How to Retire Early?
Whether you’re a Gen X seeing retirement in a not-so-distant horizon or are just one of the many millennials dreaming of retiring young, here are the steps you need to take to fulfil this dream.
Save and Invest
Before even dreaming about cruises and sleeping ins, it’s important to prioritise saving above anything else. As you save, not only you are building cushion for emergency needs, but you are basically raising more cash for investments that are supposed to make you rich one day and support your early retirement.
Protect Your Investments
It is also highly important to protect the investments that you’ve worked so hard to build, especially if you still have dependents who will suffer financially if you were gone. Getting at least a term insurance will protect your dependents until the time that they are ready to survive without your financial support.
Maximise Your Retirement Contributions
Of course, retirement can be very expensive, and you need to ensure that by the time you give up on work, you’d have stashed enough to support you all the way until you’re old and grey. Especially if you’re planning to retire early, consider that you might live longer that you’d expected, and that as you grow old, there’ll be no chance for you to go back to work if you wanted.
Prepare a Solid Retirement Plan
Lastly, it is important to plan your retirement decades before it even comes. If you’re planning to retire in your 40’s or 50’s it is particularly crucial to think about how you envision your lifestyle to be. It is supposed to be filled with trips overseas, playing golf, and other expensive hobbies? Or do you find that you might not have much to do when you retire? It helps to plan if you want to raise more cash, or accept part time work so as not to be bored and broke.