Bad Monday?
You’re in the right place. Let’s talk about how to semi-retire and leave the cubicle behind sooner. We already have FatFIRE and LeanFIRE—let’s add SemiFIRE to the mix.
A semi-retired friend, Uncle Daryl, inspired this piece. We met over coffee last year and he told me his career story. He’s one of the pioneers of SemiFIRE. Fed up with unreasonable bosses, Daryl teamed up with a colleague to start a consulting firm.
It was rough at first. He had to win clients and support a family. Over time the business became steady, and Daryl thrived as his own boss. Now he and his wife Mary spend winters in Arizona and summers in Minnesota, where he worked most of his career.
Readers of Abandoned Cubicle know I wage a personal war against the office life. Many posts explore my struggle with work-life balance and the dream of financial independence. You’d think I hated every minute in an office chair. SemiFIRE makes many dull jobs bearable if you only work half the hours.
By February 2020, I could jump out of the corporate plane. But what if I don’t have a landing spot? Unlike Daryl, I don’t yet know what I’d move to. My indecision would vanish if my employer let me go part-time.
I could hunt for part-time work—and maybe even find health benefits. Part-time consulting would be ideal, but I’d need to match skills with enjoyable tasks.
I can picture myself doing real estate investment consulting, launching a “Coach Cubert” course, or speaking at conferences. I’m not sure that last one exists yet, but it’s worth exploring. At least I’d avoid boredom.
A friend recently moved from corporate life into consulting—and now he’s over-committed with three gigs. Weekends and family time have suffered. Does he need to take that much on? Probably not, especially if he’s still driving a slick Audi and living in a huge house.
Here’s a thought: Maybe you get hooked on HGTV and start dreaming of beachfront living. You picture yourself as one of those picky couples who finally finds the perfect place with no work required.
If you want warm weather or a beach, do the homework—find places where your money stretches farther. Traditional retirees already move to low-tax states like Nevada, Arizona, and Florida. We just need better school funding in those places.
Another option is semi-retiring abroad. Work part-time, enjoy cheap living, low housing costs, and reliable healthcare. Costa Rica, anyone? This can be tricky if you have kids or aging parents—though you could bring them along.
Retiring overseas is growing in popularity. SemiFIRE can work if you’re ready to learn a new language and adapt to new customs. It’s not for everyone—my own real estate and business ties keep me put—but I can imagine snowbirding to Costa Rica in later years.
There’s also LeanFIRE—the Mr. Money Mustache route. Save aggressively, retire in your 30s or 40s, and live a frugal life on $40K or less. Self-reliance and simplicity are the core ideas. To be fair, having a famous blog and travel options doesn’t hurt.
SemiFIRE is different. You don’t cap your lifestyle at a low number. You can semi-retire and spend $60K or $80K a year. Say you saved $2 million and reach age 55. You might want to keep working part-time to afford little luxuries—a bigger boat, maybe. Picture yourself processing tax returns a few hours a day with a parrot on your shoulder and Jimmy Buffett on repeat. There’s no single right way to retire early—just how you want to spend your days after leaving the cubicle.
The main appeal of SemiFIRE is not waiting until you’ve saved enough to stop working entirely. But there are downsides.
First, you’ll earn income. If you planned your ACA subsidies assuming zero income, you’ll need to rerun the numbers—your subsidy could drop a lot. (That’s less of an issue if you move offshore.)
Also, part-time jobs can have the same annoyances as full-time ones. I dealt with terrible managers in part-time work in high school and college—they’re still out there. The good news: you only have to deal with them 15–20 hours a week.
Some part-time work could put you back in a cubicle or involve repetitive physical tasks with real wear-and-tear. Be aware of those risks—stay active, eat well, or choose a job with healthy physical activity. Mail delivery might be fine—until an angry dog shows up…
Your math might show that a few more years of part-time work gets you to the 25x annual expenses target. You’re never too old to earn money, though you might not want to be greeting your peers at Walmart in your 90s.
Here’s the simple SemiFIRE math: if you need $50,000 a year but your savings at a 4% withdrawal rate only give you $35,000, you need a job that pays $15,000 a year after tax. That’s roughly a $15/hour job at 20 hours a week.
Or, like Uncle Daryl, you could start consulting. Then you’re your own boss, can set higher rates, and pick your hours. If your skills are in demand, you can earn much more than a typical part-time gig. Consulting also offers tax advantages if you route income through an LLC.
There’s a variation called SeasonalFIRE—work part of the year and enjoy the rest. Work through the winter or summer and relax during the opposite season.
So, what do you think? Would you consider SemiFIRE? Ready to ditch the cubicle earlier than planned?