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3 reasons to retire as early as possible – The Motley Fool



The early bird gets the worm – advice that may seem pointless to early retirees (unless they plan to go fishing). But they have more time to enjoy hobbies, travel or other activities that they did not have time to do during their work.

Here's a closer look at this and two more reasons to consider retiring prematurely. Check if any of them make sense to you.

  A green highway sign indicates the next exit.

Source: Getty Images.

. 1 You only live once

It may be a banal saying ̵

1; to appear on hats and t-shirts as YOLO – but that does not make it any less true. If you work as long as possible, you may have a relatively short retirement. This can be helpful if you are miserably late with your retirement savings or if you just enjoy working. But it's not what many of us want

this life expectancy information from the Social Security Administration.

  • A 65-year-old man can expect to live on average until 84.
  • A The 65-year-old woman is expected to be 86 1/2 years old.

It is good news to know that you have a 50/50 chance to reach 84 and more, but remember that these are averages, which means about half of them men will not reach 84 and more than half of the women will not reach 87. So it's worth making the most of your time.

Retiring while you are still relatively young probably means that you will be able to enjoy a more active lifestyle for several years. It will probably be easier to travel, play tennis or golf and work in the garden. And even better, when you're retired, you can stay healthier, lower your health costs, and improve your mood.

. 2 You can afford

Of course, it's easy to imagine how nice early retirement would be, but can you really afford it? Many people can not, but maybe you can !

Estimate a little how much income you need in retirement. Then use this number to find out how much you need to save by retiring. If you imagine that you need $ 65,000 a year in retirement, you may receive $ 25,000 from social security, so you'll need to calculate the difference: $ 40,000. If you use the 4% rule as a rough guideline, multiply it by 25 (the 4% reversal) and you'll get a required nest egg of $ 1 million. Do you have so much now? You probably do not, but you may be able to accumulate this sooner than you think. Here's how regular investment can grow:

Invested at 8% Growing for

$ 10,000 annually

$ 15,000 invested annually

$ 20,000 invested annually

5 years

$ 63,359 [19659021$95039

$ 126,718

10 years

$ 156,455

$ 234,683

$ 312,910

15 years

$ 293,243

$ 439,865

$ 586,486 [19659023] 20 years

494,229 $

$ 741,344

$ 988.458

25 years

$ 789,544

$ 1,184,316

$ 1,579,088

30 years

$ 1,223,459

$ 1,835,189

$ 2,446,918

Source :. Calculations by the author

give some thoughts on how much you have already saved, how much more you may have accumulated, and when it will be enough to earn enough income to support you in retirement.

. 3 You want to do another job.

If you do not like your current job or are burned out, there are many other ways that you can make money. They may pay so much or not, but they could be happier and less stressful.

Living with less stress is reason enough to retire early and consider whether you can do it. It has been found that stress affects our health and even shortens our lives. If you can retire prematurely from your current job, you can still work a little or a lot in another job. This is not a bad way to start your retirement – many retirees are uneasy or unhappy when they are unemployed when they suddenly have no structure to their lives and have the regular sociability they engaged in lost at work

There are to make countless opportunities. Extra money. About 25% of Americans are already involved in an ancillary business, and these companies may become major retired occupations. For example, you could give tuition to children, knit and sell sweaters, sell photos, or become a pet sitter.

Many people simply can not or should not retire prematurely. But after careful consideration of your finances – perhaps along with a financial adviser consultation – you may find that you can indeed leave your job early


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