early retirement

Best Money Tips: The Downsides to Early Retirement

Amy Lu — Mon, 18 Jun 2018 08:30:27 +0000

Welcome to Wise Bread's Best Money Tips Roundup! Today we found articles on the downsides to early retirement, clever Alexa commands you will use over and over again, and creative ways to save money this summer.

5 Things That Could Wreck an Early Retirement

Denise Hill — Wed, 30 May 2018 09:00:24 +0000

The Financial Independence/Retire Early (FIRE) movement is hot right now. People working toward FIRE are hoping to retire in their 40s and, in some cases, even their 30s. And while the focus of FIRE is to produce financial freedom and not ascribe to a strict definition of the term "retired," it is a tantalizing goal many find worth chasing.

However, if not properly planned, early retirement can be more of a burden than freedom. The earlier you retire, the longer your money has to last. Your life mitigation plan also has to be more solid and thorough than those who retire at the standard age. Below are some things that could derail your finances if you retire early. (See also: 8 Things Millennials Can Do Right Now for an Early Retirement)

1. Health crisis

Proper diet, adequate amounts of exercise, and regular doctor visits are the trifecta of good health. However, genetics and fate are the dynamic duo that can override your diligent efforts of maintaining good health. Failing to properly plan for a health crisis leaves the door gaping open for financial hardship during early retirement.

According to a Fidelity analysis, the average couple retiring at traditional retirement age (65) can expect to spend $275,000 on health care during their retirement years. If you retire at 45, you have an additional 20 years' worth of potential expenses for which to plan. You have to factor this additional cost into your overall retirement number.

Financial experts strongly advise that you keep health insurance coverage during retirement to help offset the cost of a serious illness or injury. There are coverage options available through private companies — which can be pricey. You should also explore Affordable Care Act (ACA) special coverage options. The ACA provides income-based premium subsidies which are based on your modified adjusted gross income during retirement. In addition to keeping health insurance, you must also ensure that you've adequately accounted for out of pocket health costs when determining how much you need during retirement.

2. Failing to live on a budget

One of the biggest myths many retirees fall prey to is the notion that you'll spend less money during retirement. The truth is it is rare that your cost of living will decrease as dramatically as you think it might. This is why living by a strict budget is financial life or death for the early retiree. (See also: 9 Unexpected Expenses for Retirees — And How to Manage Them)

Getting older also comes with hidden expenses. You spend more time engaging in leisurely activities — which usually comes with a cost. You outsource chores as you age. And of course, health care expenses increase with age. Budgeting and tracking expenses isn't just for working folks. Living frugally, budgeting, and strategic spending are habits that should follow you to your grave.

If you find that you are burning through your retirement funds quicker than expected, make sure you readjust immediately. This means you may have to scale back or even cancel some of the leisure activities and find ways to cut day-to-day spending. If an unexpected expense arises which consumes a large chunk of your funds, you may have to consider getting a side gig, working part-time, or rejoining the work force for a few years to replace the loss. You must proactively budget and track your funds to ensure they last. (See also: How Much Can You Afford to Spend in Retirement?)

3. Inflation

Piggybacking on point two is failure to properly plan for and adjust for inflation. As you age, your dollar loses its elasticity. Your fixed cost of living expenses are slowly going to creep up over time. Retiring early means you have to deal with that creep a lot longer.

Your retirement budget and planning should include a yearly (or at least every two years) cost of living increase. Think about the things you do regularly and plan to spend more on those things as time goes on. Your medication, transportation, food, and clothing are going to cost more and failing to adjust your budget to accommodate the increase can prove to be a costly mistake long-term. (See also: 4 Ways to Protect Your Retirement From Inflation)

4. Becoming a caregiver

Boomerang children, caring for the grands, and providing for aging parents are some of the unexpected ways you can find yourself burning through your retirement funds. One of the primary purposes for chasing financial freedom — at least for me — is to be in a position to help others. Helping becomes a problem when a person's need exceeds your capacity.

This is even more true for those retiring early. You really have to be careful to ensure that your money lasts past your life span. If you have children and grandchildren, try to plan for things you know you want to assist with. Do you want to give your children a down payment on their first home? Pay for the grandkids to attend private school or even college? Provide long term-care for aging parents? Whatever you think you may want to do, set money aside for that purpose and don't touch it.

It is strongly advisable that you establish a "friends and family fund." This is money that you set aside specifically to help a loved one out of a financial jam. It can pay for health care, funeral expenses, the added cost of caring for your kids, grandkids, parents, or all of them. Most importantly, it can help offset the heightened cost of living that occurs when loved ones come to live with you for an extended period of time. It's better to live on less in order to set money aside for "just in case" in lieu of trying to adjust when life happens. (See also: How to Save for Retirement While Caring for Kids and Parents)

5. Incurring debt after retiring

One of the biggest mistakes you can make is to carry debt into retirement. Retiring with no debt can be a bit tougher when you retire early, but it should be your goal. You don't want to waste your precious resources making years of interest payments. You should aggressively work to eliminate all debt before retiring. You could even opt for a partial retirement and work part-time or get a side gig just to pay off your debt. (See also: 6 Great Retirement Jobs)

It's also ill-advised to incur new debt while retired. If you need to make home improvements, buy another car, or make another major purchase, try to do it with cash — and even then, proceed with caution. If you must use credit for any reason, make a deal with yourself to find some other means to finance the purchase. That may mean going back to work temporarily until the debt is paid.

You also should avoid taking on debt to help friends and family. Steer clear of co-signing — always — but especially during retirement when funds are limited. Helping friends and family members is one thing, but using debt to do it is a bad idea. If you can't afford to give it, you can't afford to lend it. In other words, if you need to be paid back, you really can't afford to loan the money. Consider gifting a portion of the money to the asker in lieu of lending them the whole amount. That way, they are not indebted to you, you haven't financially endangered yourself, and you provide assistance while simultaneously preserving the relationship. (See also: What to Do If You're Retiring With Debt)

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This article is from Denise Hill of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

4 False Assumptions That Could Threaten Your Retirement Years

Matt Bell — Wed, 10 Jan 2018 09:00:08 +0000

I'm sure it isn't news to you that many people are not saving enough for retirement. For some, there just doesn't seem to be enough money to pay the bills and save. However, for others, faulty assumptions may be to blame.

Consider the statements below. Have you ever thought or said such things? If so, they might be keeping you from saving as much as you should for your later years.

1. "I'll be able to earn income as long as I'd like to."

A growing number of today's workers are planning to keep working past the typical retirement age. However, their plans don't square with the experiences of today's actual retirees.

According to the latest Retirement Confidence Survey from the Employee Benefit Research Institute (EBRI), 38 percent of today's workers expect to retire at age 70 or later, or never retire. How does that compare with today's retirees? Just 4 percent actually left the workforce that late.

Among retirees who left the workforce earlier than planned, EBRI says many did so "because of a hardship, such as a health problem or disability." Others retired early because of "changes at their company."

This same expectation/reality gap can be seen in the number of workers who plan to work for pay after they retire. Some 79 percent say that's their intention whereas just 29 percent of current retirees have actually worked for pay.

What should you do? Instead of counting on paid work in your later years, plan financially to retire at the typical retirement age. At the same time, keep your vocational skills current so you could keep working if you'd like to and are able to.

2. "Inflation will always be low."

If you want to do a checkup on your retirement savings, you may be tempted to take your total nest egg and divide it by the number of years you think you might live. This will give you an idea of how much money you'll have each year to cover your annual costs. When you have enough to get by, you might assume you're "set."

There's just one problem with that approach, which people often forget about: inflation. While the cost of living has only been increasing at a relatively moderate rate in recent years, even a 2 percent rise means $500 worth of groceries today will cost about $600 in 10 years. And who knows how long inflation will stay low?

That's why keeping your entire nest egg in an account that today pays a fraction of 1 percent is ill advised. Given our longer life spans, it's generally best to invest a portion of your nest egg in stocks. (See also: 10 Signs You Aren't Saving Enough for Retirement)

3. "I'll always be healthy."

When you're in good health, it's hard to imagine ever becoming seriously ill. Heart attacks, strokes, cancer, and dementia only happen to other people, right?

That assumption may explain why so many people are ignoring resources that could be used to help pay health care expenses later in life. EBRI found that only 13 percent of account holders contributed the full allowable annual amount to their health savings account in 2016. Meanwhile, according to The LTC Financing Strategy Group, only 16 percent of eligible people over age 65 have a long-term care insurance (LTCI) policy. Cost certainly is a factor in these decisions, but an assumption of continued good health may play a role as well.

What to do? Face the facts. You probably won't always be as healthy as you are today. According to the National Association of Insurance Commissioners, over half the people turning 65 are expected to need long-term care at some point in their remaining years.

If you are using a health savings account in conjunction with a high-deductible health insurance policy, consider boosting your contributions with the intent to carry a large balance into retirement. (See also: How an HSA Could Help Your Retirement)

Also, think about your family history. Did your parents or grandparents have any significant health issues at a relatively young age? If you experience a similar problem, how would you handle the cost? Especially if there's a history of dementia in your family, consider picking up some long-term care insurance. (See also: Is Long Term Care Insurance Worth It?)

4. "If I ever do become seriously ill, my kids will be there for me."

What if you do experience a debilitating illness — one that leaves you needing help with some of the activities of daily living? If you're like most people, you'll probably prefer to avoid living in a nursing home, but what other options would you have?

Think about your children. How old will they be when you are 80 or 90? Will they be available, or will they be busy building their careers, raising their own kids, or both? Are they likely to live near you?

Counting on your adult kids to help care for you may be counting on too much. Here again, a long-term care policy may be in order. Most of today's LTCI policies will help cover the cost of a nursing home and in-home care.

Among the many threats to a financially secure retirement, the difficulty many of us have envisioning the circumstances we'll face in the future is one of the most significant. It can lead to faulty assumptions that, in turn, can leave us unprepared for our later years. The good news is, if we realize early enough that we hold these false assumptions, we can change them and correct course so that we are financially secure in our later years.

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This article is from Matt Bell of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

How to Plan for a Forced Early Retirement

Denise Hill — Mon, 11 Dec 2017 09:30:10 +0000

Every working adult dreams of the day they can retire and take it easy. But for some, retirement is forced upon them sooner than expected. When this happens, a world of financial stress can follow.

LIMRA Secure Retirement Institute found that 51 percent of workers retire between ages 61 and 65, while 18 percent retire even earlier than that. It may not have been in your plans to retire so soon, but life doesn't always go accordingly — things like declining health or caregiving for a loved one can force people to leave the workforce earlier than they anticipated.

Retirement experts advise that in the face of this new trend, your retirement plan should include early retirement options and safeguards. Below are six things you can begin doing now to prepare for an unexpected early retirement.

1. Start planning early

Retiring just five years early — at age 60 versus 65 — can significantly impact the amount of income you may need to retire comfortably. One common retirement rule of thumb that can help you roughly determine how much you should save is the four percent rule.

Financial experts believe you can safely withdraw about $4,000 a year per $100,000 of savings during retirement, and that would last you approximately 33 years. So, if your living expenses are $40,000 a year, you'd need to save $1 million. This simple rule does not account for inflation or other sources of income such as Social Security benefits, but experts believe it’s a good baseline for gauging your retirement needs. (See also: 4 Retirement "Rules of Thumb" That Actually Work)

Bumping up what you contribute to your retirement fund, even by just a few dollars a month, along with lowering your cost of living is a great way to prepare yourself and your family in case you have to retire prematurely.

2. Plan for inflation

While the four percent rule is a great place to start, if you know that early retirement is highly likely for you, you need to be more aggressive. Fidelity advises that your goal should be to save at least six times your current annual salary by the time you are 50, and 10 times your income by the time you are 67. If you are not near these targets, it’s time to rearrange some things, rein in your spending, and begin aggressively saving.

Another pitfall of retirement many people forget to plan for is inflation. Retirement investments have failed to keep pace with our aging population, Social Security cuts, and hedge against the investment risks brought on by the shift from traditional pensions to individual savings.

When you retire, the world will be a more expensive place than it was while you were saving. You must understand and plan for the fact that $10 today will not buy the same thing in 2035. (See also: 4 Ways to Protect Your Retirement From Inflation)

3. Don’t take Social Security early

In 2014, LIMRA found that 57 percent of men and 64 percent of women took their Social Security benefits early. But since monthly benefits rise five to eight percent annually between ages 62 and 70, the longer you can wait, the better off you'll be. For example, if your full retirement age is 66, but you begin collecting benefits early at 62, your benefit will be reduced by about 30 percent.

In years past, once you hit 65, you were eligible for full Social Security benefits and could retire and receive a monthly check from the government. However, that is no longer the case — especially for younger workers who must put in more years to reach their full retirement age. Experts agree that you should only take your benefits early if you absolutely need to. Proper planning can prevent this from being your only option. (See also: 5 Questions to Ask Before You Start Claiming Your Social Security Benefits)

4. Consider a partial retirement option

"Partial retirement" simply means keeping a job on a part-time basis as a means to help stretch your retirement savings. By remaining in the workforce for a little while longer, you can defer retirement funds — such as Social Security, pensions, and even savings — until you decide to fully retire.

Some places, such as government agencies, offer phased retirement plans. These plans allow you to supplement your income by working part time while still contributing to your retirement fund and allowing you to keep a portion of your benefit package. It’s important to begin researching these things and understanding your options while you are able bodied. (See also: 4 Reasons You Might Have a "Phased" Retirement)

5. Find a side gig

If your company does not offer a partial or phased retirement option, side gigs are a great way to supplement your income and help tide you over until you reach full retirement age. And while most side gigs don’t come with benefits, you do get to set your own hours and work as you are able.

Now is the time to look into different side or part time jobs that fit your ability, skill set, and situation. What interests and hobbies do you have that could become profitable? Write them down and research ways you can make money doing those things. You may also want to research jobs you could do from home that are not too physically demanding.

Side gigs and part time jobs can also be good for your health. A 2016 Oregon State University study found that those who retire early die sooner than those who work beyond age 65. (See also: 9 Easy Ways Retirees Can Earn Extra Income)

6. Stick to a budget and pay off debt early

Surviving in retirement is not only dependent on how much you save, but also how much you spend. Most people have to scale back a bit during retirement due to a reduction in income. Scaling back after you retire is a tough thing to do. You have more free time to travel, indulge in hobbies, and spoil the grandkids rotten — all of which can quickly shrink your nest egg.

Start now by creating and sticking to a conservative budget. The extra money you save should go into your retirement fund or toward paying down debt. Scale back on expenses where you can and consider downsizing before it's time to retire for good. Establishing disciplined spending habits now will carry over and benefit you later — when it really counts.

A great way to reduce your overhead and free up some cash is to pay down your debt as quickly as possible and to get rid of your mortgage before you retire. The less debt you have, the more spending money you have. (See also: 6 Ways You Can Cut Costs Right Before You Retire)

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This article is from Denise Hill of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

Best Money Tips: 10 Steps to Early Retirement

Amy Lu — Wed, 25 Oct 2017 08:30:11 +0000

Welcome to Wise Bread's Best Money Tips Roundup! Today we found articles on the steps to early retirement, bad spending habits that are killing your budget, and the ultimate guide to driving with Uber.

5 Actions Women Can Take Right Now to Get Their Retirement On Track

Christa Avampato — Tue, 22 Aug 2017 08:30:10 +0000

I have female friends who range in age from their 20s to their 70s. When I talk to them about retirement, most of them share a striking similarity: They don't think about it until they have to think about it.

Truthfully, we must think about and actively plan for retirement long before we actually retire — decades before, actually. This is true for everyone and it's especially true for women. (See also: 12 Surprising Things Women Should Know About Retirement Planning)

As a woman, there are several actions you can take right now to get your retirement on track.

1. Plan for a long life

There are a number of retirement factors that women must consider more seriously than men. For example, the average life span for men in the U.S. is about 78 years. The average life span for women in the U.S. is 81 years. Since women tend to live longer, they must account for this and plan to have more money saved for retirement. Because of this longer average life span, it's also important for women to consider long-term care, the likelihood of chronic conditions and illnesses related to aging, and disability in their retirement planning. (See also: Is Long Term Care Insurance Worth It?)

2. Don't procrastinate

Several unfortunate facts for working women also increase the urgency and need for deliberate planning in retirement. There is no denying that a wage gap exists for women. Simply stated, women earn an average 20 percent less than men, and this gap exists in nearly every professional field. The gap is wider for women of color and working mothers. In some states, the gap is higher still.

Apart from dealing with a wage gap, women also often leave the workforce early, whether to raise a family or act as caregivers for an aging spouse or relative. These combined factors mean that women quite literally can't afford to waste time in their approach to retirement planning. They must work harder to match the retirement savings of men — in addition to having to save more money overall to support a longer life span. (See also: This Is Why You Can't Postpone Planning for Your Retirement)

3. Take control

Retirement can be, and often is, a complicated subject — so don't feel badly about not having all the answers about what you need to do and when you need to do it. There are people who spend their entire careers learning the ins and outs of retirement planning, and helping people toward a brighter future. The right adviser can be exceedingly helpful and supportive. No matter who you turn to for retirement planning advice, make sure you feel comfortable asking them questions and feel confident in their responses. The important step is to decide to take control of your financial planning. (See also: This Is the Basic Intro to Having a Retirement Fund That Everyone Needs to Read)

4. Create a plan

Now it's time to put an actionable plan in place. Your advising firm can help you set up the best retirement savings strategy, including finding the best possible tax advantages for you. Your workplace may be able to help, too. Some advisement companies also have online portals that give you a snapshot of your accounts, telling you if you're on track or not. These tools are invaluable in your retirement planning. Take advantage of all of them. (See also: How to Face 4 Ugly Truths About Retirement Planning)

5. Track your progress

In an effort to begin your retirement savings early, and to save as much as you can for all the reasons mentioned above, you want to automate your retirement savings whenever possible. For example, your workplace may offer Bi-Weekly deductions from your paycheck that go directly into your retirement accounts. You can personally set regular contributions from your bank account.

To stay motivated, it's important to track your progress. Take a look at your accounts once a month or once a quarter to see your savings growing. What gets measured gets done, and seeing your accounts grow will give you the confidence and encouragement to stay on your plan. (See also: 8 Signs Your Retirement Is on Track)

There's no denying that women face an uphill battle when it comes to retirement savings. With the gender-based wage gap, fewer years in the workforce, and a longer average life span, it's critical for women to start their retirement savings as early as possible and to put away as much money as they can. With careful planning, focus, and diligence, women can rise and meet their goal of a healthy, happy retirement. (See also: How Every Woman Can Take Control of Her Finances)

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This article is from Christa Avampato of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

5 Questions to Ask Before You Start Claiming Your Social Security Benefits

Dan Rafter — Mon, 08 May 2017 09:00:08 +0000

According to a 2016 poll conducted by Gallup, 59 percent of retirees rely on Social Security payments as a major source of income. Odds are that you, too, will need Social Security benefits to cover at least some of your living expenses after you retire. Because of this, you'll want these benefits to be as large as possible when retirement actually arrives.

Here are five key questions to ask before you start taking your Social Security benefits.

1. Are you willing to take a smaller monthly benefit for the rest of your life?

Taking Social Security benefits before your full retirement age will cost you in the form of a lower monthly payout. This payout will remain at this lower level for the rest of your life.

You can determine how much of a hit you'll take claiming benefits early by visiting the Social Security Administration's retirement planner site. As the site shows, if you start taking your Social Security payments before you hit your full retirement age, your monthly benefit will be lower.

How much lower? If your full retirement age is 67 and you start taking your benefits at 62, your monthly Social Security payment will be reduced by about 30 percent. If you start taking them at 64, they'll be lower by about 20 percent. Even if you start taking them one year earlier at 66, they'll still be lower — by about 6.7 percent a month. And remember, this is for the rest of your life.

As you can see, claiming benefits early can significantly reduce the amount of money you receive each month. Let's say you are slated to receive $1,000 a month in Social Security benefits and your full retirement age is 67. If you started taking your benefits at age 62 — the earliest you can take them — your monthly benefit would fall to $700.

2. Can you continue working?

While retiring early reduces your monthly Social Security benefits, working past your full retirement age actually increases them.

The Social Security Administration says that if you delay receiving your Social Security benefits until you hit 70, your monthly payment will be 32 percent higher than if you had retired at full retirement age.

Say your full retirement age is 66, and you'd receive $1,000 from Social Security every month starting at that age. If you wait to start claiming your benefits until you turn 70, your monthly payment would rise significantly to $1,320. You'd just have to determine whether you could hold off on receiving those payments until your 70th birthday.

3. How much have you saved for retirement?

Most people can't survive on Social Security benefits alone during their retirement years. Instead, they rely on a mix of savings from different sources — everything from 401(k) plans, to IRAs, to annuities.

How much you've saved for retirement will play a key role in how early you should take your Social Security benefits. If you've saved a significant amount of money for retirement, you might not need as large a monthly Social Security payment to meet your retirement goals. But if you haven't saved much, you might need that larger benefit payment. At the same time, working for a few extra years might help you boost your retirement nest egg, at least by a bit.

4. How healthy are you?

While there are financial upsides to waiting to claim your Social Security benefits, there are also times when this doesn't make sense. Often, this depends on your health.

If you're not healthy, you might need to retire early for your physical wellbeing. And while it's impossible to predict how long you'll live after retiring, if you're suffering from health problems, your post-retirement life might not last as long. Retiring as early as possible, and claiming those Social Security benefits earlier, might then be the best choice. (See also: 3 Reasons to Claim Social Security Before Your Retirement Age)

5. What kind of retirement do you want?

How do you plan to spend your retirement years? Are you looking forward to quiet days spent with your grandchildren, reading books, and pursuing a hobby? Or do you want to travel the world?

If you're looking for a lower-key, less-costly retirement, taking your benefits early — and receiving smaller Social Security payments — might make sense. But if you want a busier, more extravagant retirement, holding off until full retirement age, or later, might be the smarter choice.

This article is from Dan Rafter of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

How Are People Retiring in Their 30s?!

Dr Penny Pincher — Mon, 27 Mar 2017 09:00:11 +0000

When you think about retirement, it's generally a time later in life after you've put many working years into a career. But today, some people are retiring in their 40s, 30s, and even in their 20s! What is the secret to retiring so early?

I reached out to several bloggers who either retired or reached financial independence by the time they reached their 30s to learn just how they did it.

Even if you are not aiming to retire at a very young age, these strategies can still help you accelerate your retirement.

Secret 1: Pay down debt ASAP

The first step toward early retirement is to get rid of debt as soon as possible. Making payments on debt limits your ability to build your investments and grow enough assets to retire. This is how Michelle Schroeder-Gardner of Making Sense of Cents got started on the path to financial independence in her early 20s. "In the beginning," she said, "I worked many, many hours a week so that I could pay off my debt in seven months, but it was well worth it."

Secret 2: Take advantage of compound interest

The key to reaching early retirement is to save a large portion of your income — for example, 50 percent or more — and let that money compound over time. How can you put away that much on a modest income? You need to live very frugally so you can apply a large percentage of your income toward investments.

Jeremy Jacobson, who runs Go Curry Cracker with his wife Winnie, reached financial independence in his 30s. He explained, "We just used our income to buy our freedom rather than things and experiences that we would have quickly forgotten. Ironically, thanks to compound interest we can now have things, experiences, and freedom."

Secret 3: Multiple sources of income

Many of these bloggers who retired early had a traditional career for a time, and gradually built up "side hustles" to generate multiple streams of income. The extra cash helps get debt paid off faster and starts building your investment accounts sooner. Writing, owning income properties, selling items on eBay or Amazon, and consulting are some ideas to bring in "extra" money.

One of these side projects that you enjoy could grow into enough income to one day replace your primary job. (See also: 15 Ways to Make Money Outside Your Day Job)

Secret 4: Commit to living differently

One thing I noticed is that these people are quite different from their peers. They are not concerned about fitting in and even celebrate living much differently than others their age.

Travis Hornsby, blogger at Millennial Moola, was able to retire in his mid 20s. How did he manage it? "I lived in a semifinished basement for several months because it included utilities and allowed me to supercharge my savings rate," he explained.

Justin McCurry at Root of Good retired in 2013 at age 33 by redefining what qualified as a sacrifice. "Unlike our peers, we never upgraded our starter home to a McMansion, nor did we trade in our Honda sedans for luxury cars," he said. "Is that a sacrifice?"

Kristy Shen, one half of Millennial Revolution and retiree by age 31, resisted the pressure to buy a large home and settle into a traditional lifestyle. "We stuck to our guns because we knew the math didn't make sense," she said.

Secret 5: Know when to stop

Many of those who retire at an early age plan to maintain a low spending rate after they retire, allowing them to leave the workforce early. But how much is enough? There are many opinions about this, but many subscribe to the 4 percent safe withdrawal rate as a rule of thumb. Simulations have shown that under a range of economic scenarios, you can withdraw up to 4 percent per year from your investment portfolio with a very low probability of running out of money during retirement.

If your desire is to retire as soon as possible, it is important to have a specific goal for how much you need to accumulate so you don't end up spending extra years in the cubicle. For example, if you can live on withdrawing $40,000 per year from your account, then $1 million is the minimum amount you would need to fully retire under the 4 percent safe withdrawal rate. If you will have income after you retire, then you will need to withdraw less, so the balance you need to accumulate is less — and you can retire earlier.

Secret 6: Income after "retirement"

Many of these people who "retire" very early are actually still working at least part-time. Financial independence may be a better description than retirement for this lifestyle. Financial independence means that although you are still working, you don't need to do it purely for the money anymore.

Michelle of Making Sense of Cents started her blog in graduate school a few years ago to help pay off student loans faster. As a dramatic example of income after reaching financial independence, she now makes nearly $1 million per year from her blog!

Secret 7: Invest for growth

Saving the money is the first step, but you have to invest it so it will grow. Parking your savings in a bank account at less than 1 percent interest is not going to get you to retirement very fast.

Kristy of Millennial Revolution regrets her initial hesitation to dive into investments. "I think we spent a lot more time waffling on whether we should do the investing-route or the housing-route than we should have, and that caused some missed opportunities along the way," she said. "As a result, we stayed out of the market when the S&P 500 bounced off the floor in early 2009 because we were still deciding whether to buy a house. As a result, we missed a 40 percent rally from 2009–2010 just sitting in cash! Fortunately by the time we decided in early 2012, there turned out to be plenty more gains to go in this bull market."

Secret 8: Don't sink money into a house

This one comes as a bit of a surprise to me since I have gone the route of investing in a home. But several folks who have reached early retirement recommend avoiding homeownership in order to reach financial independence sooner.

Kristy and her husband Bryce felt scrutiny at their decision to forgo homeownership and continue to rent. "Going against the grain is tough, but it's even tougher to do for such a long period of time while everyone around you is pointing and saying 'What an idiot. They're renting and throwing money away.'" she explained.

The advice not to buy a house makes sense if your goal really is to minimize costs. Owning a home not only commits you to a mortgage payment, but also to additional expenses such as insurance, taxes, repairs, and maintenance. Plus, if you own a home, you are more likely to spend money on furniture, landscaping, and home improvement projects. In some cases, you may be better off minimizing your expenses by renting instead of buying a place to live during your run up to early retirement. (See also: Rent Your Home or Buy? How to Decide)

Secret 9: Enjoy now

In my experience, most people in their 20s are not focused much on retirement at all. But if you want to retire in your 30s, you will need to start working toward that goal very early in life. The earlier you want to retire, the more aggressively you will need to save money. But it is possible to focus too much on making and saving money. As you look forward to some great experiences after retirement, you don't want to miss out on unique opportunities to enjoy life along the way.

Joe Udo of Retire by 40 emphasizes this point: "If you're working toward early retirement," he said, "don't forget about the present. Being miserable every day will screw up your mental health."

How early should you retire?

Very early retirement is not for everyone. Retiring early clearly requires some significant sacrifices and lifestyle adjustments. You'll have to decide if this cost is worth the reward of reaching financial freedom years (or possibly even decades) earlier.

If you'd like to learn more and read about the journey of the bloggers mentioned in this article, check the table below.

Blogger	Blog (link to their best early retirement advice post)	Age at Retirement / Financial Independence
Justin	Root of Good	33
Joe	Retire by 40	38
Jeremy & Winnie	Go Curry Cracker	38, 33
Michelle	Making Sense of Cents	20s
Kristy & Bryce	Millennial Revolution	31, 33
Travis	Millennial Moola	25

This article is from Dr Penny Pincher of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

5 Reasons Stealth Wealth Is the Best Wealth

Sarah Winfrey — Fri, 24 Mar 2017 09:30:40 +0000

Some people who have a lot of money like to show it off. They buy large houses, expensive cars, and all the toys you can imagine. But others keep their affluence on the down low. They don't look any different from anyone else, but they have some serious cash stashed away.

These folks have what is known as stealth wealth. They are worth way more than they appear to be, and they often manage to retire early or follow their dreams in some other way that surprises the people around them — people who never realized they had that kind of money.

Sure, showing off your money is fun. But stealth wealth has its advantages, too.

1. It's real

The biggest advantage of stealth wealth is that it's real. So many people who live extravagant lifestyles are actually broke, living paycheck to paycheck, without savings for retirement or anything else. They are spending all their money maintaining their lifestyle without accumulating much of anything for later. Sure, their things are nice, but that's all they have.

Others are in debt. They don't actually have the wealth to maintain their lifestyle, so they are burdened by loans and all of the stress that comes with spending a lot more money than you make. (See also: 5 "When You're Rich" Dream Buys That Aren't That Great)

2. It lets you fly under the radar

Sometimes it's nice to fly under the radar. If you don't look wealthy, people won't ask you for loans. They won't ask you to support their wild new business scheme. They won't bug you for investment tips. And sometimes, that's what you want.

Most people with stealth wealth have hobbies and interests that go beyond their money, and they just aren't that interested in talking about finance. Sure, they've invested well and made wise choices, but there's not that much more to say about it. So keeping their affluence hidden means fewer question-and-answer sessions about money.

Flying under the radar also means you don't have to keep up with the Joneses. If people don't realize you're wealthy, they won't expect you to buy a bigger house, drive a nicer car, or shop at expensive stores. The pressure is off, so you are free to make whatever financial decisions are best for you.

3. It allows you to aim beyond accumulating stuff

Stealth wealth offers a way to live life focused on experiences, rather than material goods, a strategy that's been proven to make people happier. If you want to give a lot to charity, you can do that. If you want to take a couple of seriously luxurious vacations every year, you can do that, too. Or, you can just focus on micro-experiences, like dinners out with friends, more often.

That's the freedom that comes from not being tied to expensive payments on a home, a car, or a designer wardrobe. (See also: 10 Habits of Financially Happy People)

4. It's empowering

Sometimes, people with showy wealth begin to believe that their happiness is tied to ever greater consumption. They feel like they have to have lots of nice things, and the money to get more, or they will be miserable. It's a spiral of discontent. The more they buy, the more they feel they need to buy. They become slaves to their ostentatious lifestyle.

Folks with stealth wealth don't usually fall into this trap. Instead, they are using their money to achieve a goal. Whether that's early retirement or traveling the world, they aren't distracted by the pursuit of shiny objects. Instead, they know what will make them happy and have chosen to order their lives to attain that. Money is a tool toward happiness, not happiness itself.

5. It offers freedom from work

Many folks with stealth wealth are working toward early retirement. They know that they will be happier not being tied to a desk or an office in a day job. They are accumulating wealth so they can enjoy freedom from the working world.

Chasing ostentatious things, on the other hand, can tie you to a job you don't really want. In order to maintain payments on a mansion and a luxury car, you may have to keep working to pay those bills. While that's a perfectly acceptable way to live, it doesn't offer the same freedom that stealth wealth can give.

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This article is from Sarah Winfrey of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

The Surprising Truth of Investing: Mediocre Advice Is Best

Philip Brewer — Mon, 20 Feb 2017 10:30:26 +0000

My investing success made it possible for me to quit working a regular job 10 years ago, at age 48. Even so, I have written very little about investing compared to what I've written about other personal finance topics. There's a reason for that: I'm a mediocre investor.

Over the course of my career as a software engineer, I saved and invested, earning a mediocre investment return. Since becoming a full-time writer, I've continued to earn investment returns — which although still mediocre, have been enough to supplement my income from writing.

As a mediocre investor, I have hesitated to hold myself out as an investment adviser, even if my results have met my own needs in a very satisfactory way. I figured people would quite legitimately compare me to superior investment advisers, and it was a comparison that I didn't think would put me in the best light. And yet, I'm going to overcome my hesitation, because looking for superior investment advisers is probably a mistake.

There are two big reasons why mediocre investment advice is the better choice: It's adequate, and it's cheap.

Mediocre Investing Advice Is Adequate

The purpose of your investment portfolio is to support your goals in life, and a mediocre return will do the trick. A mediocre return — just a few percentage points over inflation — will turn a modest flow of savings into a portfolio large enough to let you buy a house, send your kids to college, and fund a retirement (even an early retirement).

Trying to get a better-than-mediocre return requires taking financial risks that put all your life goals at risk.

If you have plenty of money available for investing, you can do both. You can cover your basic life goals with a portfolio invested for mediocre returns, and then you can direct your surplus investible funds into a portfolio that shoots for superior returns.

It can be fun if you enjoy that sort of thing. I did some of that. Looking back, I'd probably have been better off just going for mediocre returns on the whole thing.

Mediocre Investing Advice Is Cheap

Superior investing advice tends to be expensive. It's expensive because it's worth it — but it's really only worth that much to the truly wealthy.

Think about it. Let's say really good advice can boost your average annual return by five percentage points. On a $100,000 portfolio, that's an extra $5,000 a year. On a $1 billion portfolio, it's an extra $50 million a year. If someone can really earn that kind of extra return, they won't be working for you. They'll be working for the 1%.

And it's not only getting superior advice that's expensive. Just following it is expensive. Following any financial advice — good or bad — costs money, but not only is getting mediocre advice cheap, following it tends to be cheap as well. And that cost savings turns out to support your investment returns better than even pretty good advice does.

Go With Mediocre

Just looking for superior financial advice is fraught. Most people who say they're providing superior investment advice are wrong. Some are simply deluded, others are flat-out lying. Either way, you really don't want to follow their financial advice — following bad financial advice can easily cost you your life savings.

Fortunately, it's easy to tell the difference: Bad financial advice costs money, while mediocre financial advice tends to be free (or nearly so).

Where can you get mediocre financial advice? Lots of places. You might start with two books I reviewed here on Wise Bread years ago that provide just the sort of mediocre financial advice I'm talking about:

The Little Book of Common Sense Investing by John C. Bogle: A perfect capsule of mediocre investment advice. It's also really short, because you can say about all there is to say about mediocre investing in a really short book.
The Only Investment Guide You'll Ever Need by Andrew Tobias: A slightly longer book that also covers basic personal finance stuff — so, not just investing your money, but also earning, spending, and insuring it.

How to Know It's Mediocre

It's easy to tell if the advice you're getting is the sort of mediocre advice you want. There are two characteristics to look for:

It's free — or, available for no more than the cost of a book.
It doesn't claim to be better than mediocre.

If somebody charges money for their advice — or, more importantly, charges a commission, or a percentage of your assets for their advice — then it's probably not mediocre financial advice. (Charging a small fraction of 1% to cover the costs of running an investment fund is fine. It's charging extra on top of that for advice that's the danger sign.)

If somebody claims that their advice is superior investment advice, or in any way better than mediocre financial advice, then it probably isn't mediocre financial advice.

If you spot any of those warnings signs, I suggest that you avoid those advisers. It doesn't really matter whether they are people who genuinely think they're providing superior financial advice, or people who are just playing on your hopes for superior financial advice. If you follow their investment advice, I can confidently predict that your long-term investment returns — after expenses — will be crappy. And crappy returns mean a lower standard of living, less security, no chance to retire early, and maybe no retirement at all.

This article is from Philip Brewer of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

4 Reasons People Don't Retire Early — and How You Can

Amanda Gokee — Tue, 07 Feb 2017 10:30:37 +0000

Retirement is undeniably a time of drastic change in most people's lives. Typically, people have spent at least four decades in the workplace by the time they accept their gold watch. The average retirement age is 62 to 65, depending on where you live, according to a survey by SmartAsset.

While work can provide routine and stability, as the years go by it can also grow to feel burdensome and stale. When to retire is a very personal question, linked to lifestyle and finances. Here are a few of the common reasons people feel they're not ready for retirement. (See also: 4 Reasons Early Retirement Might be Financially Risky)

Worried About Having Enough Money

It's probably not a surprise that monetary reasons are number one on this list. Having a regular paycheck affords a lot of comfort that can be hard to walk away from.

One of the most common reasons most individuals won't consider an early retirement is fear that their savings will be insufficient to provide the lifestyle they've been used to in their working years.

However, if you're serious about wanting to retire now, there are ways you can make your savings go further, such as retiring in a cheaper state, or even a foreign country where the cost of living is lower. Also, using the right credit card can save you thousands of dollars a year.

Alternatively, the gig economy affords a lot of ways for people who are officially retired to earn disposable income. For instance, you could rent out a room on a site like Airbnb to help pad your savings. Just make sure you check out local laws in your area for any restrictions on short-term rentals.

Hesitant to Lose Identity Tied to Work

In the Western world, one of the first questions we ask when meeting someone new is, "What do you do?" The meaning, of course, is what do you do for work. This question is a way of situating someone socioeconomically, understanding their background and education, and gaining a window into their lives.

Of course, identity goes beyond what you do for work, and this is an important shift to be conscious of when considering retirement. Many individuals may feel that they are giving up a part of themselves when they decide to stop working.

However, there are many other meaningful activities outside of work that have an equally important bearing on identity. These may include hobbies such as artwork, exercise, reading, writing, or travel.

While a loss of identity is a common fear for people facing retirement, in reality, retirement can give you the time to explore other creative outlets that you wouldn't have been able to partake in with a busy work schedule.

Instead of viewing the end of work as losing part of your identity, try to shift to viewing this as a time to explore different components of who you are. This will make early retirement meaningful, not boring.

Anxious Due to No Concrete Retirement Plan

According to a 2015 survey by the Deloitte Center for Financial Services, only 49% of consumers have a formal retirement plan. The problem of not having a plan for retirement is that it leaves fears and emotions to govern your decisions, as opposed to concrete numbers. Plus, by putting a plan in place, you can see very clearly what steps you need to follow to reach a certain goal, like retiring in five years, for example. (See also: 7 Retirement Planning Steps for Late Starters)

Afraid of Being Bored and Restless

Some people simply put off retirement because they are worried about being bored with all the extra time on their hands once they're not going to the office every day.

However, retirement doesn't mean that you have to stop working entirely. Some individuals use this time to move from a decades-long career they've grown tired of to more fulfilling employment, or even their own business.

If your new pursuit is something that gives you the chance to vary your work schedule, that can be very stimulating, too. Additionally, some universities offer free classes to those over 65 years of age.

You can also take up countless hobbies like yoga, dance, snorkeling, scuba diving, golfing, hiking, or biking. To stimulate the mind, you can throw yourself into an artistic endeavor or learn a new language, the ideal activity for those who choose to retire overseas.

Retirement is not just the end of one chapter, but also the beginning of a new one. Often, the biggest roadblocks to retiring are fear-based. It can help to re-evaluate the situation by looking at the facts, instead of just relying on emotions.

Of course, the decision to retire is a personal one, and the right age to retire is different for everyone.

This article is from Amanda Gokee of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

4 Keys to an Early Retirement

Nick Wharton — Fri, 03 Feb 2017 10:00:09 +0000

Does it seem like retirement can't come soon enough? Are you tired of feeling like you're wasting time at a job you no longer enjoy, daydreaming about the day you won't have to come in anymore?

The good news is there are several steps that you can take if retiring early is your goal. Retiring early will mean setting clear priorities and goals that you can meet, but it doesn't have to be out of reach. Consider these four tips to get there faster. (See also: 9 Things People Who Retire Early Do)

1. Slash Costs Now

It's easy to go on autopilot with monthly costs, but they can add up fast, especially if you're spending more than you should. By switching providers for home or car insurance, Internet, phone, and cable TV, you could save thousands a year. In fact, do you even need cable TV? What about that gym membership — are you using it enough to justify the cost?

Could you trim expenses even further by downsizing your home or getting by with one car? Leave no monthly cost unexamined.

While you're at it, look at the fees you're paying on your investments. Because of compounding, investment fees that seem small can eat a big chunk out of your retirement savings over time.

All of these cost savings won't be enough on their own to ensure your early retirement, but over the course of a few years they can add up and enable you to retire comfortably earlier than you may have thought. (See also: 14 Things to Do to Retire Early)

2. Look for Tax Advantages

When planning for retirement, it's important to consider the taxes you will have to pay once you stop working. While you can contribute now to 401K or regular IRA accounts using pretax income, you'll have to pay taxes on the distributions once you start to draw down the accounts.

On the other hand, you contribute to a Roth IRA with money that's already been taxed, but then it grows tax-free and you'll pay no taxes when you withdraw the money. Often it's good to have a combination of both types of retirement accounts. A financial adviser can help you decide. But keep in mind that withdrawing from either of these accounts before you hit age 59-1/2 usually incurs a tax penalty.

Taxes on Social Security are another expense to keep in mind for when you hit official retirement age. Social Security benefits may be taxed at the federal level, depending on what your total income is. But the IRS won't tax more than 85% of your benefits. Thirteen states tax Social Security benefits, while other states have low or no taxes for retirees.

3. Retire Abroad Full Time

Retiring early means figuring out a way to live on what you save during a shortened working career. You can lower your needs drastically by changing your country code.

If you've been working and saving in U.S. dollars, you can make that money go much further in a country where the cost of living is lower than in the United States. Many destinations in Central and South America, as well as many parts of Asia and even Europe, are much less expensive for Americans to retire to — and if you're looking for a warmer climate, you can find that too.

Of course, there are some logistics that you should take into consideration when retiring abroad.

Taxes

The U.S. taxes citizens or resident aliens living abroad on worldwide income, including Social Security, other retirement income and any earnings you may get from working in your new country. However, you may be eligible for the Foreign Earned Income Exclusion, which allows you to exclude foreign earnings — up to a certain amount — from your taxable income. The exclusion is adjusted annually for inflation. For 2017 it is $102,100.

You may also be subject to income taxes in the country where you retire, though many countries have treaties with the U.S. that make sure you are not double taxed. You'll need to research local tax laws to make sure you're in compliance.

Logistics

There are a lot of logistics involved in moving to a foreign country. You'll need to research the appropriate visa for the country you'll be living in. Many desirable locations for Americans have special visas for retirees. Generally, you'll need to show you have a certain amount of retirement income and you will not be allowed to work for a local employer on these visas.

Think too about whether you want to sell your home in the U.S. You may want to get rid of furniture and other belongings as well, though retirement havens such as Panama and Nicaragua allow you to import a certain amount of household goods duty-free.

Banking is another consideration. Many expats continue to hold a U.S. bank account and to transfer money between it and an account in the country where they live. If you've got a U.S. account it's also a good idea to have a U.S. travel credit card that charges no foreign transaction fees. A U.S. card can help you purchase from U.S. websites more easily and comes in handy during trips back home.

Health

In some countries, quality health care is so cheap that expats choose to pay out of pocket for treatment and medications. In other cases, you will need to research local health insurance options or make sure your U.S. insurance covers care abroad. Medicare is not available for health care outside of the U.S.

Other expats can be a great resource as you try to find doctors that speak English and have a good reputation.

The U.S. State Department has more resources for planning to retire abroad.

4. Move Abroad Part Time

You can also considerably lower your retirement expenses just by spending a portion of the year abroad, without the commitment of leaving the U.S. entirely.

Different people choose to set up this arrangement differently. Some will return to the same place every year, while others may prefer to try out somewhere new.

Taxes

As with moving abroad full time, you will still be responsible for paying U.S. income taxes on worldwide income, and you may be subject to local taxes as well. Many tax breaks in the U.S. and abroad are dependent on how many days per year you spend in the foreign country, so you'll need to research those requirements.

Logistics

The most important consideration when you'll be spending your time in multiple locations is your accommodations. Will you rent your home while you're away? Will you hire a property manager to make sure that everything is running smoothly in your absence?

Consider home or apartment exchanges if you are going to be overseas for a shorter period of time.

Health

For health insurance, you may want to consider purchasing travel insurance for the part of the year that you'll be out of the country to supplement your plan back home.

Early retirement doesn't have to be an unattainable goal. Focus on setting your priorities and using creative thinking to be able to retire when you want.

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This article is from Nick Wharton of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

Best Money Tips: Make These 7 Moves to Retire Early

Amy Lu — Fri, 21 Oct 2016 09:30:27 +0000

Welcome to Wise Bread's Best Money Tips Roundup! Today we found articles on smart moves for early retirement, how to have a tailgating party indoors, and ways to save money on a family vacation.

5 Ways to Handle a Forced Early Retirement

Dan Rafter — Tue, 07 Jun 2016 09:30:33 +0000

You had a plan: You would work until 67, contributing the maximum amount of each paycheck into your company's 401K plan. You would then enjoy a retirement of traveling the world and spending time with your grandchildren.

But then your company changed your plans. They let you go you at age 55 or 60. Finding a new job at this age isn't easy. According to an AARP study released in 2015, 45% of job hunters aged 55 or older were members of the long-term unemployed, those who were out of work for 27 weeks or longer. And when these older job seekers did find new jobs, they tended to earn less money. The same AARP survey found that almost 48% of people 55 or older were earning less on their new jobs than they did at their old ones.

Those are intimidating numbers. But they don't mean that a forced early exit from the workforce will dash your retirement dreams. Here are five steps that you can take after you've been laid off or fired to make your earlier-than-planned retirement a successful one.

1. Assess Your Financial Reality

It's easy to panic when you've lost a job. But your financial situation might not be as dire as you think. To find out, it's time to perform a quick financial assessment.

First, list your monthly expenses. These might be lower if you are no longer paying a mortgage each month. Then list the income you have coming into your household. Maybe your spouse's income means that you can still save enough money each month for a happy retirement. Maybe you'll need an extra income boost from somewhere to still hit those goals.

Depending on how close you are to your official retirement age, you might decide to start receiving your monthly Social Security payments. You'll get less each month if you haven't reached full retirement age, but if you can't hold off on the extra monthly income, receiving your benefits a few years early might be a sound move.

If you were laid off or fired, you probably qualify, too, for unemployment insurance. Make sure to take advantage of this. That extra monthly income could help you stay on track for your retirement goals.

2. Get Realistic About Your Retirement Goals

You might have to scale back your retirement goals should you be forced to exit the workplace earlier than planned. Maybe you planned to take a long trip every year. If you're forced out of work five years early, you might have to scale that back to just three big trips spread out over your entire retirement.

This doesn't mean that your retirement is ruined. But you might have to refocus. Maybe instead of joining that high-priced country club, you'll be taking your golf clubs to public courses throughout your city.

3. Make Sure You Have a Plan for Insurance

You'll need health insurance even after you lose your job. You might qualify for Medicare or Medicaid, though you might not qualify for these government programs depending on your age and income levels.

If you need insurance not offered through the government, you can search for a low-cost plan through the insurance exchange created under the Affordable Care Act.

Letting your health insurance lapse can be a costly mistake.

4. Find Part-Time Work to Fill in the Income Gaps

If you need some extra income each month, consider taking a part-time job. This work, even if it doesn't come with the benefits of a traditional full-time job, could provide you with the extra bit of cash that will keep your retirement dreams alive.

Depending on your field, you might find a part-time job as a consultant. But even if you can't, you can still find enjoyment, and some extra financial security, by taking on a position in a new field.

5. Meet With a Professional

Retirement planning is complicated when everything goes according to plan. When those plans are suddenly changed? It's even more of a challenge to make sure that you have enough dollars saved for your after-work years.

That's why it's important to meet with a financial adviser who can help you determine what financial steps you need to take now. Depending on your income and community, you might even qualify for free financial advice.

A financial planner can help you create a new budget and a new financial plan that fits with your new money reality.

Have you faced early retirement? What steps have you taken?

This article is from Dan Rafter of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

Best Money Tips: How to Retire By 55

Amy Lu — Tue, 17 May 2016 09:30:23 +0000

Welcome to Wise Bread's Best Money Tips Roundup! Today we found a strategy for early retirement, questions that will help you declutter, and the details on Hulu’s new cable TV service.

early retirement

Best Money Tips: The Downsides to Early Retirement

Top 5 Articles

Other Essential Reading

5 Things That Could Wreck an Early Retirement

1. Health crisis

2. Failing to live on a budget

3. Inflation

4. Becoming a caregiver

5. Incurring debt after retiring

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4 False Assumptions That Could Threaten Your Retirement Years

1. "I'll be able to earn income as long as I'd like to."

2. "Inflation will always be low."

3. "I'll always be healthy."

4. "If I ever do become seriously ill, my kids will be there for me."

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How to Plan for a Forced Early Retirement

1. Start planning early

2. Plan for inflation

3. Don’t take Social Security early

4. Consider a partial retirement option

5. Find a side gig

6. Stick to a budget and pay off debt early

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Best Money Tips: 10 Steps to Early Retirement

Top 5 Articles

Other Essential Reading

5 Actions Women Can Take Right Now to Get Their Retirement On Track

1. Plan for a long life

2. Don't procrastinate

3. Take control

4. Create a plan

5. Track your progress

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5 Questions to Ask Before You Start Claiming Your Social Security Benefits

1. Are you willing to take a smaller monthly benefit for the rest of your life?

2. Can you continue working?

3. How much have you saved for retirement?

4. How healthy are you?

5. What kind of retirement do you want?

How Are People Retiring in Their 30s?!

Secret 1: Pay down debt ASAP

Secret 2: Take advantage of compound interest

Secret 3: Multiple sources of income

Secret 4: Commit to living differently

Secret 5: Know when to stop

Secret 6: Income after "retirement"

Secret 7: Invest for growth

Secret 8: Don't sink money into a house

Secret 9: Enjoy now

How early should you retire?

5 Reasons Stealth Wealth Is the Best Wealth

1. It's real

2. It lets you fly under the radar

3. It allows you to aim beyond accumulating stuff

4. It's empowering

5. It offers freedom from work

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The Surprising Truth of Investing: Mediocre Advice Is Best

Mediocre Investing Advice Is Adequate

Mediocre Investing Advice Is Cheap

Go With Mediocre

How to Know It's Mediocre

4 Reasons People Don't Retire Early — and How You Can

Worried About Having Enough Money

Hesitant to Lose Identity Tied to Work

Anxious Due to No Concrete Retirement Plan

Afraid of Being Bored and Restless

4 Keys to an Early Retirement

1. Slash Costs Now

2. Look for Tax Advantages

3. Retire Abroad Full Time

Taxes

Logistics

Health

4. Move Abroad Part Time

Taxes

Logistics

Health