Could you retire sooner than you think?
Forbes: 7 Simple Strategies to Retire Early Click Here
“I’m never going to be able to retire.” Have you ever mumbled this to yourself? If you have, you’re not alone. Over 1/3 of all Americans don’t believe they’ll have enough money to live off of in retirement. Ouch. With all the pessimistic view on retirement, then how in the blue blazes are there outliers that are able to buck the trend and retire in their 30’s? While they may be on the extreme side of retiring early there’s a lot to be learned from them.
So yes, even if you are one of pessimistic souls that believes that you can’t retire early, here are 7 simple early retirement strategies you can implement today:
1. Know Your “Numbers”
2. Lower Your Basic Cost of Living
3. Stay Out of Debt
4. Don’t Buy a House That Will Own You
5. Save More Than You Thought You Ever Could
6. You May Need to Increase Your Income
7. Make “Balance” Your Investment Guiding Principle
US News: 8 Reasons to Pursue Early Retirement Click Here
Most people retire during their 60s. To retire earlier than that requires planning, discipline and paying close attention to your savings and investments. But the sacrifices and extra effort are worth the trouble. Early retirement planning makes you rethink what brings you happiness and life satisfaction outside of your career and improves your financial footing.
Here are eight reasons to pursue early retirement:
- Address the future today (set your retirement goal)
- Increase your income
- Circumstances may require you to retire early
- Improve your relationships
- Prioritize your health
- Lower consumption and spending
- Failure isn’t a bad outcome – at least you’ll set your goal
WSJ: Let’s See How Ready for Retirement You Really Are Click Here
I have no idea when, or if, markets will settle down. What I do know is that it’s easy to get caught up in issues that are out of our hands: the markets, interest rates, changes in government programs, etc. At their worst, such anxieties can leave people paralyzed. Put another way, you could end up delaying—and delaying—your retirement for a very long time.
So…instead, focus on the parts of your retirement preparations where you have control.
Pop quiz: If you are, in fact, retiring in 2019, how many of the following steps—for which you’re the boss—have you taken?
- Setting a budget
- Reducing debt
- Timing Social Security
- Creating a pension
- Managing taxes
Dave Ramsey: How to Retire Early Click Here
How do I retire early?
That’s a question I hear a lot when I’m on the road. Maybe you’re concerned about health issues. Perhaps you want to chase that dream of owning your own business. Or maybe you feel led to do volunteer work. Whatever the reason, the question is the same: What would it take for me to retire at 60? Or even 55 or 50?
The answer depends on your financial situation, but if you’re serious about learning how to retire early, there are some things you need to do:
- Determine what kind of lifestyle you want in retirement.
- Create a mock retirement budget.
- Evaluate your current financial situation.
- Get serious about lifestyle changes.
- Pour everything into investing.
- Meet regularly with a financial advisor.
- Play it smart when you retire early.
The Motley Fool: Want to Retire Early? Handle These 3 Hurdles First Click Here
For many workers, the idea of retiring early is a dream they’ve pursued throughout their careers. Being able to have more time to do the things you want is a goal that nearly everyone has.
However, in order to make early retirement work, it’s important to understand the potential difficulties involved and to address them while there’s still time. In particular, if you want to retire early without ending up in a difficult situation, you’ll want to make sure that you have three key issues dealt with before making a decision you might regret later.
1. Figure out where your money will come from
2. Decide how you’ll bridge the healthcare gap
3. Come up with a strategy for staying active socially
Kiplinger: Worried You’re Never Going to Be Able to Retire? Click Here
Some people spend more time thinking about retirement than others, but most everyone has at least a few ideas about what their life will be like when they don’t have to work anymore.
Unfortunately for many, hoping and dreaming is about as far as they get in the planning process. They don’t know whether they can really achieve their goals because they haven’t taken the steps necessary to prepare for them.
If that sounds like you, and you’re anywhere close to the age you think you’d like to be when you retire, let me warn you: Your retirement reality could be far different from the lifestyle you’ve imagined. And if it is, it likely will be because you ignored one or more of these five basic threats:
Threat No. 1: Unclear plans.
Threat No. 2: Medical costs.
Threat No. 3: Investing too conservatively.
Threat No. 4: Not knowing how much risk is in your portfolio.
Threat No. 5: Inflation.
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