Planning for the Future: Can I Retire Early?
After years of early morning commutes and late nights at the office, you might start to wonder, "Can I retire early?" The decision to retire can be complicated, so we've compiled our best tips to assess your situation before you take the plunge. Not only are there major financial components to consider, but emotional factors as well. Read on to see whether early retirement is the right choice for you!
Have you calculated a retirement budget yet? This important step can shed light on your financial situation in a new way. We recommend setting up a budget and living off that amount for six whole months. This process will help you determine whether you need a little extra wiggle room or not. Don't forget to factor in inflation!
Are your children financially independent, or do they have a ways to go? If your children are still in school, you may want to double check your savings. It's a good idea to have emergency funds for both you and your kids. If you have any children with other special needs, it's important to factor these considerations into your budget as well.
Try to pay off your debts before thinking about early retirement. From mortgages to car loans, these hefty costs can eat into your retirement budget quickly. However, if your debts are all paid off, you'll have a lot more freedom. You can think about paying off immediate debts with a personal loan service from CashMax.
Start researching insurance now if you feel that early retirement is in your future. You may be able to get covered by your former employer, so get to know your policy. While Medicare is an option for those over 65, early retirees may not be able to enroll just yet.
Have you checked on your portfolio recently? Be sure that your finances are in good condition before making the leap to early retirement. A portfolio that is diversified, full of different tax-free and tax-deferred assets, may sustain you well into your golden years. But, you may need to save a bit more money than you expect. Fidelity Investments estimates that retirees should save 10 times their annual income by the age of 67, but those who retire earlier should plan to save extra money.