No. of Recommendations: 11
OK I admit it, I was wrong.

In the past, I didn't see anything wrong with calling yourself "retired" if you still needed to work in order to meet your expenses. I saw no need to be a purist: ie if you work then you can't call yourself retired. But after reading over the Hocus plan again, I began to recognize that the problem doesn't lie with mere word definitions. The problem lies with not recognizing the potential risks that one runs with this type of plan.

One problem with this type of plan is that I think we tend to overestimate the amount of money that we can make, our post-FIRE motivation to work, and the availability of desirable part jobs. Some professional folks are lucky in that they work for themselves and can easily downscale. The rest of us are not so lucky.

If you were FI when you retired, this is no big deal. However it is different for those who have to work. Out of desperation, you might be forced to take a really undesirable part-time job. Your pre-FIRE job may start to look pretty good after you have done a turn as a Wal-mart Greeter :-)

Another problem is that going into retirement already needing to work limits your options should your plan begin to to fail. The truly FIREd can keep going back to work as a ultimate plan "B"--but if you are already working... It's similiar to comparing a two-income family to one with a stay-at-home spouse: The one income family has the option where the stay-at-home spouse can start working, thus increasing their income.
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