still propose that these people sit the test as usual, but the current pressure needs to be alleviated as soon as possible. There is precedent as I believe that in the 1970s, a cohort in this country were issued driving licences without having sat a test as the wait time for the test was too long.”

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Ballymac charity vintage run on October 1

The Ballymac Vintage Club is hosting a classic car, tractor and Honda 50 run on October 1. The run will leave from and return to the Halfway Bar, Ballymac. Registration […]

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The Ballymac Vintage Club is hosting a classic car, tractor and Honda 50 run on October 1.

The run will leave from and return to the Halfway Bar, Ballymac.

Registration begins at 9:30am and sets off at 11am.

“There will be two separate routes with one for tractors and the other for cars and motorbikes. Proceeds on the day are in aid of Castleisland Day Care Centre and we’ll have plenty of spot prizes to giveaway too in the morning,” said the club’s PRO Kieran Glover.

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