George Kamel - Gen-Z Is "Retiring" Early (Here's How)

Starting point is 00:00:05 Have you ever wished you could retire, like now? Well, there's a new trend sweeping the internet that could let you do just that, courtesy of finance bros and girly pops. Some are referring to it as an adult gap year, an early career sabbatical, micro-dosing retirement, but to keep things simple, I'm calling it micro-retirement. And no, that doesn't refer to the moment when micro decided to quit dirty jobs to join my YouTube channel, which he did momentarily, just for one episode. The dirtiest job of all.

Starting point is 00:00:32 So today we're going to go over exactly how micro-retirement works, some potential risks and why it's gotten so popular in the first place. And I'm going to spill the tea on what I think of this trend, and I'll give you some crucial guardrails to help you avoid the pitfalls. Before we jump in, be sure to subscribe to the channel and hit that like button because making these videos, that's my retirement plan, and your boy can't retire with less than a million subscribers. It's embarrassing.

Starting point is 00:00:54 What am I going to tell my grandkids? What am I going to tell Graham Stephan? He's going to be so disappointed. Don't take it from an old geezer like me. Let's see what this Gen Zier had to say about my pro-retirement. I heard the term micro retirement today, and it's basically where throughout your career, you take time off instead of waiting and deferring until you're older to take all of your retirement. And I am in a micro retirement right now. I actually took off six months ago from

Starting point is 00:01:20 my corporate job, and I've just started interviewing again. I planned on taking six months to a year off. And I have never felt better. I've never felt healthier. I've never felt more rested. And I will say I'm interviewing with some of the top companies in tech right now, and none of them seem to care that I've taken time off. All of the people I've spoken with have been like, I really want to do that. I should plan on doing that. I think our world is changing, and people and millennials who are in leadership roles are really starting to respect our need to take time off.

Starting point is 00:01:53 Great video. Really happy for you, truthfully, but also jealous. Nobody in big tech wants to hire me. I'm in little tech. Oh, but thank you for the explanation. I get it. Gen Z's out here. They've been working 14 days like, hey, guys, I need some time off. It's been a lot. Just the HR training alone is, oh my gosh. So basically, micro-retirement is like a sabbatical, except unlike a traditional sabbatical, where your employer gives you an extended vacation after several years of work,

Starting point is 00:02:20 taking a micro-retirement means quitting your job so you can take a break, typically between six months and a year. Then once the break is over, you go and find a new job, hopefully in big tech, because you are just a dewy-faced, beautiful Silicon Valley girly pop. We don't all have that luxury. So again, I am jealous, officially. You could do it if you believe in yourself. Now, we're not talking about someone taking a month or two off after leaving one job

Starting point is 00:02:42 and before the next one starts. This is more of a leap of faith slash trustfall journey that influencers are recommending you do throughout your career. And looking through the comments of that TikTok, this stuff is getting a lot of people excited. Like this account, AI tech founder, or what I secretly. hope is Al Tech Founder. Exactly.

Starting point is 00:03:02 Live your life whilst you can. Okay, definitely an AI account, I think is what they meant, because no human from this century has ever used the word whilst. Others, though, a bit more skeptical. Here's one. Sounds amazing, but we're broke, sister. There is. That's more of what I was thinking was going to happen.

Starting point is 00:03:20 This one from Beth, how do you possibly go back to work after the break? Just become a girly poppin tech. It was very talented, despite her young age. She's a tech mogul. What? Like it's hard? And then Titi Aguirre, can you share your skincare makeup routine? Oh, and any treatments. Gonna be honest, never see that comment on my YouTube channel, and it hurts.

Starting point is 00:03:43 You boy has some serums. He's got some retinoles. He could do better with the sugar and the caffeine and the sleep. He ain't quite dewy, but he's getting there. He's on his way. You got a long way to go, son. Now, those commenters are asking some great questions, and we'll address them in a minute. But first, let's answer a you. a different question. Why are people taking micro retirements in the first place? Well, the whole

Starting point is 00:04:03 idea here is that instead of working nonstop through your 60s, you take these long breaks throughout your career to travel, pursue hobbies, and get some good old-fashioned R&R. And according to the fans of this concept, it's a way to work and earn money while also not missing out on life or wasting your youth, sitting in a cubicle next to a guy who obsesses over a stapler and listens to the radio at a moderate volume from 9 to 11 a.m. So here's my take on micro retirement. Well, it may not be a terrible idea. It's just not really. for most people, and it can go horribly wrong if you're not careful. So I'm not against micro-retirements per se, but you've got to be cautious. Specifically, you need to consider three

Starting point is 00:04:37 significant risks. Risk number one, your money. You may have been wondering how you earn a living during a micro-retirement. The answer is, you don't, unless you get Daddy's trust fund, which in that case, honestly, happy for you. I don't think you are. Yep, turns out retiring from work also means retiring from income. And since most people can't feed their kids or pay the rent without a paycheck, this creates a bit of a problem. And this is the biggest reason micro-retirements aren't realistic for most people. You need a giant pile of cash saved up to get through a year or so of not earning any money. Plus, you'll need a way to pay for all this travel you'll supposedly be doing

Starting point is 00:05:10 while pursuing your BS and relaxation. And if you micro-retire without saving up a bunch of money beforehand, you'll wind up having to go right back to work just to pay bills, probably at the first job you can find, which could be spinning a sign outside of a payday lender while dressed as Lady Liberty. Or worse, you'll wind up relying on credit cards and other types of debt to make ends meet. But then money problems with micro-retirements don't end there. Because taking six months or a year off work also means taking that time from investing, and that can actually

Starting point is 00:05:36 make a big impact on your real retirement. How big? Let's say you're 29 years old and you want to micro-retire for a year. And we'll say you make 50,000 a year and you typically invest 15% of your income. That's $7,500 for that year that you would have invested. Well, at a 10% rate of return, the $7,500 you'd miss out on during that year would have grown to over $250,000 by the time you turn 65. So I hope that trip to the Poconos for an Instagram photo op was worth it, my friend. Bottom line, the day will come when you won't be able to work anymore, and when that happens, you'll need a big enough nest egg to pay for food, medical expenses, and multiple pairs of unisex New Balance 530s. You know, you know. Ultimate Dad's shoe. Risk number two,

Starting point is 00:06:20 your career. For starters, it's going to be tough to explain in a job interview why you have one or more random year-long gaps throughout your resume. Now, it's one thing to take time away for health reasons or to raise your kids, but if your only explanation for the time off is vibes, potential employers may assume you're a job hopper who won't stay put for very long, or that you had to serve a prison sentence for running an underground fight club for Roombas, which is my encore career. No one's getting hurt, except the Roombas. They are getting destroyed.

Starting point is 00:06:46 You do not talk about fight club. It's also hard to build any kind of momentum in your career if you're constantly taking these extended breaks. Even if you're not interested in being a C-sweeter one day or climbing a corporate ladder, you'll be losing valuable time that you could have been using to grow your skills. And growth is important in the professional world. Heck, I've grown a lot in my 12 years here, Ramsey. Feels good to finally hit 6-2.

Starting point is 00:07:07 The GMO is working, my friends. Sprinkle it. That's all you need. A little bit goes a long way. Risk number three is your life. Not what a micro-retirement will do to your life, but what it says about your life. Taking time off to rest is one thing. But doing it to escape your life, totally different.

Starting point is 00:07:24 And living a life where your main goal is saving up enough money to jump ship for six months and escape from a job you hate is a sad life. You shouldn't have to do all of that just to feel like you have something to look forward to. And if your work situation is so bad that getting away for a little bit of time is worth going through all this trouble, then the actual problem should be addressed, the job that you hate. So to sum it all up, while I'm not telling you to not take a micro-retirement, you do need to be cautious. And even if you are careful, it can still come back to bite you. But I've got good news. You don't need $50,000 in savings and a year off to eat prey love. Look, I definitely don't want you to work your whole life in a job you hate,

Starting point is 00:07:59 but taking a micro retirement isn't the only way to avoid that. So let me share some alternatives that are easier, more affordable, and more realistic. And best of all, they accomplish the same exact results of a micro retirement. But first, you know what else is micro? The interest rates for savings accounts on a lot of these brick and mortar banks. So instead of giving them your money and watching it grow at the speed that paint dries, open up a high yield savings account with online bank Laurel Road, a sponsor of today's video. They offer competitive interest rates, and that's not where the good stuff stops. There's no minimum balance required to open an account if your deposits are FDIC insured, and they'll never charge you monthly maintenance fees.

Starting point is 00:08:33 You work hard for your money, so let your money work harder for you. Get started by going to Laurel Road.com slash George or click the link in the description below. And for an easy way to free up some extra cash to throw into that high yield savings account, switch your phone plan to Tello, another sponsor of today's video. They're a mobile service provider, and they offer plans as low as five bucks a month. And they're unlimited everything plan, just 25 bucks a month. And don't think they're going to leave you a spotty service because Tello offers the same high-speed nationwide coverage as the big guys. And best of all, there's no contracts, no sneaky fees. You can upgrade, change plans whenever you feel like it.

Starting point is 00:09:06 So go to tello.com slash George and you'll get an extra five bucks off the unlimited data plan for your first month of service. Or use the link in the description below. All right. So what can you do instead of micro retirement to stay happy and healthy? Well, first, take regular vacations. Instead of getting so burnt out that you need to take a year off from your life, maintain a regular rhythm of taking time off to smell the roses. Go on the vacation, spend a few days at home playing with the kids,

Starting point is 00:09:30 take a week off to go see the world's largest ball of twine in Cocker City, Kansas. The possibilities are endless. Dream big. And don't tell me you don't have enough vacation days to make that happen, because the stats show 46% of people aren't taking all of their PTO. It's there for a reason, so use it. And if you work for a company that makes you feel guilty about taking your PTO, you need a permanent vacation from them and find elsewhere to work

Starting point is 00:09:52 with a healthier culture. And that leads us nicely into our other alternative. Find a new job. If your job sucks the life out of you to the point that you feel you need to escape from it for a year at a time, find a new one. I know it's going to take some time to do this, but it's so worth it for your life, for your future, and for your mental health. Don't just hop online and start randomly applying to jobs. Pause and evaluate whether you're even in the right career field for your talents and passions. As my friend in Ramsey personality, Ken Coleman would say, you got to look for something that lets you use your best talents to do what you're passionate about that creates meaningful results.

Starting point is 00:10:24 You need all three to make this work. And that may seem like a pipe dream, but it's absolutely something you can achieve. And if you want to learn how to do it, be sure to check out Ken's book, find the work you're wired to do. It comes with a get-clear career assessment, and I'll drop a link in the description below.

Starting point is 00:10:37 Now, if you're still dead set on barreling toward a micro-retirement, that's fine. But here's how I would recommend going about it. First, this is the prerequisite. Get out of consumer debt and save up three to six months of expenses in a fully funded emergency fund.

Starting point is 00:10:50 You'll also need to save up enough cash to pay for your life while you're out of work, both your typical bills and any travel you plan to do. And don't just fly by the seat of your pants with this. Sit down and make a detailed budget so you can get very clear on your expenses. And if you want an easy budgeting app to do this, I'll drop a link in the description to that as well. Oh, and don't forget to plan for health insurance premiums too. Your company won't be paying for it anymore, and it's not cheap out there on the open road and the dusty trails. Second, do not use this as an excuse to sit around and be lazy.

Starting point is 00:11:17 Rest is fine, but it's a bad idea to spend an entire year eating bonbons and bin watching Gray's Anatomy. Spoiler, McDreamy dies in a car crash, McSteemy dies in a plane crash, and Christina leaves to run a hospital in Switzerland. Boom, no need to watch it now. You're caught up through season 74, I think, is what they're on. Someone's day is ruined. They're about to get to the plane crash. You monster. But for real, use some of your time away to focus on personal and professional growth. Read a book. Take a free course online. Just don't brag about it on LinkedIn afterward. All right, no one's going to be impressed by your new certification and strategic synergy operations. And no one knows what that means anyways, because it's not real. And finally,

Starting point is 00:11:54 never ever use debt or a credit card to fund a micro retirement. Borrowing money completely defeats the purpose of micro retirement. The whole point is to de-stress, and running up debt will do nothing but add stress to your life. So there you have it, everything you need to know about micro-retirement. But I'm curious, what do you think about all this stuff? Would you consider a micro-retirement? Do you think this whole thing is kind of weird? Let me know in the comments below, and I'll reply to as many as possible. And by the way, this is not the only financial trend with the potential to leave you in a rough spot. Check out this video where I went over a mortgage trend that is sweeping the nation in all the wrong ways. I'll also leave a link in the description. That's it for today. Thanks for watching. See you next time.

George Kamel - Gen-Z Is "Retiring" Early (Here's How)

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