6 Great Ideas to Retire Early

If you truly want to retire early and enjoy an extra-long retirement, you’ve got some work to do now. Start planning now. There is a saying, “everyone does not plan to fail but fail to plan.”

1. Save, save, save
The reality is that if you want to shut off the BlackBerry at age 55 or 60, you\’re going to have to put a lot of money away – perhaps a third of your take-home pay or more, says Diane McCurdy of McCurdy Financial Planning in Bakersfield, Calif.

Key stat: 38% of people retire earlier than planned.

2. Live less than large
Saving has to be your first priority, says Debra Morrison of Capital Financial in Roseland, N.J. So before you do anything else, stash that money away. Then budget around the amount you have left, even if it means buying a smaller house or purchasing a pre-owned car instead of a new one.

Key stat: The typical male retires at 63. The typical female retires at 62.

3. Be aggressive
You can\’t afford to get conservative with your portfolio. Allocate 75% of your money to stocks until you near retirement, then start tilting toward bonds. Yes, the market could tank and postpone your plans, but you\’ve got no chance if you invest too cautiously.

Key stat: 33% of workers are in traditional pension plans, down from 63% in 1988.

4. Bank your extra income
If you get a raise, save it instead of spending it. Tuck away any windfall you receive, such as a bonus or inheritance. And to really turbocharge your savings, consider moonlighting and setting aside the additional money.

Key stat: 33% of big employers offer retiree health care, down from 66% in 1988.

5. Design a post-retirement career
Part-time work doing something that you really enjoy can lead to a more fulfilling retirement – and may add just enough income to make early retirement a reality. For ideas, click on aarp.org/money/careers.

6. Start a Home Based Business (Affiliate / Network Marketing)
Experts like Paul Zane, Robert Kiyosaki, Donald Trump, etc have recommended you to consider this option.


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