Why I Retired at 32: Carl Seidman at TEDxIIT (Full Transcript)

Full transcript of keynote speaker and executive coach Carl Seidman’s TEDx Talk: Why I Retired at 32 at TEDxIIT conference. To learn more about the speaker, read the bio here.

Notable quote from the talk:

“We need to reinvent and redefine what retirement means, as well as the path to get there. Instead of waiting until the final chapter of life to retire, we should take small interim retirements throughout our life, allowing ourselves the chance to refresh, re-energize and reinvent ourselves and our careers.”

 

Carl Seidman – Keynote speaker and executive coach

To paraphrase Edward Rooney, the principal in “Ferris Bueller’s Day Off,” we give good kids bad ideas. We tell them to go to school, study hard and get good grades.

And if you do, you will get out into the workforce and get a good, secure job.

Then, after about 40 or 50 years, you’ll have enough savings and benefits to retire and live out the golden years of your life.

It’s a quaint idea, really, because, today, nearly half of the people in this country have zero savings. The majority of Americans have no pension coverage from their employers, and, just this past January, the Social Security Administration said that the average monthly benefit was just about $1,300, which isn’t going to get you very far in a city like Chicago.

On top of that, we’re living longer. A couple of years ago, Prudential unveiled a billboard that said that the first person was born who will live to be 150 years old. Can you imagine that? Living to be that old?

Under that scenario, you could still be an intern when you’re 50, and, when you reach the age of 70, learn that you’re only halfway to retirement.

Then, you’ll go to your financial planner, and they’ll say, “Well, I’ve got good news and I’ve got bad news. The bad news is you don’t have nearly enough money to retire, but the good news is you still have 30 more years to get there.”

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In all seriousness, we are entering an era where most people in this country will no longer be able to retire by choice and, instead, will be forced to work well into their 70s, 80s, and potentially even beyond.

If this is the new reality, how can you ensure that you’ll be able to live out the golden years of your life rather than dedicate the entirety of your life to your work?

We need to reinvent and redefine what retirement means, as well as the path to get there. Instead of waiting until the final chapter of life to retire, we should take small interim retirements throughout our life, allowing ourselves the chance to refresh, re-energize and reinvent ourselves and our careers.

I fear that, if something doesn’t change, we are on track to the worst socioeconomic crisis this country has ever seen. One of the most fundamental principles of financial economics is portfolio diversification, which most simply means: Don’t put all of your eggs in one basket. Spread your risk around.

So, for example, instead of spending all of your money on a house, you should spend some of your money on a house, leave some money in cash and invest some money in other investments. That way, if the housing market goes bust, the way that it did several years ago, your loss is limited by your diversification in other areas.

Ironically, when it comes to our education and our careers, we do the exact opposite. When you’re 18, we tell you to go think about the one thing that you want to do, seemingly for the rest of your life. And at this age, it’s also illegal for you to drink a beer.

Then when you start working, you’re going to be told to get really good at this one particular job function. It won’t be expected that you diversify yourself, and you probably won’t be expected to pursue other interests, because the general belief is that, if you follow this one path, you’ll be successful. And, if you don’t or if you move from one path to another, you’re increasing your risk and you’re more likely to fail.

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But neither of those assumptions is true.

Our world is changing so rapidly today, by the time young people graduate from school, they’re entering a world different than the one their education prepared them for. The skills and the value that you and I bring to our jobs in a short period of time may be replaced by technology or be irrelevant altogether.

If portfolio diversification is so important in financial economics, doesn’t it make sense that we do the same thing in our work and our lives?

Several years ago, at the age of 32, I took what I called my first retirement. While I had been saving some money for my ultimate retirement, I had also been putting money aside for this interim leave. I left my job as director of a business consulting firm, to go overseas, build my skills, my experience and pursue several entrepreneurial ideas.

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