Retiring
early sounds like a dream. No more work, no more stress; just relaxation and
time to do the things you’ve always wanted to do. “But there's only one problem
with this wishful thinking: Retiring early is easy, but making your money last
is hard” (How Stuff Works). The full retirement age is 66 or older, depending
on what year you were born. It is possible though, to start receiving
retirement benefits (Social Security) at age 62, but it will cost you because
you will only receive partial benefits. “If you start collecting at 62, you'll
receive only a partial benefit. Calculated over the length of your retirement,
you'll receive 25 percent less Social Security benefits if you start collecting
at 62 as opposed to waiting for your full retirement age” (How Stuff Works). If you decide to retire before the age of 62,
you will be solely dependent on retirement and savings accounts you have set
up. “To understand how much money you’ll need after you say good
bye to your nine-to-five job, take your pre-retirement income and multiple it
by 35 (assuming you’ll live to age 85). For example, if you are living off
$100,000 now, you’ll need about $3.5 million when you retire. Not a small sum”
(Forbes). To
get a realistic view of your finances, the McDaniel & Company website
offers easy to use calculators that can help you figure out how much money you
actually have and how much money you will need. From loan comparisons to
savings goals, and Net Worth to Lifetime Earnings, these calculators can give
you a proper and realistic view of your finances. If you have any questions
about these calculators or you would like to schedule a consultation, please
contact us! We will be happy to assist you.
Do
you plan on retiring early, or have you retired early? Let us know in the
Comments!
Forbes.
Anna Vander Broek. ‘How to Retire Early’. http://www.forbes.com/2010/11/02/retire-early-plan-lifestyle-personal-best-10-saving.html
How
Stuff Works. Dave Roos. ‘How to Retire Early’. http://money.howstuffworks.com/personal-finance/retirement-planning/how-to-retire-early.htm
