Yah--And after you're gone they'll sooth their sorrows in Hawaii or The French Riviera looking for a place to dump your ashes instead of buying that nice coffin you always wanted or worse yet buy two plots at the local pet cemetary next to Fluffy--
>>> Can you retire early? <<<
Yeah, you can. Here's how:
Pay yourself first.
1. Put 6% of your money into the company's 401k.
2. Max out a ROTH IRA. This year you can tuck away $4,500 year for yourself, $4,500 for your spouse.
3. Go back to the 401k and put as much money as you can into it.
All the money put into the ROTH and the 401k are given favorable tax treatments. Allow this money to ride and multiply itself. When (and if) enough time passes you will become rich enough to retire to a life of leisure.
The trick, of course, is to learn to spend less than what you make. Save half of your raises, all of your overtime. Allow the passage of time work for you.
Many people think of retiring early until they see a financial advisor and then their jaw drops. It's not too hard to retire for about 10 years but having enough money for the long haul so as not to be broke in those later years takes much more than one might realize. For a person in their 50's and in good health will need today close to a million in cash if they don't want to spend their retirement looking out the window. Inflation and taxes will eat up a decent chunk of that money. See a good advisor, have them run the numbers, you'll be surprised. Stats show the average baby-boomer has less than 55,000 put away for retirement--those folks will be in for a rude surprise before they know it since most don't have pensions.
>>>>>>For a person in their 50's and in good health will need today close to a million in cash if they don't want to spend their retirement looking out the window. Inflation and taxes will eat up a decent chunk of that money.
I've said that very thing to many who are still spending, puffing, eating & drinking their way to disaster. Someone on this board stated, "you don't want to run out of money before you run out of breath." So true!
I can tell you from Experience, that what you say is 100% true, as I have seen it in my peer group Over & Over.... I Happily Retired at 54, & because of Proper Planning, I hope to never have to look back...
The only thing I would add to your 'needing a million', is the fact that if you have a steady income stream (pension, interest, etc.,) then the Million (saved) Is Not A Necessity, IMO...
But you are Right in thinking that you'll need a million, in order to spend a million every 20 years or so, PLUS Inflation...
Date: 04/13/05 05:17 am
Well is it easy to retire early if you are not financial geniuses
Sure, if you saved a large part of your paycheck instead of spending it on junk.