Tactics for an Early Retirement
March 2, 2022
March 2, 2022: Saving for retirement is a pressing issue for many young and middle-aged adults, but the average American has just $65,000 saved. While this is a great start, it’s hardly enough to sustain years of retirement without another source of income — and it’s definitely not enough to fund an early retirement. This prompts the questions — what are the strategies for early retirement, and what is a good age for early retirement? Contrary to popular belief, you don’t need to make six figures to retire early. You can follow these tips instead and hop on the fast track to the retired life.
Set Specific Goals for Yourself
Nobody ever retired early by having vague and inconsistent goals. On the contrary, people who retire early do so by setting clear and specific goals. The best way to do this is to identify clear objectives and put them down in writing. How old do you want to be when you retire? How much do you want to contribute annually to your retirement fund? How much do you want to spend annually in retirement? These are important questions, and your answers will offer some specific goals to start working towards.
Automate Your Retirement Savings
The most effective retirement strategy is one you don’t have to think about. If transferring funds into an IRA every month sounds difficult, do yourself a favor and automate the process. You can do this by calculating how much you want to save each month and setting up an automatic transfer from your bank account to your retirement account. You may be able to request that your employer automatically transfer a portion of your paycheck to a retirement account, too, so that you don’t need to do anything. If your employer doesn’t offer this service, you can set up the transfers to coincide with a direct deposit, which will have the same effect.
Minimize Your Living Expenses
What is the biggest obstacle standing between you and your retirement strategy? If you’re like most people, it’s a high cost of living. If you’re spending thousands of dollars each month on your apartment, car payment, auto insurance, and cell phone plan, you’ll probably struggle to set aside a substantial amount towards retirement. Find ways to cut down wherever you can. You can cut your rent in half by getting a roommate, for example, or save on cell phone costs by sharing a family plan.
Develop Multiple Income Streams
In addition to minimizing your living expenses, you can boost your retirement savings power by developing new streams of income. This is another important component of retirement planning, and multiple streams of income can boost your overall financial stability, too. Look into freelance jobs that fit your skillset or take on a flexible side gig.
About 1891 Financial Life
At 1891 Financial Life we don’t just sell policies, we offer possibilities. We pride ourselves on giving back to the communities that we serve by providing quality and comprehensive insurance solutions. We are a not-for-profit life insurance Society, which means the sales from these financial service products help fund member benefits along with social, educational, and volunteer programs designed to respond to community needs.
Our portfolio is extensive, ranging from various life insurance policies to our annuities to support your financial needs no matter what stage of life you’re in.