Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Financial Plans to Retire Early - Jonah Engler

358 views

Published on

Jonah Engler educates his readers on how to be financially responsible in their youth in order to have a great future and retirement plan.

Published in: Education
  • Be the first to comment

  • Be the first to like this

Financial Plans to Retire Early - Jonah Engler

  1. 1. Setting a Financial Foundation to Retire Early If you’re dreaming of leaving the working world behind and retiring early, it’s important to start laying your financial foundation as soon as possible. Careful planning and saving can ensure that you’ll have the funds you need to leave your nine to five job well before you turn 60. Making
  2. 2. smart financial decisions now are the key to making your dreams come true in the future. Whether it’s choosing a smaller home, or opting for less expensive forms of entertainment, you need to start laying your financial foundation today if you expect to retire before your golden years. Save Aggressively As the economy recovers from the recession, interest rates remain at historic lows. Though returns on savings accounts are low due to the low interest rates, creating a large nest egg is still a vital part of retiring early. If you plan to retire in the near future — say in the next decade or so — you’ll need to look into relatively safe investment routes, which include bonds and savings accounts. Since high interest rates aren’t available to fund your retirement, you’ll need to work on living on less money now, and putting more into savings for later. While this principle is extremely difficult for cash-strapped 20 year olds, saving does get easier once large investments like college or a mortgage are paid off. Lump sum payments later in life are a great way to catch up on savings to ensure your early retirement plans stay on track. According to experts, saving just 15 percent of your income for eight to ten years is enough to retire by age 65. Make a Move if Needed While it’s true that the housing market has finally started to recover, home values alone won’t be enough to pad your net worth and make retirement a possibility. You need to look at your home with a critical eye and be realistic about what it can do for you. You may find that it makes more sense to sell while the market is strong, and move into a smaller home at a significant savings.
  3. 3. As a bonus, by choosing a smaller home now, you may not need to move again once you retire. Living in less space means fewer expenses for heating, cooling and maintenance. Smaller houses also cost less, and will leave more money in your retirement budget. If you can, move to a town with lower property taxes and a lower cost of living. Look into up and coming areas, as these places will provide plenty of opportunities for entertainment and growth in the future. Consider Working Part-Time Many early retirees continue working part time or as a consultant after they leave the nine to five world. This takes some of the pressure off of your finances, but still gives you the sense of freedom you get from being retired. If you’re having trouble finding a part time job, change your verbiage and start looking for projects or contract positions as these types of work typically have greater flexibility. Laying a strong financial foundation now and saving as much as possible can help make your dreams of early retirement a reality. No matter how old you are, it’s never too late to start aggressively planning for your future. Making small changes today can help make your golden years even more enjoyable.
  4. 4. Jonah Engler is a New York based Entrepreneur, a financial expert, and a stock broker.

×