So, you’ve decided to retire early, which means congratulations are in order. It’s never an easy decision to make, especially at a relatively young age. But, if you think it’s the right move, it is worth celebrating. All you need to do now is figure out which of the retirement types you’re going to pick. Oh, did nobody tell you? Yep, there isn’t just one form of retirement; there is four.
Below are the different types and what you’ll need to make it work.
Simply put, this is the model employees throughout the civilized world have come to love and cherish. It’s the idea that after 30 to 40 years of hard work, a person bows out gracefully. How smoothly depends on your finances. Over the years, you should have contributed to a variety of plans for the sake of your golden years. To pull this one off, you’re going to need every penny from every retirement plan. The key is to track down all of the ones you have paid into, consolidate or organize all of your accounts, and create your withdrawal strategy. In this scenario, you’re going to need patience and an eye for the paper trail.
Scratch the “love and cherish” part of the last paragraph. The retirement plan workers truly love is early retirement. There is no better thought than quitting early and moving to an exotic country with sun, sea, sand, and cocktails, or simply just living free at a younger age. Of course, not everyone can afford this method, and that is something to bear in mind while daydreaming about it. Once you retire, there is no additional income apart from the money in your bank account. Therefore, cutting costs, debt elimination, and budgeting properly are the keys. For those challenged with plastic balances, try consolidation.creditcard to reduce your expenses. For the people who struggle with money, think about hiring a financial planner to help set a realistic early retirement plan.
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This is for the people who either can’t afford full retirement or don’t want to fully make the switch. Yes, there are those who love to work and don’t want to give it up altogether. It goes without saying, but a steady, part-time role is essential for semi-retirement. The sensible and easiest method is through a phased retirement approach at your employer. Some people will find this obvious, but it’s difficult to predict an employer’s motives. Even if you want it and it makes sense for the firm, they might not want you on the books. One thing you have to ensure if semi-retirement is a mandatory condition for you is that there is a part-time position with a stable wage before you make a decision.
Not many people will think this is an option. Fewer people will know someone on temporary retirement (aka Mini Retirement) because it isn’t a popular choice. The reason for this comes down to job stability and your particular payable skill-sets. Moneyboss.com points that the key to this option is to work for ten to fifteen years and retire for as long as the money last. However, there needs to be options on the table when you come back. Otherwise, you will have no job and no money. Alternatively, you can stay in contact with your professional connections to pull strings during your retirement, or work freelance.