Retiring early isn’t impossible. With careful planning and organization, it is possible to retire in your 50s or early 60s, sometimes sooner. The key to making this possible is to put a plan in place right now. Take into consideration a few ways on how to retire early.
Assess Risks Carefully
One of the most important steps to building a solid retirement is to focus on risk. When you are younger with more time to plan, you have the opportunity to be more aggressive. Working with a financial advisor, determine how much risk is right for you. Then, invest in those areas.
Work to Grow Income
To be able to put away more money for retirement through investments, you need to have a solid income. This may mean expanding your skills, or it could mean putting in a few extra hours a week. Consider the benefits of investing in a secondary service, such as consulting.
Never Grow Debt
Debt costs far too much money – money that could be adding to your retirement. If you hope to retire early, a key component of this is to avoid building debt. Remember, buying something on credit for $100 and not paying for it over a year means that item has cost you $125. Instead, live within your means and use cash for purchases.
Reduce Your Expenses
It is also important to reduce your expenses if they are high. Any extra money you have – such as the money you spend on lavish purchases or eating out – is money that could be going towards your retirement and those dream vacations later.
Know What You Need to Retire
Work with your financial advisor to learn how much you need to have to retire early. There are many factors that go into this including deciding what type of lifestyle you plan to live, your expected lifespan, and any costs you need to plan for long term. Take the time to invest carefully to achieve those goals.
Contact Us to Set Up Your Early Retirement Plan
At Sterling Financial, our goal is to help you achieve any of your goals. That includes helping you to retire early. Contact us today to set up a consultation to discuss your early retirement.