For some people, working after 40 is unimaginable. For others, financial burdens make it impossible ever to retire. Any retirement plan should include a target year, or at least a target decade, for retirement. Many retirement benefits are not available before age 60, so anyone planning to retire in their 50s or earlier will need to plan carefully.
It’s also important to define what retirement means. Stepping out of the corporate world and into a low-stress job is a long-term goal for pursuing financial independence. According to Business Insider, this type of semi-retirement is called Barista FIRE because it often involves finding part-time work with health insurance and other benefits, often through a coffee shop. Other forms of semi-retirement may involve pursuing a financially rewarding hobby or working part-time in an RV park to exchange free lot rent.
Visit a Professional
Early retirement can involve many pitfalls, especially if tax-advantaged retirement accounts like 401ks, IRAs, or 403bs are involved. A professional retirement planner can offer expert advice at maximizing tax savings. Consumers should search for financial advisors with fiduciary responsibility. According to U.S. News, these advisors are legally required to offer the most beneficial advice to consumers rather than recommending high-fee or high-commission options that only benefit the advisor.
As old age approaches, many workers find the motivation to start saving, especially if early retirement is on the horizon. Small sacrifices during the working years can lead to large pay-offs through compound interest. Extra savings can be placed into a retirement account or invested in real estate or stocks. When combined with other approaches towards early retirements, such as seeking a less-stressful job or part-time employment, it’s even easier to save because workers will have fewer expenses and more free time.
It’s never too late to start planning for retirement, whether that means searching for a more enjoyable job or ways to trim the monthly budget.