Early retirement

Now days pensions are not likely to come with your job, however if you do have one and you are not too far off from becoming vesting (like me) than keeping your current job maybe a good idea. For example, I need to put in five years at my current position to become vested. I have 2.5 years because I had to wait 6 months in order to start my pension called Public employee retirement system. They changed the name and have restricted it to tier three. So I imagine in the future one will not retire early with this structure.
In order to retire with a lot of money it’s a good idea to invest monthly through dollar-cost averaging. Also invest a good portion of your salary to stocks. Some advice I was given is to not use life insurance as a retirement strategy.
So at what age do you want to retire?
If you are in your early sixties and want to claim retirement at age 62 (which is the earliest you can) than you are not alone. Nearly 58% take social security at the age of 62. My father did because he worked a manual labor job and just could not physically do the work anymore. Close to 76% of Americans claim social security before they turn 65 years of age. I’m in my thirties and I have been told (rumors of course) that social security will not be around by the time I become 65 years old. Every year you should get a statement showing the projections of how much income you will get from social security by the age you will retire.
My advice to retire earlier than 65 years of age is to invest aggressively into stocks. I recently watched some Warren Buffet videos on YouTube and he recommends only investing in 5 or 6 stocks for the average investor. The advice to diversify is bad. So, if one invest for say 30 years with compounded interest than building at least 1 million dollars should be a realistic goal. Most experts suggest a retiree to have 30 years of money of assets saved by retirement age. People are living longer and longer and the average age for a man to live is 73 years and women 80 years.

Share This

Write a comment