For any human, time is the most important asset. It is sad that humans exchange time with money. The good news is that it is possible to purchase time back. This is termed retirement. It follows that everyone should retire as much early as possible. Financial security must be there prior to arriving at such a decision. In case you are still thinking whether you should retire early, a few reasons make a compelling case.
Regrets and retirement planning
Most of the dying have one regret in life: it is the lack of time. They were so careeristic that they neglected their family and children for some extra money and corporate position. The result? These people missed the companionship of their partner and the joy of seeing their children growing up. It is possible to earn back money you have lost. It is not possible, however, to get back time. Moments get missed forever. When you retire early, it means you get to enjoy your family to the hilt. Another factor is advancing age. A 60s person cannot do what he or she could do during youth. Retiring late means you may not have sufficient time to do all of them.
If retirement planning is done right, then money will always be there in the bank for life's enjoyment. To make sure that you do not exhaust your money prior to your death, read as much as you can on withdrawal rates of retirement savings. Financial advisers say a withdrawal rate of 3.5 percent. Find out the amount of money you wish to spent post retirement. Once you have calculated the amount, save and also invest the appropriate assets. In case you are afraid of a market collapse, it will be easy for you to take some part time work. Using a 3.5 percent withdrawal rate mans that an annual income of $10,000 becomes $286,000 in the portfolio.
You can also dip your hand into Social Security after you reach 62 years of age. Even though you get reduced monthly benefits, this may assist you to shore up the retirement funds in case you feel the requirement to do so, You must not expect the Social Security to fully fund retirement life.
Retiring from work does not mean retiring from the activity you love. Early retirement may enable you to write the book you always wanted to write. You can also open a bar or cafe and make a nice income from it. The point is you can always continue to work if you want to.