Many people have set up savings accounts, invested in stocks and dabbled in some financial planning to begin their retirement savings. However, sometime down the road, you’ll become more focused on when you can retire, and you might even speculate if you can retire in the way that Igor Cornelsen was able to do. Early retirement may sound like an impossibility, but if you’ve made a decent income most of your life and have started saving, you just might pull it off! These tips might give you some fresh ideas you hadn’t considered and help you in your quest for early retirement.
• Increase your savings. In all likelihood, you won’t incur as many work expenses as you spend now once you retire. Why not increase the amount you’re putting directly into savings?
• Take advantage of savings plans offered by your current employer or increase existing investments. Although many of the larger corporations may have different plans, most offer to match your contributions. You can hardly beat this kind of an offer when trying to save for early retirement.
• Now is the time to pull out the information you have stashed away about your employer’s pension plan. Most of us just glance at our pension plans quickly and don’t give it much weight when were younger. However, if you’re considering early retirement, it’s time to look at the numbers seriously and see how much money you can expect and at what age. Do the same with Social Security.
• If you haven’t started an Individual Retirement Account (IRA), now is the time to do so. Adults older than 50 can even deposit more than the standard of $5,500 per year. IRA’s are a great way to build up savings yearly.
• Consider downsizing your home to tap into home equity. Now that the kids are older and probably out on their own, you just don’t need a big house with a large mortgage. Why not downsize to a smaller home in anticipation of early retirement? If you’ve been in your current home for any length of time, you probably have a considerable amount of equity that you could invest in a 401 (k) plan, IRA’s or a savings account.
Take all your current and future retirement savings plans and list them in a spreadsheet to evaluate how you stand and where you could improve. Run some of these suggestions past your accountant or financial planner to get their thoughts for early retirement. With strong motivation and creative financial planning, you just might find yourself retired early!