Financial independence expert Jillian Johnsrud discusses debunking retirement myths, planning mini-retirements, negotiating leaves of absence, and embracing lifestyle changes for personal growth. Topics include redefining retirement, transitioning into retirement, optimizing business efficiency, and navigating retirement challenges.
Negotiating a leave of absence for a mini retirement can be a feasible option, enabling a return to your job later.
Healthcare coverage during a mini retirement is crucial, with options like Cobra or partnering for alternate coverage.
Financial preparation for a sabbatical involves budget assessment, creative cost coverage methods, and seeking extra income sources.
Deep dives
Negotiating Leave of Absence with Employer
When considering a mini retirement, negotiating a leave of absence with your current employer can be a feasible option, especially for shorter durations like one to three months. This negotiation allows you to step away from your primary career while maintaining the opportunity to return to your job. For longer mini retirements, separation from the company might be necessary, but exit negotiations can be beneficial to ensure a potential job upon return.
Securing Health Care Coverage
Ensuring health care coverage during a mini retirement is crucial. Options include looking into Cobra for shorter durations, exchanging plans for longer periods, or exploring strategies like partnering with a working spouse to alternate coverage during periods of time off. It is recommended to prioritize health care coverage to mitigate potential financial risks in case of emergencies.
Budgeting and Income Strategies for a Sabbatical
Financial preparation for a sabbatical involves assessing baseline budgets, itemizing costs for planned activities, and seeking creative ways to cover expenses. Exploring techniques like renting out your home while traveling or utilizing credit card points for flights can help offset costs. Additionally, seeking extra income sources during the mini retirement period can provide financial stability and lessen the stress of spending down savings or investments.
Benefits of Mini-Retirements
Mini-retirements offer self-employed individuals the chance to step back from their business without fully walking away, allowing for improved systems and processes to be implemented. By automating or delegating 80% of tasks and focusing on vital 20%, individuals can experience the benefits of mini-retirements while ensuring business continuity and growth.
Challenges of Regular Retirements
Regular retirements can present challenges such as adjusting to extended time away from work, potential burnout recovery periods, and maintaining social connections. Couples may experience conflict due to increased time together, while managing children's education during breaks requires planning and coordination. These challenges highlight the importance of balancing personal time off with ongoing life responsibilities.
The preconceived notion of the word “retirement” is one of the biggest hurdles to overcome here in the US. Be honest- what do you think of when you hear that someone is retiring? Maybe you think of someone who is a bit older or maybe they’re past their prime. You might not go as far as to say they’re “giving up”, but there’s this idea that they’ve put in several decades of hard work and are now kicking back. And if you attempt to picture yourself in that situation, it’s often so far off into the future that it’s difficult to have any connection to that future version of you. Honestly you probably don’t have any idea of what retirement might look like. Well, HOLD THOSE THOUGHTS, because these are precisely the types of problems that our friend Jillian Johnsrud loves to help folks navigate. She writes over at RetireOften.com, hosts a podcast by the same name, and coaches individuals who are looking to custom build a lifestyle that perfectly reflects their values, passion, and purpose. And while “retiring often” might sound like a luxury reserved for the ultra-wealthy, Jillian is here to point out that it’s more achievable than you think. Today we discuss what constitutes a mini-retirement, how long they should be, the kinds of goals you should set during a mini-retirement, and how to negotiate one with your employer.
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