It’s a dream for most Americans, but early retirement can be a reality!
Cashing out, quitting your job, spending your days on a beach. Early retirement sounds great, right? Right! But for many people, especially those in the millennial generation, early retirement might seem like a great day dream but one that never comes true.
According to a survey by Bankrate, millennials think the best age to retire is 61. However, many Americans are having to work into their 70s nowadays!
With a little planning, some scrimping and saving and sacrifice, you can retire early as a millennial. Here’s how. Read on!
Manage student loan debt
One of the biggest hurdles for millennials on the path to early retirement is student loan debt. If you can manage to pay off your higher interest loans first and aggressively, you will be on the path.
Save, save, save
Start saving, early and as much as you can. Don’t neglect all your options for saving, like a 401(k) plan with an employer match, IRAs and other options.
You should be saving at least 10% of your pre-tax income EVERY YEAR as soon as you start working full-time.
Be aggressive.
Pay cash
If you can’t pay cash for something like a vacation, new furniture, a car or any other splurge or indulgence, then don’t buy it. It’s that simple. Don’t rely on credit to fund your lifestyle.
If you want to retire early, the only debt you should carry is your mortgage and possibly your student loans.
Otherwise, you’ll end up constantly trying to pay down debt instead of saving, and that will seriously get in the way of early retirement.
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If you have other questions about retirement plan loans, email us or call 937.308.0758.
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