The concept of an early retirement sounds great in theory: reducing the working years to spend more time relaxing and enjoying not having to rush off to work each morning. But in reality, whilst we do have more time to enjoy retirement, we also have less time to build wealth or prepare for our retirement.
Early retirement planning is just like conventional retirement planning with one major exception being: TIME. The traditional retirement timeframe is around 30 years but for those planning an early retirement the time frame can extend to 40 or 50 years. This means that not only do you have a shorter time frame to achieve your financial goals and financial independence; in addition you will have more time that your money will need to last after retiring.
If an early retirement is something you aspire to, here are five things you need to know:
It’s important to remember that retirement doesn’t have to be a line in the sand in terms of working and non-working. Many retirees opt for a transition to retirement by reducing work hours, engaging in part-time or casual work, volunteering and mentoring others.
ClearWay Advice and Financial Management is a Corporate Authorised Representative Representative No.473095 of Keystone Partnership Pty Ltd ABN 22 169 650 720, Australian Financial Services License (AFSL) No.466137.