Well, here we are – it’s time for another retirement update where I share what it’s like in the retired world of ESI!
My last official update was Retirement Update: 7.5 Years. You’ll want to read that one to catch up if you missed it.
Before I dive in to details, let me share the one issue that has dominated my life the last three months: my back.
As I reported in my last update, I had injured my back somehow and even at that point I was trying to get better. Well, I kept trying, unsuccessfully, and things went downward quickly.
I’ll give the details below, but just know up front that it greatly impacted what I was able to do this quarter – and thus this update is rather sparse compared to many.
With that said, let’s get started…
Life
It’s never a boring life in retirement (at least for us!) so lots has happened over the course of three months. Here are the highlights of general “life” activity:
- Before my back made me mostly a homebody, I had several lunches with Millionaire Money Mentor (MMM) friends who live in or were visiting FL. That’s the great thing about both MMM and The Villages – it’s easy to make really good friends very quickly. It’s something I’m very thankful for (yes, even an introvert like me!)
- My wife and I visited Animal Kingdom with a couple friends (I met the husband through MMM) who live near Orlando. They know all the ins and outs of Disney so in addition to seeing them an added treat is they really know what to see/do in every park. After this trip, we’ve been to all four Disney parks over the past few months and I made my list of what I considered the best rides (which I shared and we all debated in the MMM.) I’ll list my thoughts and those of my expert friend below.
- My dad came over for the Super Bowl and we enjoyed the game (he’s a KC fan as Iowa doesn’t have a team.) I loved having the NFL package on YouTube TV this year and I’ve already ordered it for next season.
- My wife’s middle sister and her husband stopped by our place on their way home (up north) and we had another great visit with them. They’ll be back again the same time next year as they come to Florida annually for one month.
- Both my wife and I had our birthdays this quarter. It was a milestone one for me and about the same time my back gave up the ghost. I’m wondering if the two events are related or just coincidence. LOL!
- My wife and I made a February trip to Raleigh for another scouting trip for our kids, which came in handy because…our kids (daughter and son-in-law) have decided that they are moving to the Raleigh/Durham/Chapel Hill area of North Carolina. They have secured an apartment and will be there later this month. They will get the lay of the land and sell their Colorado house, then look for a home to buy in NC. It will be great having them a 9-hour drive away instead of a 24-hour drive away! It also looks like our son will move there as well!
- My wife and I visited the cute tourist town of Mt. Dora, Florida. She had wanted to go there for awhile and that’s what we did for her birthday. It was a fun trip with little shops. We probably won’t need to ever go back there again but it was nice for a single trip.
- My dad’s older brother (my uncle by marriage) died in April. My wife helped my dad make his travel arrangements and he went back to Iowa for the funeral. We did not go as there’s no way I could have made it with my back.
My Favorite Disney Rides
As promised above, here are my thoughts on the best Disney World rides as posted in the MMM forums…
Now that I’ve been to Disney World multiple times through the years (and even multiple times the past couple of months), I want to list my top ten rides. I think it will be a nice subject for those of us who like Disney and a good resource for those thinking of going.
I know others will have different opinions but that’s the fun of the forums, right?
I looked at the challenge by considering “what rides would I go on one more time if I could only ride 10 rides in all of Disney World”?
Here’s my list, based on my preferences (and quirks – there are a few surprises/differences from the norm) along with the park the ride is in:
- Star Wars Rise of the Resistance (Hollywood Studios)
- Avatar Flight of Passage (Animal Kingdom)
- Guardians of the Galaxy Cosmic Rewind (Epcot)
- Soarin’ (Epcot)
- Toy Story Mania (Hollywood Studios)
- Pirates of the Caribbean (Magic Kingdom)
- Carousel of Progress (Magic Kingdom)
- The Haunted Mansion (Magic Kingdom)
- Remy’s Ratatouille Adventure (Epcot)
- Expedition Everest (Animal Kingdom)
My buddy the Disney expert posted his thoughts as follows:
I would have told you that my absolute favorite ride was Splash Mountain in the Magic Kingdom. I love the ride. I also love that movie which is completely misunderstood by so many. However that is now closed and the replacement has not yet opened. So here is my current list:
- Avatar Flight of Passage (Animal Kingdom)
- Toy Story Mania (Hollywood Studios)
- Kilimanjaro Safaris (Animal Kingdom)
- Soarin’ (Epcot)
- Jungle Cruise (Magic Kingdom)
- Mickey’s Philharmagic (Magic Kingdom)
- The Haunted Mansion (Magic Kingdom)
- Star Wars Rise of the Resistance (Hollywood Studios)
- Peter Pan’s Flight (Magic Kingdom)
- Pirates of the Caribbean (Magic Kingdom)
I must have started with a list of like 18 and it was darn tough to toss away those eight. I will say there are some absolutely charming less famous rides/attractions that I enjoy so very much as well but Top 10 is tough.
How about you? Are there any rides not here that you’d put in your top 10?
Health
As you know, I prioritize being healthy in retirement. Here’s how I did this past quarter in this area starting with my back:
- I don’t know what I did to my back. I have had issues off and on for decades but had been symptom free for eight years in Colorado. My guess is I tweaked it slightly, then didn’t slow down and made it worse. Then I tried stretches/rolling/etc. (on my own) that made it even worse. Then I tried a chiropractor (who might have made it worse yet.) Ugh.
- So after all the above, I went to an orthopedic doctor. She took x-rays, found nothing, gave me drugs, and told me to come back in two weeks. I did and nothing was better. This time she ordered an MRI and gave me different drugs. The MRI place usually takes TWO MONTHS to get into, but by a miracle they had a cancellation the same day the doctor ordered it, so within a week we knew I had a small disc tear which should respond to physical therapy (PT). (This was in early April. Just imagine, if it had taken me two months to get an MRI I would only be halfway through that period now – and still a month away from knowing my issue and getting the right treatment. Crazy!!!)
- I started PT a week later and found two great therapists who have been amazing so far. As of this writing we are three weeks into it and we’re making progress. For those of you who pray, I’d appreciate it if you’d remember me and pray for quick and complete healing.
- Oh, and in the middle of all this I got the flu. The last time I had the flu was many years ago when I didn’t get my flu shot. It was bad then, so I have always gotten my flu shots since that time. Except I waited this year, time went by, and I thought we were out of flu season, so I didn’t get a shot…and instead got the flu. Will I ever learn?
- By the way, I had no gym, no pickleball, no nothing for a couple months. I can’t sit or stand comfortably but I can walk, so I’m racking up tons of steps per day because even when I eat I’m pacing. I’m also doing my PT exercises twice a day and they are as painful as any workout…ugh. I’m also doing some PT-approved strength exercises and I have recently gone back into the gym to do those.
- I might write a blog post about this but my back incident has been a reminder to me that you never know your last day of something. You’re headed along in life and all is going well when BAM – something comes out of nowhere and changes your reality. You never know when it’s coming and how long it will stay (it could be forever.) The lessons are to try and take care of yourself, do what you want while you can, and be thankful for today because no one is guaranteed tomorrow.
- BTW, from time-to-time I have had negative events happen in my life – or at least they appeared to be negative at the time (like getting fired after leading a company to record-breaking financial results.) But over time as things played out, what appeared to be negative actually turned out to be blessings in disguise. I’m choosing to believe that this physical setback will ultimately lead to positive change in my life, so I’m looking forward to that. Whether that happens or not is TBD and time will tell, but that’s what I am hoping for.
A Tale of Two Dads
As I’ve noted in the past, my biological dad (BD) has pancreatic cancer. This is not my dad that lives in The Villages (who is actually my step-dad), but BD lives in Des Moines, Iowa with his wife.
Well let me update that to say that he had pancreatic cancer. As in past tense.
He did all the chemo treatments, then had surgery to remove the tumor. It had not spread and as of now he is cancer free!!!
That said, my dad down here has had some issues with his arm and he’s been going to his own PT. He feels like it is helping but he’s still fighting it.
Financial Update
Here’s a brief update of our financial matters for the last quarter:
- Things were great for us (and the rest of the country) through the end of March. We hit our all-time high then of $7.1 million. Then the April sell-off came and the market dropped. We ended last month with a net worth of $6.8 million. I know, cry me a river. We’re still up versus the beginning of the year and over double what our net worth was when I retired.
- To pile on the bad news, some of our syndication investments are on the rocks because the operators got caught in the fast interest rate run-ups. To date, I have four of them that are in difficulty of some sort, including one that has asked for a capital call (which I am not participating in). Once things sort out and I see what happens, I will be sharing which syndicators I would/will do business with again and which ones I won’t. But the jury is still out on those decisions for now.
- That said, I had another deal go full cycle (as projected and performing as promised) in March which puts me at 5 deals completed as agreed out of 18 total. I have 13 remaining and of those, four are questionable. The good news is that I’ve heard through the grapevine that a couple of my deals might be selling at around 2x the initial investment, so if those happens it would be quite nice! We’ll see.
- That’s a key learning from my syndication investments: diversify. Buying these is like buying individual stocks — some do very well, some bomb, and some (most) are average. Hopefully, in the end, the good ones out-perform the bad ones. That said, you know what I generally think about buying individual stocks (my dividend stocks are the exception.)
- Once the dust settles, I will probably either 1) concentrate my syndications to the three operators who have managed to do well (as projected) or 2) move out of syndications altogether. The pros of these investments are good potential returns in an asset class I like, but the cons are that you have zero control and liquidity and can even be swindled if you get in with the wrong group. Plus for me, do I really want to lock my money away for 5-10 years at my age? Probably not.
- In addition, we have a guy in MMM who’s amazing at analyzing these deals. His work background allows him to read the agreements, know the ins and outs completely, and do a complete financial analysis of any deal – and even he can’t pick winners all the time. What sort of chance do us mere mortals have? So in the end I see maybe $500k in syndications going forward…maybe less. Most will be in short-term deals (12-18 months.) Time will tell.
- ESI Money is doing well. I always need more millionaire interviews (which gets you into MMM for free after your post goes live and if you agree to be active in the forums). I have a very long list of people who have asked to do these interviews and I’ve sent the instructions/questions off to, but who have yet to get back to me. Come on, people! Your stories will help others — and every story counts!!!
- I also need retirement interviews. Even more than the millionaire interviews, your story will help demystify retirement as well as give suggestions that will help others have a better, more successful retirement. Here’s one example of that – a quote from someone in the Millionaire Money Mentors forums: “All of those ESI ‘Retirement Interviews’ as well as your breakdown of books on the matter have me feeling like I’ve gained an MBA in early retirement.” That’s what I’m trying to do! If you can help, let me know.
- Now that I’ve passed 400 millionaire interviews (not published, but I have then in-hand), I have a new set of posts I’ll be running that I think are quite interesting. I’ve selected what I consider to be the most compelling and important questions in the interviews and collected them in one place (one question answered by an army of millionaires.) I’ll be running these (by question/theme) as seeing them all together really hammers home some key insights that are worth making IMO. Look for those coming later this year.
- The Millionaire Money Mentors had our second annual conference last month, and it was again a highlight. I couldn’t participate as much as I wanted because of my back, but what I was able to be there for was AMAZING. There are some really, really great people in MMM and I’m so lucky to know many of them personally.
In the MMM forums I recently saw a term I was not familiar with: HENRYs. I was familiar with the concept (I think The Millionaire Next Door deemed it “big hat, no cattle”) but have never seen it as an acronym.
Here’s how Investopedia describes it:
High Earners, Not Rich Yet (HENRYs) is a term to describe people who earn high incomes, usually between $250,000 to $500,000, but have not saved or invested enough to be considered rich. Most of HENRYs’ incomes are consumed by consumer spending, educational costs, and housing. Not much remains for retirement and investments, which makes achieving a wealthy status difficult.
To better their financial position, HENRYs can employ different strategies, such as reducing debt, increasing contributions to retirement and investment accounts, and reducing tax obligations, as well as seek help from a professional wealth advisor. In no time they can see the scale move from “not rich yet” to “high society.”
So they have high incomes, but not high wealth. Some thoughts on this:
- Earning a ton is a great first step to grow your wealth, but…
- Spending/savings is key. You can spend everything you make (and then some) and this is what most people do. In short, it’s the spending, stupid.
- Along with this, you have to invest as much as you can for as long as you can (within reason). There’s a reason this site is ESI Money and not just E Money. 😉
- Income and wealth accumulation are not correlated (as least I haven’t seen anything to show this in the past 25 years or so.) In fact, most studies will say they aren’t correlated, which is both surprising and sad.
- The media constantly uses “income” as a measure of “wealth” which DRIVES ME CRAZY!!! But it is what it is. Quite simply, most of the media has no idea what they are reporting on and they are simply trying to create an illusion of competence.
ChatGPT on The Villages
I always like to include some thoughts on The Villages in these updates as I know some are interested in what it’s really like down here.
As you know, I have been playing with ChatGPT (often to my great enjoyment) to see what it can and can’t do. (I will say it’s fast but often needs a lot of prompting to get an answer that’s relatively decent at times.)
So I posed the following to it:
Write an article for me covering the main facts about The Villages, FL
It responded…
————————-
Here are some fascinating facts about The Villages, Florida:
Population and Growth:
- The Villages is a 55+ community located about an hour north of Orlando in Central Florida.
- It is consistently the best-selling and fastest-growing master-planned community in the country.
The population of The Villages has surpassed 130,000 residents, with more than 4,500 new residents joining annually. - To maintain its 55+ status under federal law, at least 80% of homes must be occupied by individuals aged 55 or older.
- The average age in The Villages is 62 for males and 60 for females.
- The median household income is reported as $61,333, but The Villages Commercial Property Management promotes an average household income of $93,8001.
Veterans Community:
- The Villages is home to one of the highest concentrations of veterans in the nation, with over 20,000 veterans residing here.
- It has the second-highest percentage of former members of the armed forces, trailing only Mountain Home, Idaho.
- The community hosts various veterans’ groups and organizations, including Villagers for Veterans and the Villages Honor Flight.
Real Estate:
- New home sales in The Villages average approximately 200-250 per month.
- Pre-owned home sales average 200 per month.
- Home prices range from $200,000 to over 1 million dollars.
- Half of the homebuyers in The Villages pay cash for their houses.
- Villages vary in size from 100 homes to 1550 homes, with the largest being the Village of Duval with 1550 homes.
- The Villages’ property area covers over 33,000 acres.
Location and Infrastructure:
- The Villages is located about an hour north of Orlando.
- It spans parts of three counties in Florida: Lake, Sumter, and Marion.
- The community boasts over 100 miles of golf cart paths.
- Approximately 150,000 people travel through The Villages each day along its busiest corridor, US 441/27.
- There are five water towers and over 1,200 miles of water mains.
- Additionally, The Villages has over 8,000 manholes.
Size and Unique Features:
- All combined, The Villages cover more than 80 square miles (equivalent to more than 51,200 acres).
- The community is larger than the island of Manhattan.
- The Villages’ 750 miles of roads surpass Manhattan’s 508 miles.
- It is made up of 17 unique neighborhoods.
In summary, The Villages is not only a thriving retirement community but also a remarkable example of planned development and community living. Its growth, veteran-friendly environment, and extensive infrastructure make it a unique and vibrant place to call home.
————————-
So…not bad, but certainly not all accurate.
I’m not sure what time frame ChatGPT goes up to these days, but some of the numbers (like population, size, etc.) are outdated (too low).
And some facts are simply wrong: like the average ages and number of neighborhoods (if they mean “villages.”)
Overall I’d say it is a decent attempt and I’d give it a C+.
If you want facts straight from the horse’s mouth, here’s a link to The Villages Annual Report which was recently released.
Books
I have made a resolution to read/listen to one book a month for 2024. As of now I’m at ten – including the ones in process. Here are the new ones I read at least part of this quarter:
- Simple Money. Rich Life. – Here’s another book where the author is a good friend and fellow blogger. I loved the book – especially for its many thoughts on giving (which is something sorely lacking in many money books IMO.)
- The Back Mechanic – Someone in the MMM forums recommended this book, so I got it, read it, and loved it. Then my physical therapist mentioned it and had me do exercises from it. It’s amazing how things work out, huh?
- Be Useful – Good, basic information. I wish I had read it when I was 20 (when it wasn’t written yet, of course.) Perfect graduation gift IMO.
- The Covenant of Water – Love, love, love this book! It’s long (something like 30 hours on Audible) but was so well worth it – I didn’t want it to end! HIGHLY recommended!! In fact, I liked it so much I listened to Oprah interview the author for several podcast episodes.
- Medicare for Dummies – Really interesting reading! Hahahaha. I’m starting my Medicare learning pretty early because at some point I’m going to have to make this decision. We discuss it in the MMM forums and have a few very knowledgeable people there, so this reading is supplemental to what I’ve already learned.
- The Hate U Give – I bought this on sale at Audible and really liked it. It’s thought provoking as well as enjoyable.
- Younger Next Year – Just started this but already like it a lot. I bought both the Audible book and paperback so I’m reading and listening to it at the same time.
I was surprised to see a section on retirement at the beginning of Younger Next Year. Here’s a part of what the book had to say:
[Retirement] is such a huge deal and it makes plenty of sense to get ready for it as early as possible. Our modest suggestion is to do something that no one does in this country: Think about it. Plan and scheme and get ready. Build new networks of friends and commitments that will be there when the job ends. Think just a teeny bit about building a new you – and a new relationship with your partner, if you happen to have one. If you’re planning on working part-time or at something new – get your lines out, use your connections right now. Figure out what you’re going to do and how you’ll do it while you’re still a player. Retirement can be a fascinating and life-enhancing experience…one of the most interesting and important things that will ever happen to you. But it ain’t easy. And it’s dumb to sail into it without giving it some serious thought.
Pretty well said IMO for a book that’s not about retirement.
I could go on, but then this post would be way too long so I’ll end for now. Any thoughts or questions?
Jeff says
Your children are smart to be moving to Raleigh. Our daughter and son-in-law live there, having gone to college at UNC. It’s a great town for careers and lifestyles, with a moderate cost of living. Good choice!
Debbie says
Glad you have found a good Physical Therapist to go to. I hope they are also incorporating quality body mechanics. I always go over common activities of daily living and how to do them with a neutral back position. Also, I have my patients get a kid’s beach ball, deflate it so much that it looks flat, and then put it in their lumbar (low back) region for support. Usually, even more air needs to come out. Anyhow, the very deflated beach ball is the best lumbar support out there because the air moves to support you when you even move a tiny bit. Hope your back continues to improve. You are right about something out of nowhere changing one’s reality. I was involved in what looked like a minor car accident, not my fault. After three months of dealing with concussion, whiplash, and two types of vertigo from the impact, I have finally started to feel normal in my brain functions. Very thankful in my prayers to be feeling normal once again. Normal is a very wonderful thing.
Bev says
Stay off the Disney rides which can be jarring to your back and neck.
$3.0M+ says
Good news on your BD, and timely from my perspective. I’m working through “Outlive” right now, just finished his section on cancers.
As for you and your stepDad, do your PT! From experience. ‘nuff said. Hope you both improve!
And now I have some more books to look into based on your list….
Cheers!
MI173 says
TRON!!! TRON is easily #1 on my list!
Tower of Terror is another notable ride that would be on my list but not on yours. I’d probably put that somewhere in the top 5 – I love the story behind it and it’s just a fun experience over and over to me.
Kim says
Sending good thoughts for your back! Hope that physical therapy does the ticket for you.
Glad to hear that your dad’s cancer treatments worked—that is wonderful!!
The concept of HENRYs or big hat/no cattle is one that comes up sometimes between my husband (who doesn’t read personal finance books; defers to me on all that) and me. He will talk about people we know as “wealthy” because they earn a high income, and it takes a minute for us to sort out our language and get on the same page. We know lots of folks our age (late 30s) who earn a substantial amount in tech, medicine, etc., but probably don’t have an equivalent net worth yet.
Anyway it’s a useful concept and agree with you that the media is always using these terms in frustratingly interchangeable ways!
MI Jason says
We’ve discussed this on the MMM, But I really like Rockin’ Roller Coaster… Otherwise, I think your list is fine!
WRT back pain, chiropractic care has never been effective for me when I’ve had back issues. I stay far away. The biggest impact for a disc tear will be time…It just needs time to heal.
MI-TBD says
I’ll second that Rockin’ Roller Coaster. Very smooth and great music!
ESI says
Here’s my issue with the RRC…
When we went to Disney 15 years or so ago, the RRC was closed for repairs.
When we went last time, the RRC was closed for repairs, so we couldn’t do it. The it opened an hour later, we rushed there with the rest of the park, and waited in line for about 30 minutes, almost getting inside, when…they closed it for repairs AGAIN. And they told us to exit the line as it wasn’t going to be fixed anytime soon.
So we exited…and then it opened again an hour or so later.
We didn’t try again. I just assume it wasn’t meant to be…
MI-75 says
Congrats on 7 3/4 years of retirement! I have always enjoyed these updates.
Hope your back gets better. I’m surprised the chiro didn’t work out. I have been going to the chiro off and on for about 10 years, but I do have a preferred chiropractor so YMMV. Currently he’s a bit far for me since I’m still working from home. ;o)
Glad your Dads are doing great, and the cancer is cleared!
There are so many nuggets of wisdom here that I save for a later recall.
Best of Luck and looking forward to the 8th year update.
Financial Fives says
Hope your back is “back” to normal in no time, I know you like to be active and enjoy the amenities of the Villages. Congrats on almost 400 Interviews! You’re inspiring to have done so much while enjoying life as well. Good news on your BD as well. Thanks for another fulfilling update.
MI221 says
Kudos on 7 3/4 years of retirement, and great news on your BD! Lost my business partner to pancreatic cancer nine years ago. Your BD is very fortunate.
RE your back. Thanks to a local pain clinic, I had an RF (radio frequency) ablation on several nerves in my back. Took care of some very sharp pains, and now only an occasional mild twinge if I move wrong. Apparently works for a year or two, but can be “refreshed.” Happy with the results.
Best wishes for the next 7 3/4 years (and beyond.)
Andi says
Do you mind shari g how much an mri costs when you pay out of pocket?
ESI says
$390
May says
Hoping your back is feeling better! I will keep you in my prayers. Thank you for the book recommendations, I’ll get the book on backs for my hubby who has off and on back pain. Bravo to your dad recovering from pancreatic cancer! That is one of the worst cancers with a poor prognosis.
Paul says
Good luck with the back. Mine has been giving me fits for over a year. I’d get what would be an electrical shock just by a simple bending over and then that would be it for 2 weeks. You get these in succession and it spoils things for quite a while.
Now, the good news, I went to see the ortho as well and they got me into PT. The therapist has been really working a specific area and the cloud has been lifted. This may take some time, but I feel confident for your recovery as well. I have been speaking with my PT about a “maintenance” level where I don’t have the 2-3x/week, but maybe 1x every week or two just for them to check it out and make sure that area isn’t slipping…pardon the pun. I hope that you find a long term solution as back pain sure spoils your day.
I love your service and have learned so much. Having the MMM network has been a great resource for different ideas and I am taking advantage of all of that experience. Much appreciated.
Clay says
I read Younger Next Year a long time ago and enjoyed it.
What is sad, ironic and an eye opener is that the doctor who co-wrote the book died at 58 of prostate cancer. The book was how to live a good healthy life until 80 and beyond, but sometimes no matter what you do (I believe he was practicing what he was preaching), some things are out of your control.
JeffB MI20 says
I hit 5 years of retirement back in April. Been all over the world more than ever. Portfolio keeps going up. Life is good. Wife retires in 3 weeks.
Mark says
Over a year ago I tweaked my back and managed to make it much worse – my cause was also a mystery! I’m glad you found some good PT and are doing it twice a day. Time in a hot tub helped mine, and I’m sure the Villages have a few of those nearby. This may seem strange, but listening to this audiobook by a back expert really helped me improve – please give it a try! https://www.youtube.com/watch?v=lEJB1UcFRc4&t=3739s
Are you also offering access to MMM for retirement interviews??? I’ve been retired for 2.5 years and am finally comfortable with sharing how that transition is going.
ESI says
No, only for millionaire interviews.
Steve says
Thanks for posting – great article! All the talk about your back got me thinking – are you still on the health share ministry? I’d be curious about how that is working out, especially since my wife and I will be early retiring soon (also in The Villages) and will have to make a decision soon on which route we’ll go. Anyway – hope you feel better soon!
ESI says
Yes, still with the health share ministry and it’s working out well.