Is Retirement with No Money Possible?
Show Sponsor: TradeKing Advisors
This week’s podcast is with the wonderful Emily Guy-Birken, author of The 5 Years Before You Retire and Choose Your Retirement. It’ s all about giving hope to the unsure and under-saved. In this interview, we’ll focus on options for people who feel that the “traditional” easy-does-it retirement is not within their reach. 55% of American’s don’t ready read for retirement. That’s mostly because people feel they have no money for retirement. It’s time that someone has this conversation. Why not us? The good news is that Emily’s book, Choose Your Retirement, is so jam-packed with information and resources that you will come away hopeful that no matter how old you are or how little you have saved, there is hope that retirement is not only possible but can be enjoyable.
- Emily’s money story- She’s always been a “money nerd.” She enjoyed saving money and putting it in her piggy bank even from a young age. At the age of 12, she decided to save up for a car for when she was 16 (which she did get for $3,200!) Emily says she’d always been good with money and believes she might’ve inherited good money habits from her great-grandmother.
- Emily admits that’s she’s inherently wired to think about the future and it has inspired her last 2 books- The 5 Years Before You Retire and Choose Your Retirement.
- The 5 Years Before You Retire, guides families through the logistical and psychological aspects of preparing for retirement. Most books focus solely on finances, whereas Emily’s book goes deeper into the emotional and logistical impact of retirement. This book aims to provide a balanced and global view of retirement bringing up points that are often ignored or glossed over by traditional financial planning resources.
- Choose Your Retirement (I read this one) is more for people who are not sure what they will do for retirement. This book is aimed to be useful for people in all different stages of their career from the 21 year-old who just got their first job to the 40-something in the thick of raising kids and beyond. If you are 70 and unsure of what to do, no worries, this book is even for you!
- Choose Your Retirement challenges the traditionally narrow view of retirement. Most people envision something like this: you work for 30 years, have your retirement party then start your “real life.” Here you play golf all day and spend time with your grandkids regularly. Emily believes that very few people enjoy this type of retirement nowadays. She wants to paint a picture of a something that is flexible, fluid and adaptable to an individual’s life circumstances, desired lifestyle and bank account.
- The goal here is to empower people to look at what is most valuable in their lives. What are the things that make them most happy and most fulfilled and find a way to get to those things no matter where their finances are. Emily believes that you can live a values-driven life even if you don’t have a lot of money. You can do what you desire in life, you just have to know the trade off.
- How this is playing out practically in Emily’s life:
- Emily doesn’t foresee retiring from her job, she works full time from home as a personal finance writer. Her husband is a engineer and envisions himself retiring from work, however.
- To help with her husband’s retirement goals, they have separate cash funds for various expenses. For example, they have a $350/month car fund (targeted savings) they pay to themselves in advance for a car so they don’t go into debt and can continue contributing to their retirement accounts and their kids’ college funds. This helps them avoid debt and have cash for emergencies.
Favorite Principle of Increase:
Do something each day that your future self would be happy you did.
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