10:49 22 January 2013
As a general rule, the later you retire, the more retirement benefits you’re going to enjoy. However, waiting until you hit 60-70 years old isn’t exactly fun. This is the reason why more and more people are now thinking about early retirement.
Early retirement is something that you can make happen. Although it requires planning and lots of adjustments, it is definitely worth it.
Here are some tips to help you out:
• Know if your employer offers early retirement package. Some employers offer early retirement package if you’ve work for them for several years. This is usually called severance pay. Determine if the money, together with your other retirement funds are enough to sustain the quality of your life right now. If not, proper planning is needed.
• Save as early as possible. The best thing that you can do in order to retire early is to save money as early as possible. Experts agree that it’s never too early to save for your retirement. Put a certain percentage of your monthly wage (about 20%) to your retirement fund. If you do this 10-30 years before retirement, you’ll be able to accumulate enough money needed to retire early.
• Passive income. Aside from building up your retirement fund as early as possible, looking for passive income is also great. Passive income means getting money on a regular basis even if you don’t work. Examples are renting properties to tenants, getting annual dividends from companies you’ve invested in, etc.
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