Turn off CNN and step away from the New York Times!
Do it NOW!
Posted on 08/15/2008 12:55:11 PM PDT by BenLurkin
Many people dream of retiring early, but few actually make it a reality.
Taking certain proactive measures, such as investing in a 401(k) in your 20s and eliminating debt, will help set you on the path to early retirement. But even if you achieve these goals, it's nearly impossible to know whether that nest egg will be enough to get by. You'll have to consider certain factors such as the lifestyle you'd like to maintain, the number of years before you start receiving Social Security checks (full benefits kick in between age 65 and age 67, depending on the year a person was born) and the unanticipated but costly health expenses that could pop up along the way.
Start Early
It's a simple rule of thumb: The earlier a person starts saving for retirement, the better the odds are that they can retire early.
Get the Company Match
Don't walk away from free money. Even if more immediate expenses, such as a mortgage or health care, are stretching the family budget thin, try your best to contribute enough to your 401(k) to receive the full company match.
Diversify Your Investments
Having a healthy mix of investments in your retirement accounts can help you withstand market volatility and keep your retirement savings intact.
Eliminate Credit-Card Debt
Even if you have a solid 401(k), you can kiss early retirement goodbye if you have credit-card debt.
Pay Off the Mortgage
Just as credit-card debt can derail an early retirement, so can a pricey mortgage. That's why it's important to pay off the house before you start dreaming of days without the 9-to-5 grind.
(Excerpt) Read more at finance.yahoo.com ...
The obvious action to achieve early retirement is to work for the government. The taxpayer will be very good to you in most states. Saving in 401K plans is for the masses, not for the annointed public employees. Early retirement is their right.
uh so where is the part about having a big job or a rich uncle?
Buy house in Southern California.
Pay off by retirement.
Sell and move some place much cheaper.
LOL
I believe the last annual report I received from SSN stated that I’d have to work until the age of 70 before I could receive the “maximum” monthly payment of my money. By the time I reach that age I’m sure it will have risen to 90 years of age.
We federal employees do have a 401K plan, called the Thrift Savings Plan. I contribute 11% of my salary and the government contributes 5%.
The TSP, of course, is a supplement to our pensions.
And inflation costs us about 17% per year.
Inflation is at 17%?
Which planet are you on?
Of course, our pensions are indexed for inflation.
Bookmark for later.
The most important thing we can do is vote Republican, since the Democrats are likely to further tax your home, your 401K’s and anything else that has any value.
Ping for later.
Turn off CNN and step away from the New York Times!
Do it NOW!
thats right baby! out when i’m 46 at 50% pay and full bennies for me and the family. then it’s find a cushy gig and move out of the northeast!
The TSP, of course, is a supplement to our pensions.
I am covered under the old Civil Service Retirement System (CSRS) which receives no matching contributions from the government. I have been maxing out my contributions, including "catch-up" contributions for a number of years. Employees hired after 1984 are under a different system (Federal Employees Retirement System, or FERS.) They do receive matching contributions, and will need to rely on Social Security for some of their retirement income.
I retired last year at 55...now all I do is drink beer, date younger women, remodel my casa, drink beer and FReep!
RE: “I retired last year at 55...now all I do is drink beer, date younger women, remodel my casa, drink beer and FReep!”
I retired two years ago at 57 (forced out, actually) — all I do is drink tea, eat M&Ms, date younger men and play online all day! FR is fun, too, especially in an election year!
thank you, mr. campbell.
ATTAGIRL!
Will you marry me?
I have a serious question. Let’s say someone has enough cash to stop working and be self-supporting, but doesn’t have enough years on the job to retire with medical coverage. So, now what??
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