How Easy Is it to Retire at 50?

Do you have dreams of being able to retire early? Do you want the opportunity to really enjoy your senior years? Maybe you have big plans of travelling, perhaps you just want to be able to relax and not have any work responsibilities, or maybe you want to be able to spend more time with family and friends. Whatever the reason, retiring early is something that many people work towards but aren’t always able to accomplish.

So exactly how easy is it to retire at age 50? Let’s take a closer look at some tips and advice that can make it possible for you to retire early and live out your dreams.

Start Investing Long Before Retirement

While there are a plenty of people that depend on working long enough to pay off their mortgage and save money at the same time, others want to be able to accelerate how much money they have available to them in the retirement years. For these people, investing may be the best answer. Obviously, with investments there is never a guarantee, but there are those investments that are considered much safer than others and typically take longer to grow in terms of profits.

If you’re looking to wade into the territory of investments for the first time, it can be worth your while to use a broker. Just be sure to do your research and pick a broker that matches your investment style and goals. To get you off on the right track, InvestinGoal’s list can be a helpful tool while you’re looking for that perfect broker.

The earlier you begin investing, the more time your money will have to grow. But you have to invest wisely and weigh your risk vs reward carefully before you make a move. You could easily lose money by investing on bad speculative stocks for instance. At the other end of the spectrum, you can’t be too cautious either. You can’t only stick to sure bets like CDs or money market accounts if you want to get good returns.

If your goal is to retire early, then you have to have a long term trading strategy as well. Ideally, you should stick with dividend yielding stocks that will be here for years to come. The more you change your mind, the more chance you might end up making the wrong move. And the more trades you make, the more fees you have to pay, so you have to keep that in mind too.

If you’re in it for the long haul, your focus should be not to lose any money rather than trying to go for big short term returns. Whatever you do, try to stay away from high risk speculative investments at all costs. Yes, break outs do happen from time to time, but the chances of that happening are usually 100 to 1. So, if you want to reach your goal, invest in established companies that will still be there a few decades from now when you’re finally ready to retire.

Index funds are also a great low risk way to invest by tracking various indices, like the FTSE 100 for instance. Index funds replicate the market and allow you to get broader market exposure instead of investing in multiple individual stocks. And they’re much cheaper than actively managed funds as well, which is another major plus.

Make Sure All Debt is Paid Off Before Retirement

One sure fire way to sink your dreams of retiring early is to have debt. If your goal is to retire at age 50, then you need to make sure all debt is cleared at that point. That means things such as your mortgage, car payment, credit cards, loans, etc. This clearing of debt can help provide you with direction as you work towards early retirement.

Take on the Extra Hours at Work

While you are still working, it’s also important you don’t shy away from extra hours. Remember, all that extra money is just more money that can go towards making your early retirement possible. That extra cash can be used to pay down debt faster or can go straight into a retirement savings.

Downsize and Live on Less

The final tip is to consider downsizing and living on less. Once you are retired, maybe you don’t need that big house anymore, perhaps you don’t need a brand-new fancy car or a car at all, and maybe you can cut back on other expenses. Living on less means you’ll have more money to spend on the things you have looked forward to in retirement.

Retiring early doesn’t have to be the impossible dream, instead it’s all about creating a realistic plan that you stick with. There will be times when it will seem tough but keep that end goal in mind and keep a positive attitude.