Planning your early retirement

Start planning for your early retirement as early as possible and reap great rewards when you hit your golden years.

08:42 11 July 2013

A lot of people who have been working for 10 to 20 years may be dreaming about retiring early. The thought of not having to go to work everyday and just doing what they really love the most, perhaps like traveling across the country or around the world, excites them.

The key to turn this dream into reality is proper planning.

The first step is to figure out how much you will need per year once you retire early. When doing this, you will need to figure out the kind of lifestyle that you would like to have. Do you plan to travel?

You also need to consider health care costs where applicable. As you may already know, people in their 60’s or older usually spend more money on medicine and hospital bills.

Once you’ve gotten a ballpark figure of what you’re going to need when you hit retirement, the next step is to figure out how to save that money.

Start putting money in your retirement fund as soon as possible. To boost your saving’s potential, put your money where it will grow exponentially. Depending on your risk tolerance, you can choose mutual funds, bonds, or the stock market.