Want to Retire Early?

3 things you MUST do

So, you want to retire early? What is your dream? Perhaps nice cold beers next to the swimming pool, somewhere tropical and exotic?

Or, exploring where few have gone before. Striding through the mountains, alone at last to experience all the beauty the world can offer.

Nice dreams, and sadly for most that’s all they will ever be.

But, some do convert that dream into reality? How do they do it?The simple answer is they do what the opposite of the vast majority, and today you will discover their secrets.

Read on.

We will start with some extracts of information from the British Government.

Make up your own mind whether they point you towards early retirement, or not.

* In 2050, a man who retires at 65 can expect to live until 90 and a woman 93. Fantastic.

* Next, let’s look back 35 years. Since the 1980’s, there are double the number of women working over State Pension Age. Men working over 65 have increased by 60% . Not so good.

* The average retirement fund in 2010 was around £25,000 (GBP). This might buy you a pension of £1,000 per annum. Also not good, in fact a HUGE problem.

This tells us is most people are living longer, working well past their retirement dates, and have only saved a small amount for their pension.

But you want to be different? You want to retire early? But not just retire early — retire early with a decent pension?

That’s great, it’s possible and here’s how.

1. Have a Plan and Budget

Do you know exactly where your money is going? If not, start identifying and making a note of two things. Your income and, more importantly, how you are spending it. You may find that too much is going out, and not enough in. That’s fairly normal, and why most finish up with next to nothing in retirement.

To retire early you must save, and you must decide how much you will save. To do this, decide whether today’s purchases are moving you towards, or away from, retiring early.

2. Start Saving Today

Today’s budget is your starting point to early retirement. The next big step is to start saving today. The temptation is always to put it off until tomorrow. Let’s get our holidays out of the way. Then we have Christmas. But the day to start saving never comes.

Start now, even if it’s small. You can, and must, increase as time goes by. Why? It’s because of the “5 Year Rule,” which says:

Your first 5 years are crucial, no matter how long you have to retirement.

Remember the guys retiring now with pension pots of £25,000? They may have saved for 20 or 30 years but their first 5 years would have bought them 20% to 30% of their eventual pension. That’s the 5 year rule. Nothing magic, only compound interest at work. Take advantage and start today.

3. Invest Wisely

Good, you have an amount to start now. The next question is where to save?

The stock market can produce good returns but it can be volatile. The alternative is investments that give a regular interest rate. Often your capital is safe but the returns are limited.

In the end, it is your retirement and your decision. But to ensure you retire early and fulfill those dreams, your planning, and saving, should start now.

Go on. Do it.

The clock is ticking!