Early retirement is a dream of many Americans and people worldwide. However, in today’s economy planning for retirement itself can be extremely difficult, let alone planning for early retirement. About 20 years ago about 50% of all American workers planned to retire before they turned 65, but today that percentage has dropped to about 23%.
If you are still 10-20 years away from your desired retirement age, there are still a few things you can do to make it easier to retire on your terms.
1. Invest: Start putting money aside as soon as you have a sufficient cash flow. This means you are generating enough money to cover all your expenses and debts and have enough to invest in a tax-efficient retirement plans.
2. Have Financial Plan and Reevaluate it Often: Proper planning needs to take into account tax planning, investments, health insurance, etc. Make sure to spends some time with an independent financial advisor and consistently throughout your career to manage and assess your risks and opportunities.
3. Get the Right Health Care Plan Today: Do not wait to see what Medicare will and will not cover when you retire or you might spend all your savings on medical bills. Make sure to plan now for long term health care and understand all your options now.
4. Build a Business as an Asset: If you are a business owner, look for ways to grow your business as a sustainable and attractive asset so that it is profitable even when you are not there, causing it to retain its appeal to potential buyers.
5. Plan an Exit Strategy Now: If your business is your largest asset, then deciding what happens to it can impact your retirement income. Even if you are just starting out, make sure to address what you plan to do with your business when you retire.
6. Determine if You Want to Keep Working: Some people can’t imagine retiring completely as they love working. If you know you will want to work or need some additional income after you retire then plan now for post-retirement career options. You can look for part-time or freelance work, but plan now if this is something you want to pursue.
Overall, it is never too early to start planning for retirement. If you start planning now you will be more likely to set yourself up for the possibility of early retirement.