All of us have thought about retiring early at some time in our lives. That said, it can be a challenge to figure out how you will go about doing it. You can do research that will tell you what the best steps are to take when thinking about your big retirement move. Consider some of these things when you are contemplating retiring at an age that isn’t expected by many.
You should make sure you are not carrying a heavy load of debt when you retire. This can screw things up because you have given up your income and won’t be able to pay any bills. Your goal is to retire when you are debt free and have something to live on. Debt drags us all down and if we don’t handle it immediately before retiring, we give ourselves headaches. Be proactive in your progress and pay down as many bills as possible. You shouldn’t even consider retiring at all until all balances are at a zero. You can learn more here.
You want to have something to live on when you stop getting a paycheck. Take the time to sit down and think about the kind of lifestyle you want to have in retirement. Do you want to travel, start something new or start an LLC? This will take money and time. A nest egg that can support these endeavors is your smartest move. Make a budget and calculate your biggest necessities of where money will come into play. This gives you an idea of what you will be left with during your retirement period. Many people fail at retirement and find themselves going right back into the workforce looking for a new job at a grocery store. It can be embarrassing and humiliating if you miscalculate what exactly you will need to live on. You can find some good info from a company like AARP.
Your investment portfolio should be in line with your goals and risk tolerance. The market tends to shift, and it may catch you off guard. All your investment portfolios need to focus on the long term and be as diverse as possible. No one wants to count on an investment return that simply doesn’t show up when you’ve decided to leave your company. The discovery that it is not moving to your satisfaction can be a hint you need to stay put for a while. A group like Bone Fide Wealth, LLC can provide answers to your questions.
Health Care and Insurance
You never know that you might end up getting seriously sick after retiring early. We all are human, and ailments can sneak up on us all. Find out how long your insurance will last and if you are eligible for something else. Get a good understanding of the whole stages of COBRA. You typically get about 18 months of coverage from your employer. You may also want to look at long-term care insurance, but make sure to have a good size of assets that can handle it.