Before deciding when to retire, learn all you can first. Many decisions such as pension options and when to collect social security are irreversible. The amount you can collect at age 59 is different than that of age 62 or 67.
There are many ways to retire at any age. Whether your plan is to target retirement funds at an early age and retire early or wait until the government mandated age depends on your retirement wishes.
Do you want to retire near family and friends? Or are you willing to make your golden years an adventure and retire overseas? This can greatly increase your buying power due to lower medical and insurance costs abroad.
Either way, your wishes and desires should play a central role in your decision-making.
Plan for Retirement Bliss…
According to government regulations, the earliest you can pull money out of your 401k or IRA is 59 ½.
And depending on when you were born, you may have to wait until 67 or 70 to collect full social security benefits.
Access to your 401k, social security and pension will depend on your age.
Target Retirement Funds
If retiring early is your goal, then having an income until your social security and 401k or IRA kicks in is essential. It is important to write down what your expected income and expenses will be no matter when you plan to retire.
One person’s expenses can be quite different from another…so make sure to jot everything down.
Once you have these numbers on paper, ask yourself if there is enough money to live comfortably. Remember to include expenses for car repairs and recreation. If your expenses are larger than your retirement income, you may have to work a few more years and increase your savings.
Deciding when to retire can be a difficult process without proper planning. Take some time to research all your options…not just the typical ones. Retiring overseas or sharing your home with renters are just a few of your choices.
Yes, you can say goodbye to the “9 to 5” earlier than the mandated age. It takes a bit of discipline and planning but retiring early is very doable. There are certain steps to making this a reality. Set your mind to your goal and you are well on your way.
If you want to retire prior to the government established age requirements then saving for retirement must become second nature. Follow these steps to have enough money stashed away for that time. The following strategies can help make the decision of when to retire your choice.
How To Retire on Your Timeline
Where To Retire
In choosing a retirement location narrow it down to your top ten. Create detailed budgets. And remember to research certain basics like climate and health care. Your choice of location will make a huge impact on your expenses.
Cheapest Places to Retire
To find the cheapest places to retire search in smaller towns. The closer you get to a large metropolis, the higher the prices. Certain spots such as college towns offer great medical facilities and affordable entertainment.
What are Your Retirement Wishes?
Is it really possible to stop working earlier? What do you want to do once you are no longer tied to the workplace? Is it volunteering at a shelter or children's center? Or do you dream of investing in a new business that feeds your passion? Perhaps backpacking through Europe is your goal.
If you are serious about any of the above, you will need to accelerate your savings plan and decelerate your expenses. Find out how to make it happen by setting up an early retirement plan and sticking to it. You will be pleasantly surprised how easily you can achieve your goals once you make up your mind to do so.
If your decision of when to retire is earlier than the mandated age, you are going to need enough funds to pay for living expenses. Remember...You can’t count on your tax deferred retirement funds yet.
A part-time job will help finance retirement. And leave you with plenty of free time. Keep investing and refrain from pulling money out of your retirement accounts. You will pay a stiff penalty if you do.
If you are in debt, you will have to take care of those expenses first and foremost. Retire Smart by getting out from under the spiral of debt before giving up your day job. Learn simple strategies you can follow for a secure retirement.
Calculate how much you spend
Do this daily, weekly, and monthly. Write everything down. Determine what you need for food, electricity, car payments, gas, etc. Make a list of all your necessities.
Jot down every penny that leaves your pocket...
Even if it’s a bag of peanuts. Carry a pad with you so you avoid forgetting anything.
Keep this up for two months. It is definitely an eye opener to see how much money you are actually throwing away. Start today if you want to make when to retire your choice.
If you dream about retiring early take an honest look at where your hard earned money goes. Then take the steps to achieve your goals by following these guidelines.
Once you have a number for monthly expenses, multiply that by 3. This is what you should have set aside in case you're unable to work for several months.
Without it, an unexpected accident can wipe out your savings and put you in debt. And with it, your choice of when to retire.
Retirement Target Date
Set a goal to retire in 10, 20 or 30 years. How much you save and invest during the preceding years will determine if your retirement date is sooner or later.
Sock away 40%-60%
Save this amount of your income and your target retirement date
gets rapidly closer. Believe it or not, this can be done by incorporating certain techniques. Invest the money and stick with frugal living to minimize your expenses. Then watch how quickly your assets grow.
That way "When to Retire" will be a decision you make. The "how" is just a step-by-step process.
You can retire long before the predetermined age of 62 or 67. And live off your investments until retirement age.
Then subsidize the remainder of your retirement by collecting from your retirement accounts and Social Security.
By taking control of your spending and creating target retirement funds you and you alone decide when to retire.
"A year from now, you'll wish you had started today."
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