I like answering surveys. They\u2019re kind of a professional curiosity for me, like a baker tasting chocolates. But lately, I\u2019ve been stumped by one of the questions at the end of the survey. It\u2019s the one that asks about employment status. The choices are: Employed full time, employed part time, unemployed, or retired. I hate to check \u201cemployed,\u201d because it\u2019s a point of pride for me that I work for myself. But I\u2019m also not unemployed \u2013 I\u2019m still working and getting paid for it. Technically I retired from corporate life when I was 55. But I expect to continue with my consulting practice until I \u201creally\u201d retire. Whenever that is. So, I guess you could say I took a kind of early retirement.<\/p>\n
Taking early retirement and working for myself allows me to continue practicing my craft and stay relevant. I also get to choose when to work, how much, and most importantly \u2013 with whom. Throughout society, retirement is starting to take on a new meaning. For many people it\u2019s a chance to have more control over their time, whether that means working, playing, or simply having better balance.<\/p>\n
The retirement clich\u00e9 is golf and travel and afternoon cocktails on the veranda. Of course, nobody wants to be a clich\u00e9. Just as the world of work has changed in the last few decades, so has retirement. While some people (including the president) are working into their 80s, others are calling it quits as early as 50 or 55. But early retirement doesn\u2019t mean a rocking chair on the porch. For some people it\u2019s just a different kind of work or the freedom to start a dream business. For others, early retirement frees up time for a passion project or a completely footloose lifestyle. YOLO is real. You Only Live Once.<\/p>\n
The key to retiring early is to have a plan. A major part of that plan will be financial, but you\u2019ll want to build your plan around the vision you have for your future. Because the earlier you retire, the longer you have to plan for. Your own personal scenario will shape your plan. For example:<\/p>\n
Knowing what your retirement will look like helps you \u2013 and your financial planner \u2013 prepare for it.<\/p>\n
It\u2019s important to give yourself plenty of time to plan for your retirement. Which means if you want to retire early, there are steps you should be taking in your 30s and 40s. Make conscious moves to maximize savings and minimize debt so you\u2019re financially ready by your target date. You\u2019ll want to understand where your retirement money is going to come from and what your expenses might look like.<\/p>\n
This kind of financial planning and discipline will do more than prepare you for an early retirement. It also allows you to be prepared for unexpected changes in everyday life. Even if your retirement date is years away, careful planning can help you build a cushion in case of a layoff or a family situation that requires you to step back from full time work for a while. Things happen.<\/p>\n
The \u201cnormal\u201d retirement age is 65 (that\u2019s when you\u2019re eligible to start Medicare), but normal isn\u2019t for everyone. Early retirement can feel scary. Take it from me, you don\u2019t want to jump into it unprepared. Your financial plan will help you think about when to make the leap, how to prepare, and what changes you\u2019ll need to make so your early retirement vision can be reality.<\/p>\n
Questions to think about if you want to retire early:<\/p>\n
Action Steps:<\/p>\n