By Ann Sullivan
More than one-third of Americans believe they’ll never be able to retire at all, let alone early, according to a Forbes report. If you’re among the pessimistic, don’t fret. While you may not be able to retire in your 30’s or 40’s, early retirement, or retirement itself, is possible. It will require planning, possible sacrifice in some areas, and certainly a disciplined strategy. There are some people who seem to beat the system and retire early with little effort. Most of us would like to know their secret. While it may not come easy, it’s certainly possible if you start where you are right now with the steps needed to achieve your goal.
1) Crunch Your Numbers
This means you need to calculate how much retirement income you will need to live on. It also means you will need to know what the best investment savings plans available are. Generally, experts advise that your total retirement savings should amount to 80% of your pre-retirement, income. Obviously, this is just a jumping off point and needs to be further scrutinized. You’ll need to have a plan to know how much you’ll need for living expenses. You’ll need to determine if, and at what point, you may downsize. If you own your home, and your mortgage is paid off, downsizing could potentially add a significant amount to your retirement fund. You’ll also need to factor in the cost of living of where you will be living and approximate what all your monthly expenses will be.
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