How to Retire Young. Lessons From People Who Made it

By Rick J. — Published February 21, 2018

How to Retire Young. Lessons From People Who Made it

Retirement always seems like something that is far off in the future, especially for those of us who have just started our career. Many of us don't really think about retiring or start planning for it until we are well into our 30s. The ideal age for retirement, according to many of us is between our late 40s and maybe early 60s. Retirement planning starts around the time we are in our mid-30s.

The truth is, we don't really have to wait that long to retire. You can always retire around the time you are thirty-five and enjoy the good years of life, provided you are smart enough.

A lot of us think that retiring so young is a crazy idea. What about the future of our family? How would we send our kids to school? How would we pay off the mortgage on our houses?

Well, here are some tips and some lessons from people who bid goodbye to their jobs quite early in their life and still made it.

Recently, Forbes had featured an article about a young woman who retired at 35 with assets of $2 million. The magazine calls this woman Julia, and while it may or may not be her real name, she is a true example of what one needs to do to retire young.

Here is how Julia made enough money to retire happily at the age of thirty-five.

Investing for your children starts early
Julia was not from a wealthy family. Her family did, however, understand the importance of saving for Julia's future. They taught Julia the importance of saving every penny right from childhood. Julia's parents used to put away the money she used to receive for birthdays and other occasions into a savings account. The money was meant to help her with her college expenses in the future.

Invest in profitable assets right from the start. Keep the future of your children in mind and start saving when they are young. Money received in windfalls and inheritance can be set aside so that both you and your children will have a better future.

Plan what you need to make it happen
If you dream of retiring young, you need to calculate how much you will need in terms of financial assets to make that happen. What are your dreams for retirement? Is it to travel? Is it to start your own business? Whatever it be, plan your goals accordingly and try to create a budgeting plan that will give you what you need at the end of a given period.

This might mean that you will have to restrict many of your expenses for a while. For instance, even when her income increased, Julia did not spend it all away. Instead, she wisely limited her expenses and ruled out the unnecessary expenditures. Soon, she saw her savings mount up with each passing year.

Once you have reached a stable income, it is time you started thinking about investment options. Julia explored the retirement plans that were sponsored by her company. In addition, she researched several stock options that would minimize her losses even if the market did not perform well.

Investing in stock options are a great idea to maximize returns. There are a number of stock options available and it can be confusing to choose from them. The best way to go about it is to conduct a thorough research and seek the help of experts. Your best option would be to invest in options that perform reasonably well and suffer reduced losses even during a poorly performing market.

In addition, always explore the retirement plans provided by your company. Most of these plans are similar to personal investment plans but, the advantage in taking a company retirement plan is that your taxes will be deferred. A number of companies also match the funds that their employees are willing to invest. Such retirement plans are of great benefit.

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