What is Early Retirement?
Written by Lee Wyatt (last updated August 23, 2013)
When asked what early retirement is, most people will give a fairly standard response. To most people this means that they can retire from working full time at an earlier age than the currently recommended 65 years of age. Usually this means being able to stop working between 10 and 20 years early. But how does one get to this position in life? It's not as difficult as many people would believe. That being said, it does require that you follow a few guidelines, and sticking to it.
- Be realistic. Just about everyone can retire early, but what not everyone can do is keep it that way. This means that most people have a hard time figuring out a way to keep their money going while they are retired. Doing so is possible, but does require that you come up with a fairly realistic goal. Keep in mind that when you are setting your retirement goal, you should set one that does require you to work at making you realize it. This way you will enjoy the fruits of your retirement all the more when you do experience them.
- Find a financial planner. Getting professional help is the surest way that you can make your dreams of early retirement a reality. These individuals have the training, tools, and most importantly the patience necessary to help you create a workable goal and a plan that will make that goal a reality. Be aware that financial planners will require that you pay them a fee in order to get their help. In addition, you also need to be prepared to follow the advice that you are given by these professionals.
- Set money aside. Whether you are actually able to hire a financial planner, you should be setting as much money aside as possible every month. This will help you to begin building a nest egg that you can later on use for investments, or other methods of retirement planning. There are two keys to creating a successful savings plan. The first is to find the highest possible interest rate from banks or credit unions that you possibly can. Historically, the highest interest rates have been found in credit unions. Secondly, when you do deposit money into your savings account, you need to leave it alone. Do not touch it, use it, or remove any of the money once it is in the account. This will allow as much interest as possible to accrue in the account.