I’ve got an uncharacteristically short post today.
A few thoughts on the 3-legged stool.
It’s a metaphor we’ve all heard many times.
For example, I recall in my working days when we were working on large capital projects. Our engineer would frequently use the 3-legged stool argument. The legs he would cite? Cost – Quality – Time. If we asked for it sooner, he’d respond “You’re breaking one of the legs!” As in…
- “You can have it faster, but it will cost more”
- “You can have it cheaper, but you’ll get lower quality”
It turns out there’s also a great 3-legged stool metaphor for retirement.
The legs (and, more importantly, the implications for your retirement)?
Read on…
The 3-legged stool is a great metaphor for retirement. What are the 3 legs? Read on... Click To Tweet
The 3-Legged Stool of Retirement
Retirement is a game of tradeoffs.
If you work longer than you need to, you risk losing your health before you’re able to do the things you want to do.
If you retire too early, you risk running out of money before you die.
Finding the right balance is the key, and a helpful metaphor to think about those tradeoffs is the 3-legged stool. For retirement, I think of those three legs as:
- Time
- Money
- Health
We will all lose our health and time. You can’t get out of here alive.
Therefore, I’ll be controversial and state my belief that Money is the least important of the three. Of course money matters, but chances are it will be the last remaining leg on your stool. You’ll lose the other legs first.
Recognize the value of Health and Time.
Unlike money, they are the real sand in your hourglass, and they’ll be gone before you know it.
So…
- Do what you want to do while you’re still able to do it.
- Evaluate if “One More Year” of work is the best use of your limited remaining time.
- Do all you can do to invest in your Health.
- Prioritize your Time to avoid future regrets.
- Pause to be thankful for the legs on your stool.
We all focus on the money side of retirement.
Perhaps it’s time to focus as much, or more, on the two other legs.
Health and Time.
Just like money, both health and time can be optimized by thoughtful investment. If you’re not exercising, start now. If you’re wasting your time doing things that don’t matter, rethink your priorities.
Ultimately, health and time are the scarcest resources in our lives.
It’s a shame more of us don’t act accordingly.
Focus on reinforcing all 3 legs of your stool.
While you still have time.
Preach!
Always on target!! Happy Holidays!!
Powerful message today Fritz!
This is a wakeup call to people with a bad case of “one more year” syndrome. If you’ve got the means to retire, and want to, get out now! You’re health and time are limited. Enjoy both while you have them people!
Powerful message Fritz!
Very thoughtful advice indeed Fritz. All the money in the world won’t matter if we lose our heath or die at a young age.
Thank you. This is very challenging. It is good to be reminded of the scarcity of time and health. It is so easy to take good health for granted which I think can skew our thinking if we are fortunate enough to have this. I take from this the need to be even more purposeful about both health and time and hopefully there is a relationship between each of them.
Yes!! Seven and a half years into full retirement. With the additional time, I exercise more often and with greater intensity. I contact friends and family more frequently. I read more novels! Knowing that health is limited I travel internationally more frequently and knowing that I have enough dollars to fund my lifestyle I share with the next generation more generously. Happy Holidays Fritz – I’m grateful for your work.
All true unless you have a special needs kid like I do where the money is more important
Thank you for the warning shot!! I have been retired 33 months and have taken my across the US RV road trip and then loss interest in RVing. Now working with my church doing live stream. We just have to find our passion again like we did for work and move forward.
I think you should have at least stuck in the 3 actual legs to the retirement ‘stool’ – unless i missed it…
1. Your work pension or ret savings plan (401k, 403b, etc)
2. Your savings (Trad/Roth IRAs, mut fund & brokerage & savings accounts)
3. Social Security (this is one leg of the stool – not the whole stool as some may think).
Happy Holidays!
So true. I am very concerned for those who have nothing but SS to look forward to in retirement. They will likely be faced with dependency on relatives or friends. Some folks just don’t value themselves enough to plan for their future.
Not sure they don’t value themselves; personally, I think more often it’s a case of “I want what I want, and I want it now!” It’s more an unwillingness to sacrifice in the short term.
Certainly seems to be the case for many. But some folks just draw the short straw and it truly is not thier fault (special needs kid, unlucky in health, disabling accident not thier fault etc.). So far I have avoided the short straw and I am in the position of I just need to pull the trigger and retire/confident have enough at 56.
Great post Fritz. Very thoughtful, and when you put it like that, it seems pretty simple. The best things in life usually are, good reminder. Happy Thanksgiving, keep writing, you’re the best.
Thank you for this Fritz, coming around Thanksgiving is poignant indeed. The relationship between money and time is an interesting one. I recently wrote a post on my blog that we all will spend every penny we ever earn. We can chose to spend money on “stuff” or “our freedom/time.” To me, the most valuable tool my money can buy is my freedom/time. The opportunity to no longer have to trade my time for money is the goal I am pursuing. I don’t think money can necessarily buy us more time, but it can help us make the time we are blessed having spent doing what truly gives us fulfillment. Even if we don’t know exactly what that might be, we have the time to pursue those interests. Thank you again Fritz!
I would say that money or “your savings” are the price of admission into retirement, but I completely agree with you that time and especially health are your most valuable asset in retirement.
Fantastic Fritz, love the analogies, and they certainly resonate. I’m going through that thought now, and have decided I’d work 3 more years and hope that the other two legs hold up. I take the others ‘legs’ very seriously, but have to wait at least 3 years for the money leg to not let me down. Happy Thanksgiving!! Oh, I’m up to 96 miles so far on 2023 swim goal. I think I got this in the bag.
Great article that explains ‘Living in Retirement 101’ to the common man, in 1000 words or less. I retired at age 60 three yrs ago after 40 yrs in the finance industry. I invested heavily and created a wealth portfolio that allows my wife (she retired at age 60 this yr) and I to really focus on time & health in retirement. The secret is to live a balanced life juggling all elements of life like a good circus artist & ensuring you do not drop any plates that you toss up. Common sense, smartness, good heart and having good human/family values does make retirement a great stopover destination in our life journey from cradle to grave. I respect money, & it reciprocates accordingly.
Great article, I retired 23 months ago, my husband retired just this past November. We hope to enjoy some fruitful years traveling and enjoying an expected first grandchild
Agreed! Time and health are more important. We are focusing on doing the things (ie Machu Picchu/Galapagos) now, while we still can!
Mark
Ashame so many are resigned to poor health later in life. Doesn’t necessarily have to be if diet and exercise are foundations for living.
Unfortunately when you have young disabled daughter money becomes your priority and time and health take second place. But staying in good health is very important. Worked 50 years retired 6 years still in reasonably good shape at 81 and work out every day.
Thanks for another great post please keep it up.
Here here!!! I totally agree. Spend your time more wisely than your money. Do all you can to stay in good health.
Many thanks for the article.
Good points! But to me it’s more of a 5-legged stool since the money leg is 3 legs: SS, savings/investments, & pension/401k. Agree that when financially possible (not ideal or maxed out), retire!
To me, the ratio of adult working years to retired years should be 1 or ideally less. But I also realize for many, it will be much greater than 1 and likely well into double-digits. So I feel very fortunate to have retired 3 years ago with a planned ratio of 1 (hopefully). I also realise that as health declines through time, active years will reduce and the final ‘quality’ ratio will be just over 1 (again, hopefully)
Great post yet again Fritz! Your goal of motivating readers to stop and think about life has happened again. ;-}
I will add to it another thought to drill down on.
Time. What does one DO with it?
One thought would be: 1. Serve others 2. Live intentionally grateful for your life, relationships and all that you have 3. Be kind – an act of kindness might be just something you think of spontaneously, but change another person’s life in a profound way!
I loved another post (Bipin Sharma) in which a reader put a thought so poetically but profoundly; “Common sense, smartness, good heart and having good human/family values does make retirement a great stopover destination in our life journey from cradle to grave.” Love this!
Many blessings wished for you and Jackie. Keep up the thought provoking writings young man!
God speed to all of you, Steve
Obviously, this is a pro retirement, leave work early support group. I’m here because I was once planning to do the same but as the day neared, I chose differently. I do have the financial footing to easily walk away from work. I choose to continue working because ( in no particular order ):
1) I make it a priority to exercise daily and tend to my health.
2) The structure of work helps me eat right and be regimented with my diet.
3) I engage with smart people to problem solve difficult issues every day. I love the challenge! ( use it or lose it ).
4) I have built up a significant vacation allotment which allows me to travel or do whatever I choose to do with the many days off.
5) I continue to contribute to society as an income generating, tax paying, economic driver. I take pride in this. The front porch can wait.
6) While I’ll never spend all my money, I or my wife will be able to gift it to our Grandchildren, charities or likely, both. I’m building a financial legacy which will do good for others. It’s a good use of my time.
The list goes on and on but I wanted to give a counter balance. If I die tomorrow, I’ll have no regrets with how I’ve spent my time. I love every day, working or not.
Larry that’s great you believe it’s working for you, However, I’m going to assume your working for someone else? If your Legacy is your own business I can see still working. Larry if your working an hourly wage not so so much, your a slave to them . Ask yourself this is my Labor building someone else’s kids Legacy or a huge faceless Corporation, a Legacy ? I can’t see depriving ones self of their family of their time to work just one more day for someone else. Remember this Larry their is no Uhaul or Armored truck behind a hearse. Your life has meaning and more value to yourself and your family than to someone Damm Company. The Company looks at you as just one of the Workerbees ready to be replaced! Your time and health is irreversible my friend. If you want to work part time for yourself to pass a business or some funds on thats great. Please don’t waste your retirement on a Company they are don’t care about you or more importantly your family !
A little bitter about your work life Scott? Too bad.
I have a great relationship with my ” faceless ” corporate employer. I exchange my time and talent for all of the things I originally posted. Where do the corporate earning go? To shareholders.. which includes me. Thank you very much.
I read this initially and thought it was interesting. After watching behaviors and talking with people over Thanksgiving, I think it may be profound. Many in America value money more than health and time. Relatedly, health insurance (sick care) seems to make some feel entitled to eat badly and not exercise, trading money for time and health waste. More money to eat out more to achieve poorer health and waste more time. The paradigm of health-time-money is valuable and will I think be a useful framework for making prudent decisions. Thank you for the post.
Nice stool metaphor, but I would like to add my 2-cents.
Financial – Leg
Relationship – Leg
Health – Leg
Humanity – Leg
The seat on top of the stool is the “TIME”. If you have SUCCESSFULLY built all 4 legs for your stool,
the “TIME” will extended just a little beyond your natural life span (encompassed your retirement).
Our human-ancestors had successfully done it!
Have a fantastic life everyone!
Larry that’s great you believe it’s working for you, However, I’m going to assume your working for someone else? If your Legacy is your own business I can see still working. Larry if your working an hourly wage not so so much, your a slave to them . Ask yourself this is my Labor building someone else’s kids Legacy or a huge faceless Corporation, a Legacy ? I can’t see depriving ones self of their family of their time to work just one more day for someone else. Remember this Larry their is no Uhaul or Armored truck behind a hearse. Your life has meaning and more value to yourself and your family than to someone Damm Company. The Company looks at you as just one of the Workerbees ready to be replaced! Your time and health is irreversible my friend. If you want to work part time for yourself to pass a business or some funds on thats great. Please don’t waste your retirement on a Company they are don’t care about you or more importantly your family !
Fritz great article ! I am 55yrs old as of last month. I retired in March 2022 from State Law Enforcement with 28 yrs of service! I also am retired USAFR in gray zone awaiting pay at 60. I faced this very question after being a workaholic: Should I work just one more year vs taking my pension! The answer was as loud and as clear as the choir in church Fritz, a resounding “No” ! I was one of those guys just one more year. I had this mindset until I had a discussion while working covering a weekend with one of my Troopers. The Trooper basically laid out the three legged stool reasoning coupled with my numbers. The numbers indicated i was going to work everyday for a really good subway sandwhich vs taking my pension. One thing about the stool approach I have learned is to balance it even in retirement. Priority one folks maintain health. I have incorporated exercise and working out into a part time physical job in my mornings. Bottom line I have learned is health = time. Money should already be on the stool guys. Remember you can always make more money you can’t turn back the hour glass of Time !
Thanks for your words of wisdom, Fritz. When facing the “when to retire” dilemma a few years ago, all three of your “legs” came into play. Two of my best friends that are a few years older than me experienced life changing health issues (one became blind and the other lost the ability to use his legs). This hit close to home; we decided life is too short to keep working another year. We retired at 57 and have been been enjoying life ever since. We walked away from high-paying jobs at a relatively young age and have no regrets. So, yes, we deemed the money “leg” least important! Fortunately, we are in good health and hopefully that will continue so we can make the most of our go-go years!
Thx for the reminder. Retired 7 yrs ago, but still have to work in balancing the remaining two kegs if the stool. I have had to learn how to say no to others so I can focus on health & spending my time the way I planned. Just because work ends, I still have to concentrate keeping everything in balance. Keep up the good work, sometimes your reminders are just what I need to get back on track!
Thx for the reminder. Retired 7 yrs ago, but still have to work in balancing the remaining two legs of the stool. I have had to learn how to say no to others so I can focus on health & spending my time the way I planned. Just because work ends, I still have to concentrate keeping everything in balance. Keep up the good work, sometimes your reminders are just what I need to get back on track!
Simple and very impactful — well said Fritz! Like at a Grocery Store, Time and Health are Perishable Goods that need to be “consumed and used” well before their expiration dates……..
Hey Fritz,
Another excellent article. All three legs are so important with time being, maybe the most critical. I have decided to retire next December at age 64.
So God willing that is the plan. NO more one more year…..
My wife and I are looking forward to the next chapter in our lives.
Blessings,
Paul and Susan
Michigan
Wow, Fritz. Another excellent post. With the experience of completing 1 year of retirement, the end of this month, I’m aligned with your stool illustration. While it’s tempting to add more “legs,” I feel you’ve captured the essential few.
Thank you for continuing to add insights and inspiration to your readers!