Business & Finance Investing & Financial Markets

Retire Early

So you want to retire early.
Sounds like a great idea to me.
Here is a plan to get you started.
First, decide how much money you will need to retire comfortably.
Make sure that your nest egg will cover your normal expenses, the cost of health insurance, and money for travel, hobbies, dues, charitable donations, and even continued savings.
A good safe withdrawal rate from your funds is five percent, but of course, a lower withdrawal rate would be better because you would be less likely to outlive your funds.
Second, maximize your income.
Choose a great career and work all you can.
Earn an excellent reputation in your company as the "go to guy" (or "go to girl").
Be indispensable at work.
Being self employed would probably pay a lot more than working for someone else if your venture is successful.
Pal around with people who keep you positive and motivated.
A bad peer group could keep you from achieving your dream of retiring early.
Third, keep your expenses as low as possible.
Maintain a budget.
Keep your investment expenses from being higher than necessary.
Buying and holding quality stocks through a discount brokerage is a very low cost way to go.
Buy a home you can truly afford.
Going overboard on a home can wipe you out.
Sacrifice short term pleasure and status and invest for your early exit from the rat race.
As W.
Clement Stone once said, "Of you cannot save money, the seeds of greatness are not in you.
" Fourth, make excellent investments.
Take an investments course and read classic investments text.
Reading the Wall Street Journal would not hurt.
Find an excellent broker or do it yourself.
If you are a reasonably intelligent human being, you can study and experiment and make good investments on your own.
There are a lot of good quality web sites and advisors who can help you.
The Buyback Letter and Value Line, for example, are great services.
Look into them.
Remember to include stocks and/or mutual funds, and/or rental real estate in your portfolio.
If you do not feel you are ready for these types of investments, you must start studying today.
Fifth, keep learning and growing, continue, even after you have retired.
Read and listen to your sacred texts, like The Bible.
Listen to Tony Robbins and other personal development speakers.
Learn about things you may not know about, like art or health or psychology or history or a new sport.
Sixth, take care of your health.
What good would it do to drop dead before or right after you quit working? You could be the richest person in the graveyard is about it.
Maintain proper weight and be physically active.
Taking care of your physical health will keep your medical expenses lower, which matters a lot with rising health insurance costs.


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