Ask five different people what early retirement means to them, and you’ll get five different answers. Regardless of what it means to you, here are three steps to plan for an early retirement.
Define Early Retirement In Terms Of Age
To some, early retirement means age 45; to others, age 60.The first step in planning for early retirement is picking a target age or date.
Consider the following:
- Life expectancy
- When you can and should begin taking social security.
- How you will cover the cost of health insurance until you reach age 65?
- What you will do with your time? Will your hobbies cost you money, or make you money.
Define Early Retirement In Terms Of Income Needs
Some define early retirement as the day they no longer have to work in their current profession or career. For others, retirement means they have reached a point where they will never work for money again. If your definition is the latter, you will need to save more than those who plan on earning money in some other way.
Make an Investment Plan That Can Deliver The Income You Need
Once you have calculated the amount of income you will need, spend time researching the various ways you can structure savings and investments so they produce consistent and reliable retirement income.
Take the time to do careful research, and don’t hesitate to seek qualified professional help.
For more information on this and other financial topics, or for a no cost financial consultation contact Brad Kamman at 205-397-2450 or toll free at 1-800-641-3870.
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