early retirement planningAre you hoping to win the lottery before you can retire early?  Well, to retire early all you need is strategic early retirement planning and lots of sacrifice.  Most people who wish to retire early have one a big problem in one area – delayed gratification.  It’s true, they want what they want when they want it regardless of the long-term consequences.  But if your truly serious about retiring early there are 4 simple that you can take to help you achieve your goals.

The 4 Simple Tips To Early  Retirement Planning

Let’s be honest your chances of winning the lottery are slim and none but this doesn’t mean you have to give up on your dreams.  You can still plan to retire early but if you wait too long your nest egg will be quite small.  You’re not alone, less than 3 in 10 working people have saved money for their retirement.  In fact, those that have not even started saving still believe that they will have enough money saved by the time they retire.

Let me forewarn you that if you have a lot of debt, your chances of retiring early are greatly diminished.  Why?  Because debt is a deterrent to growth.  If you have a lot of debt try to get rid of it especially those 21% interest that some credit cards carry.

So how do you begin?

Step 1: Develop a plan
Determine how much money you’re going to need to fund your lifestyle when you retire.  You’re are most likely going to be on a fixed income so keep this in mind.  Also, one of the biggest expenses your going to incur is long-term health care so you’ve got to prepare of it.

There’s a expense calculator at MSN Money Retirement Expense Calculator.  If you want to see how much you’ll need to save to produce that kind of income you desire go to Retirement Income Calculator

Step 2: Take advantage of tax-deferred opportunities
You can maximize your investment growth if you invest in things such as a 401(k) or a self-directed IRA.  You are deferring your income while compounding your growth.  These are can’t lose investment strategies as long as you take a long-term perspective.  If you’re working a traditional job enroll in retirement program immediately to get the maximum punch for your dollars invested.  Once you put the money in forget about it.  Remember this is money is to fund your early retirement and you don’t want to be subject to those 10% penalties if you decide to go fishing early.

Step 3: Invest it
You need your money working for you as quickly as possible.  Look for investment vehicles that are earning above average interest rates.  Search online to see if you can find a good non tax-sheltered mutual fund.  More importantly than what you invest in is the consistency which you invest.  It’s best to set up fixed automatic deductions from your checking or savings accounts so you don’t even have to think about it.  Always keep the long term perspective in mind as there are no short cuts to any good investment strategy.

Step 4: Stick to your plan
Most people will never retire early because they simple lack the discipline that it requires.  You many not be able to live like the Jones’ in the short run but over time with the right investment strategies and delayed gratification you will be able to live the life of your dreams.  Always choose lifestyle over high wealth accumulation.  Live modestly and watch your dreams be born right before your very eyes.  The earlier you start and the longer you can go without touching your money, the more you money will grow.  Once you create this new habit of savings it will become quite easy.  Don’t underestimate the power of early retirement planning as it can make a huge difference in how your life is experienced in your golden years.

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  1. Planning For Retirement: 3 Tips To Keep In Mind

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