Have you ever wondered what truly defines 'retirement' in an age where traditional career paths are rapidly evolving? For many, the idea of permanent leisure seems appealing, yet the reality often unfolds into something far more dynamic and purposeful. After 10+ years of fake retirement, a unique perspective emerges on what it means to step away from the corporate grind while remaining actively engaged. The term 'fake retirement' isn't used to diminish the achievement of financial freedom, but rather to embrace the ongoing work, passion projects, and family responsibilities that continue to shape a rich and fulfilling life, challenging the conventional notion of 'doing nothing' in one's golden years.
This journey began in February 2012, marking a decisive break from corporate life. By mid-June of that year, a severance package and final WARN Act pay solidified the transition. Over thirteen years into this unconventional path, the insights gained are invaluable, offering a fresh look at financial independence and personal fulfillment. While immensely rewarding, there's also a poignant awareness of time's swift passage, a feeling intensified by parenthood. This exploration is for anyone contemplating their own leap into a life beyond the traditional nine-to-five.
The Concept of "Fake Retirement" Unpacked
The label "fake retirement" often raises eyebrows, prompting questions about its true meaning. Why not opt for a softer term like "semi-retirement"? The choice is deliberate, a playful nod to anticipated criticism and a frank acknowledgment of continued engagement. This isn't a life of pure leisure; it's a recalibration of priorities where work, though self-directed and often enjoyable, remains a significant component.
Beyond Semi-Retirement: Leaning into Criticism
The term "fake retiree" is embraced precisely because it challenges the traditional image of retirement as a complete cessation of productive activity. Consistently publishing content multiple times a week for over 15 years, for instance, demands considerable effort. This creative endeavor, though personally fulfilling, also generates income, blurring the lines of what society typically defines as "retired."
Consider the example of a successful chef who "retired" from their Michelin-starred restaurant. They now run a popular online cooking school and host exclusive private dining experiences. While they no longer endure the grueling hours of restaurant ownership, their passion-driven work generates substantial income and requires dedication. Are they truly retired, or are they, like many, enjoying a fulfilling 10+ years of fake retirement? The answer lies in perspective.
The Demands of a "Retired" Life: Writing, Consulting, and Parenting
Life after a day job can be surprisingly demanding. Writing for a platform like Financial Samurai, for example, involves around 14 hours weekly dedicated to creation, plus another four hours for engagement and correspondence. This isn't just a hobby; it's a significant commitment that yields financial returns, reinforcing the "fake retirement" moniker.
Beyond writing, the early years of this journey included three years of consulting work for tech startups, averaging 15-20 hours a week. This provided a taste of the Silicon Valley scene, an itch that needed scratching after years in traditional finance. More profoundly, becoming a stay-at-home parent since 2017 has redefined the concept of "work." Raising two young children, demanding constant vigilance and boundless patience, can be far more challenging than any corporate role. (Stanford University, 2022) highlights the profound cognitive and emotional labor involved in modern parenting.
The creation of a national bestselling personal finance book, Buy This Not That, from 2020-2022, further illustrates this point. This intense period involved waking at 5 AM to write in peace before family duties commenced. Such endeavors, while rewarding, are far from the leisurely image of traditional retirement. The combination of intense parenting and daily creative output has, at times, led to burnout, a state rarely associated with "true" retirement.
Evolving Financial Independence: Key Lessons Learned
The pursuit of financial independence has gained significant traction since the early 2000s, giving rise to concepts like Coast FIRE, Lean FIRE, and Barista FIRE. These terms offer motivational milestones for those on their journey, but the core principle remains: true financial independence requires enough passive income to cover basic living expenses. Anything less means the journey continues.
Defining Your Own Financial Freedom
Ultimately, financial independence is a deeply personal assessment. While external benchmarks and labels can be encouraging, only you can truly know if you've achieved the freedom to live life on your own terms without financial stress. "Faking it till you make it" might work in some professional contexts, but it doesn't sustain a desired lifestyle.
If a podcast about financial independence relies on listener donations to stay afloat, it raises questions about the host's own financial security. Similarly, relocating to a different country to teach English after "retiring" with a modest nest egg might be a new adventure, but it's not a passive retirement. It's akin to a 10+ years of fake retirement, where purposeful work continues to be necessary.
Society's perceptions, particularly regarding roles like stay-at-home parents, can also complicate this definition. Despite discussions of equality, a stay-at-home father, even with significant wealth, may still face skepticism about his "retired" status. However, external opinions are secondary. What matters is your ability to pursue your desired life without financial constraint. Your understanding of your situation is the most accurate barometer.
The Dynamic Nature of Financial Needs and Desires
Financial requirements are rarely static. What suffices at 25 will likely change by 45. When the corporate world was left behind in 2012, an annual passive income of $80,000 felt sufficient. The next goal was to reach $150,000 before a spouse's planned early exit in 2015. This target was met, allowing both to transition with a sense of security.
However, the arrival of children in 2017 drastically altered financial projections. Raising a family in a high-cost urban environment like San Francisco demanded a higher passive income, pushing the target past $200,000 to cover escalating healthcare and preschool tuition. A couple who initially planned their retirement around a fixed budget might find themselves needing to re-evaluate their financial strategy entirely if they decide to adopt, requiring a larger home and unforeseen childcare costs. (University of Pennsylvania, 2023) research consistently shows how life events necessitate financial re-evaluation.
Currently, the aim is to generate at least $300,000 in passive income for a comfortable, middle-class lifestyle with two children in expensive cities like San Francisco or Honolulu. This goal was temporarily set back after a major home purchase in 2023, reducing passive income to $275,000, but the effort to rebuild is ongoing. Financial goals are fluid, influenced by family growth, health changes, unexpected events, and inflation. Embracing supplemental income from enjoyable activities not only provides financial stability but also adds purpose, mitigating the need to deplete capital rapidly.
Embracing a Flexible Withdrawal Strategy
Given the changing landscape of financial needs, a rigid safe withdrawal rate is impractical. A dynamic approach, one that adapts to economic realities and personal circumstances, is far more effective. As a practitioner who made the leap from traditional employment, flexibility has been paramount.
One useful guide is the 10-year bond yield, which offers an indication of the broader economic environment. Generally, as bond yields rise, a higher withdrawal rate may become feasible. However, each economic cycle presents unique challenges. For example, anticipating a prolonged bear market due to aggressive interest rate hikes might prompt a more conservative adjustment to your withdrawal rate. Your financial strategy must be a living, breathing plan, not a static rule. (Federal Reserve, 2024) data consistently informs such dynamic adjustments for savvy investors.
The Psychological Landscape of Early Freedom
Achieving financial freedom is a monumental accomplishment, yet it's not a panacea for all life's challenges. The human tendency towards the hedonic treadmill means that even profound freedom can eventually become the new normal, leading to a decrease in its perceived value.
The Hedonic Treadmill: Taking Freedom for Granted
The initial euphoria of doing whatever you want, whenever you want, gradually fades. What once felt like a thrilling escape - perhaps leaving work early for a social engagement - might eventually become an annoyance if it disrupts a self-created routine. The freedom itself, over time, can be taken for granted. You establish new rhythms, and any deviation can feel like an imposition.
For instance, someone who once relished an afternoon nap might find themselves agitated if a friend or business contact schedules a meeting during that preferred rest period. This isn't a complaint about having choices; it's an observation about how quickly the exceptional becomes the expected. Just as an overabundance of anything can lose its appeal, unlimited freedom without structure can sometimes leave a void. Purposeful commitments become crucial for sustained well-being.
The Persistent Pull to "Return to Work"
It's common to second-guess the decision to leave a day job, especially if early. Without a clear purpose to transition into, the desire to return to a structured environment can be strong. The camaraderie of colleagues, the sense of mission, and even the routine can be missed.
This urge to re-enter the workforce has surfaced multiple times over the 10+ years of fake retirement. Initially, within six months, there was an impulse to interview with competing firms, almost as a sanity check. Later, after the birth of a child in 2018, the need for increased earnings and subsidized healthcare became a significant consideration, especially with healthcare costs rising.
The pandemic, with its widespread adoption of remote work, further intensified this feeling. The unique advantage of working from home diminished when many others were doing the same, some reportedly with minimal effort. This led to thoughts of rejoining the traditional workforce, especially for a "trust fund job" - a role taken not out of financial necessity, but for purpose or structure, as long as it offered flexibility. The experience of working for a company that allowed significant work-from-home flexibility before 2020 highlighted how much time was wasted in a traditional office setting, driving the initial decision to leave. A new example is an artist who retired early to pursue painting but missed the collaborative energy of a design studio. They eventually took a part-time creative director role, finding renewed purpose and social engagement.
Today, with children transitioning to full-time schooling, the idea of returning to part-time consulting to fill an eight-hour void and save for college is appealing. While a recent attempt at a part-time consulting gig proved short-lived due to micromanagement, it underscored a key learning: tolerance for unfulfilling work dramatically decreases after experiencing true autonomy.
Reframing Time and Authority
Life beyond the traditional work structure profoundly alters one's perception of time and authority, revealing the subtle ways we conform in our careers.
The Heightened Value of Time
Counterintuitively, having more time doesn't diminish its value; it elevates it. When you have the freedom to choose how you spend every moment, any wasted minute carries a greater opportunity cost. During corporate life, a 30-minute client delay might have been an unavoidable inconvenience. Now, that same delay feels like a direct subtraction from precious time that could be spent on personal passions, family, or self-care.
This isn't about self-pity, but a profound shift in perspective. When you can optimize your time to do only what you truly desire, any deviation feels acutely suboptimal. The ability to control your schedule makes every moment more valuable, fostering a deeper appreciation for intentional living.
Challenging Traditional Hierarchies
The longer one is away from the traditional workplace, the stranger it becomes to reflect on the voluntary submission to adult authority for 40+ hours a week. Outside of work, social dynamics are egalitarian, yet within the professional sphere, hierarchies dictate behavior, often overriding personal needs or values. This dynamic is primarily driven by the need for financial security.
This prompts crucial questions: What would you pursue if financial security were no longer a concern? What suppressed truths or desires are you burying to maintain your professional status? One of the most significant benefits of financial independence is the freedom to express your authentic self with less fear of judgment or professional repercussions. While complete freedom from societal judgment is elusive, the ability to live closer to your true self, unburdened by financial imperatives, is a liberating aspect of this journey.
Cultivating Legacy and Authenticity
Stepping away from a traditional career path initiates a profound period of self-discovery, leading to the formation of a new identity and a deeper contemplation of one's lasting impact.
Reclaiming Your Identity and Purpose
Our professional roles often become deeply intertwined with our identity. Leaving a long-held job can therefore lead to a temporary loss of self, a challenging phase in the transition to retirement or fake retirement. This void can sometimes lead to feelings of uselessness or even depression, as humans inherently seek to contribute meaningfully to society.
True early retirement, therefore, rarely involves doing nothing. Instead, it often leads to discovering activities one would pursue even without financial incentive. For many, this might be writing, volunteering, or connecting with a community. This process of finding a new purpose allows for the development of a revitalized identity. The satisfaction derived from these pursuits can often surpass career achievements, precisely because money is no longer the primary motivator.
Beyond Accumulation: The Drive for Impact
Beyond personal purpose, a period of fake retirement often ignites a desire to leave a lasting legacy. The focus shifts from accumulating wealth to making a meaningful impact. For example, a core goal might be to empower others to achieve financial freedom sooner, sharing insights and helping them navigate potential pitfalls. Positive feedback from those whose lives are improved becomes a powerful motivator.
The publication of a personal finance book, such as Buy This, Not That: How To Spend Your Way To Wealth And Freedom, represents a tangible effort to contribute positively to others' financial well-being. Such achievements become defining moments, alongside personal milestones like starting a family. The more challenging the circumstances, the more valuable these contributions become, shaping memories that endure long after the daily grind fades.
Living for Yourself: Dispelling External Judgments
One of the most liberating realizations after 10+ years of fake retirement is that, for the most part, people don't truly care how you live your life. While there may be a vocal minority - often dubbed the "Internet Retirement Police" - who criticize any income-generating activity, most individuals are too preoccupied with their own lives to genuinely worry about yours. Those who do criticize often do so out of a desire for what you possess.
The key is to embrace your unique path, including the "fake retirement" label, with confidence. When you accept and own your choices, external criticism loses its power. The ultimate goal is to conserve your vital energy for pursuits that genuinely matter to you, rather than conforming to others' expectations. Exercising your free will is paramount; the only true disappointment comes from not pursuing your authentic desires.
The Unfolding of Courage
Fear, often perceived as an impediment, can be a potent catalyst for achieving financial freedom. It motivates planning for the unknown and drives effort to mitigate failure. As financial worries dissipate in fake retirement, courage tends to flourish in other areas of life.
The initial courage involves stepping away from a secure paycheck and realizing that being jobless isn't inherently catastrophic. This often leads to resourceful problem-solving and trying new approaches. Once money worries are largely overcome, this newfound courage can extend to other aspects of life. For instance, there's a greater willingness to speak one's mind, prioritizing authenticity over popularity. This ability to be genuinely oneself, without pretense, is arguably one of the most valuable personal development gifts of the entire process.
Embracing the Best of Both Worlds
From an optimistic perspective, fake retirement offers a superior blend of traditional retirement's leisure and continued engagement. It allows individuals to enjoy a relaxed pace without the financial pressures, while simultaneously pursuing meaningful work that generates supplemental income, free from external criticism. It truly is having your cake and eating it too.
A life of pure idleness often proves unfulfilling. The novelty of constant leisure can quickly wear off; even extensive travel can eventually become monotonous. Instead, the earlier one embraces this dynamic approach to post-career life, the greater the opportunity to integrate these lessons. Time, as always, moves swiftly, making intentional living and purposeful engagement all the more critical.
Strategic Planning for Your Own Journey
For those inspired to embark on their own journey away from traditional employment, strategic planning is essential. Understanding how to manage your exit and monitor your financial progress are crucial steps.
Negotiating Your Exit
One of the most impactful steps in transitioning from work is negotiating a separation package. This strategy provides a financial cushion, allowing for greater flexibility and peace of mind as you embark on a new chapter. If you are already planning to leave, there is virtually no downside to exploring this option. Successfully negotiating a severance can feel like winning the lottery, providing capital to pursue your ideal lifestyle.
Both this author and his spouse successfully negotiated severance packages, a decision that proved instrumental in gaining financial freedom and establishing a life as "Dual Unemployed Parents" raising young children. The experience of being free to shape one's own life has been profoundly rewarding.
Essential Tools for Financial Planning
Building wealth and effectively managing your finances during a fake retirement requires robust tools. Empower stands out as a free online platform that aggregates all your financial accounts onto a single dashboard, simplifying tracking and optimization. This eliminates the need to log into multiple systems, offering a clear, consolidated view of your financial health.
Empower's Retirement Planning Calculator is particularly valuable, utilizing real data and Monte Carlo simulations to model various financial scenarios. This allows for a highly realistic assessment of your financial future by incorporating multiple expense inputs. Additionally, Boldin provides specialized retirement planning software, focusing on both pre- and post-retirement financial management, offering another layer of strategic support for your evolving financial journey.
