Many are asking when is the right time to retire. Some will say, 50, 55, 60. We all have different opinions.
Retirement is a stage that must be planned early. The problem is that most people ignored the importance of preparing for it. They begin to realize it when it’s too late. For better understanding, here are five signs which you can retire early.
1Saved Money in Multiple Baskets
If you planned for your early retirement, you would have invested and made it grow over time. Diversify your money so that you can prepare for your retirement days. Diversifying is making multiple pools of income.
Why do we have to do this? Just think about what life maybe if you’ll get retired. When you retire, you stop working. This means no paycheck anymore. But remember, bills don’t retire. That is why as early as possible you have to have money to cover up your bills. Compute everything as you plan so that you can estimate how much you will need. And oh, don’t forget about inflation. What your $1,000 can buy now will be less in 10 years’ time.
2All debts paid!
If you retire early with debts to pay, you’ll be burdened financially. It will affect your lifestyle. Instead, you will get worried and stressed.
It is better to clear first all of your debts then make sure that you have prepared enough savings. With this, you can decide when you are going to retire. You will have more flexibility in budgeting and spending your savings.
3You must be in good shape and good health and have a plan to cover your healthcare costs
This is what happens in reality. Some retired early without realizing their healthcare costs. If you did not calculate this one, it will sabotage your retirement.
It is also difficult if you retire early. Imagine, if you retire early like at the age of 55, you will still pay taxes. Remember, you do not have any access to Medicare until you reach 65. For ten years, you will have to cover those expenses. That would be tough.
You have to consider your health. Because if you are in poor health, or suffering an illness, it will cost you. Probably, you will use your retirement savings.
So before you decide to retire, you have to figure out how you are going to pay for your healthcare and how much it will cost you. Will your health insurance be able to cover these?
4Financially planned the life of a retiree if you plan to retire early
Some think that if they retire, they can rest and enjoy a life that they have never had before. Well, that depends.
If you have financially planned your retirement stage, you can live that life. You can do the leisures you’ve missed in your younger years.
It is about mapping out your monthly cash flow before you retire. Consider the uncertain things that might happen like emergencies such as unexpected costs you will face in your home or in your car if you have any.
You have to utilize your Social Security benefits as you plan your retirement including your personal retirement.
It’s better to organize everything before you decide.
5I Am Ready to Retire!
You will get to the point of having goals when you retire and as time goes by, you are preparing emotionally for it. We have different situations and retirement depends on it.
Why emotionally? It’s because you have worked for long years. Leaving your job is different and you will face another adjustment. You are going to ask yourself what your goals are when you retire early.
The clearer the vision, the easier for you to decide when to retire for good.
The other way around, if you are still doubting and worrying, the retirement stage is not that clear enough for you, then it’s not time yet for you to retire.
It is crucial to decide on retirement. You really have to make it clear. Especially on your financial aspect. You really have to prepare for it and consider writing off your cash loans from top moneylenders. Because if you don’t, it is not only you who will suffer. It will also affect your whole family.
Will you let that happen?