Do you find yourself working late or even on weekends? Maybe your work is holding you back from taking that vacation you have always wanted. If that is the case for you then I bet the thought of retirement sounds really good. Being able to wake up and do as you wish; maybe a round of golf, some time at the gym, taking the family on a road trip or beach vacation. Doesn’t it sound attractive to retire early?
Most likely you aren’t able to retire yet because you aren’t ready financially. The earlier you start the journey of saving for retirement the more likely you will be able to retire early. Here are a few tips to help you retire early:
Save Early
This is a no brainer but time and time again people hold off. The longer your hold off saving the more you will need to save to make up the difference. It really does pay to start early.
Get the Advice of a Professional
Meeting with a financial advisor can really help the starting process. It is important to start early but also start correctly. Your financial advisor should be able to help you set up a financial savings plan for a targeted retirement date. They should also be able to help you set up your retirement account making sure to help get you the best account for your situation and wants. The two main accounts you need to know for retirement are IRA and 401k. There are also different types of IRA’s and 401ks. For example, SEP IRA, Roth IRA and Traditional IRA. You will also want to be aware of self directed IRAs and 401ks as they allow you to invest in non-traditional investments.
Opt in to Workplace Retirement Benefits
Many businesses offer retirement accounts as part of their benefits packages. Often employers will even match a certain percentage of funds contributed to those accounts by the employee. What it means for you, FREE MONEY. It should be a huge no brainer that this is one of the best things you can do for your retirement.
Cut Spending
Do you really need a new home, luxury car or boat? If they are things that truly you need or can stomach buying maybe try to cut back a bit by not getting the most expensive home, choose a car that isn’t too expensive but covers your needs. Simple strategies that can help you save more for retirement.
Take Advantages of Tax Benefits
There are plenty of tax benefits out there you just have to know where they are. Your financial advisor should be able to help you stay on track with getting the most out of tax benefits.
These are just a few tips that can help you get on track to save more money for your retirement in order to retire early. If you are looking for more retirement help talk to your tax accountant or read more: Now is a Good Time to Check Your Retirement, Is Your Retirement Plan Ready?
Author: Nick Barker