by Suzanne Rose

Created on: June 28, 2010   Last Updated: April 08, 2011

Many would like to retire earlier.  There are certain steps you can take to make this more likely, including the following strategies.

Invest in retirement accounts starting at a young age

When you start investing very early in tax advantageous retirement accounts, then the money can compound over time.  As soon as you can afford it you might want to consider such a method.  A lot of employers will also match the funds that you put in, which might be like “free money” and can help you retire earlier.  When putting your money in the accounts be very careful about where you might invest it.  Some people put them in high risk ventures, which may go up, but then may come crashing down making it harder for you to retire early.  There are a lot of low risk items that can still give you solid growth through the years and might build up enough to let you retire earlier.

Choose a career, which allows for earlier retirement

There are certain careers from which you can retire earlier and still do okay.  One such career is the military, in which you can retire earlier and still get valuable benefits.  Also, if you find a job that is more lucrative such as that of a physician then you might have enough money to retire earlier.

Try to earn more money

There are different things that you can do in order to earn more money, which may allow you to retire early.  For instance, you could do some freelance work such as writing, graphic design, photography or something else.  You can also get a second job to supplement your income and build a larger nest egg.  Also, think about smart ways to invest your money that are not too dangerous.  For instance, instead of having the money you don’t need sitting in low interest savings accounts, place them in certificates.

There is one very important thing to consider when thinking about early retirement, and that is health insurance. For some it may be difficult to get private insurance at that stage or life and you might be too young for Medicare.  New opportunities will be emerging in light of the new legislation that will roll out in the next few years, but you might want to make sure that you do have insurance. 

Early retirement can be a reality.  The above tips may help you figure out how to achieve this lofty goal

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