Has the idea of an early retirement crossed your mind? It can be done, with the right amount of sacrifice and planning.
Here are some of the things people who retire early do:
Live on less
Become frugal, downgrade your lifestyle, and live below your means. All the money you don’t spend on unnecessary square footage, extrs cars, new outfits, or the cable bill can be put into investments or savings to make an early retirement a real possibility. It takes sacrifice but making it to retirement early is a goal that many people may find is worth that sacrifice. If you continue to stay frugal into retirement, you should also be able to stretch your savings further.
Make wise investments
The Motley Fool suggests going heavy on stocks early on to give yourself a chance to ride out any market fluctuations. They suggest stocks over bonds because, while riskier, that’s where the probable payout is. They point out that an “8% average return over 30 years could turn $288,000 into well over $1 million.” That’s a potentially pretty good chunk of change to help make retirement a little easier.
Save aggressively and early
Take advantage of compounding interest by starting your savings early and giving your money a more extended amount of time to grow. Follow the live on less rule to put away more money for the future.
Consider working in retirement
While it doesn’t have to be full-time employment, continuing to work in some capacity – whether as a consultant, business owner, or in an area of interest to you – helps to keep the mind and body active while continuing to produce a stream of income. Semi-retirement is an option for many. It can function as a transitional stage and offer many of the advantages of full-time retirement without the wait for the full amount of years to get there.
We can Help! Our local advisors can help your family make a confident decision about senior living.