How to retire early
Are you tired of changing your office? Does your jerk boss irritate you? Do you find your job disgusting? If he finds himself nodding vigorously up and down at all of these questions, then perhaps the time has come for him to take control of his life and retire early. To retire early, he doesn’t have to wait for good fortune or hang around for a seductive purchase offer. All he has to do is put together a solid early retirement plan. Here are some tips to help you create a foolproof early retirement plan.
Manage your expenses
Studies indicate that 38 percent of people retire earlier than planned. If you also intend to retire early, saving should be your top priority. Try to save up to a third of your annual income. For this you would have to manage your expenses strictly. Here are twelve things you can do to build up a stack of money fast:
o Reduce your credit card bills
o Rent a smaller house
or buy a used car
o Reduce the size of your mobile bills
o Stop frequenting hotels, restaurants, multiplexes and shopping malls
or Shop at ‘One Dollar Store’
o Opt for a generic clothing line
o Look for scholarships to support your child’s studies
o Find out ways and means to obtain tax benefits
o Motivate your unemployed spouse to start working
o Take a part-time job to earn extra money
o Fiercely guard any bonus or inheritance you receive
invest wisely
You cannot plan to retire early simply by accumulating capital drop by drop. You need to discover methods to rapidly multiply your accumulated wealth. Look for investment schemes that are not only safe, but also provide good results quickly. One option may be to invest in real estate. Thousands of people have become rich overnight from their real estate investments. Real estate is something whose demand increases with each passing day, but the quantity does not. Therefore, you can also strike gold with your real estate investment. Tax-sheltered vehicles like the Individual Retirement Account (IRA) and the employer-sponsored retirement plan, 401(k) are also safe ways to proliferate accumulated wealth. Stocks, stocks, bonds, and mutual funds are other options for making big profits in a short amount of time.
You can select any of the investment plans above. However, don’t forget to check the fees and commissions involved. Often, crafty brokers spread a significant portion of your investment returns in their fees or commissions. Please read the fine print of the agreement carefully. The best way to avoid all this kind of hassle is to learn the tricks of the trade yourself. You can easily add up to 2 percent to your investment profit by managing your funds yourself.
Plan your career after retirement
As you solidify your financial foundation, you need to start thinking about your post-retirement career. After leading a busy lifestyle, it’s essential that you grab something after retirement that will keep you busy and help you earn a few bucks. Turning a hobby into a profession is a good idea. For example, if you like to write, you can start a freelance writing career. If money, stocks, and stocks intrigue you, you can become a part-time financial advisor. You can even start your own business. One thing to keep in mind is that after retirement you should always do something you really enjoy. Don’t indulge in things that forced you to retire early.
There are various reasons like poor health, lack of job challenges, peer pressure, financial status, need to fulfill a childhood dream, marital compulsions etc. that may force you to retire early. No matter what the reason, it is always beneficial to weigh the pros and cons of early retirement fairly. Talk openly with your spouse, children, friends, and relatives. People close to you know your state of mind and will help you make the right choice. Remember, your decision will profoundly affect the life of your family. Therefore, try to keep the emotional quotient out during the decision-making process.
After considering all aspects of early retirement, if you feel strongly that you should also retire early, the first thing you should do is plan for your retirement. The helpful tips above will certainly help you create a smart early retirement plan and live a good life forever.