by James Apple

Created on: March 04, 2007   Last Updated: March 13, 2007

Early retirement is possible for anyone who starts saving and investing early. By starting early you can greatly increase your investment returns because your investment earnings get re-invested again and again until you retire. The best place for long-term retirement investing is a stock market index fund, such as the S&P 500 index from Vanguard. This fund, and other index funds like it, consistently beat 90% of professionally-managed funds.

If you have a late start in planning for retirement, there are still some things that you can do. First, secure a good place to live where you will not have to worry about rent or mortgage payments once you retire. Consider moving in with a family member or moving to a place where you can afford to own your own home. Alternatively, mobile homes can be very affordable. After housing, medical care is a very important thing to consider. It is important to establish yourself as a long-term employee at a company that has a good health plan for retirees.

Regardless of when you are starting to plan for retirement, the first thing to do is to eliminate all debt. Save every penny that you can from your expenses and use it to pay off any debts that you owe, high-interest debts first. If you have trouble coming up with money to pay down debts, I strongly recommend that you start writing down every time you spend money, and reviewing it at the end of the week to decide how to best use your money.

Whether you are starting early or starting late, there is no secret to early retirement. Retiring early is an accomplishment that can be achieved by planning for housing and health care, and consistently saving and investing one's earnings.

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