Woodstock Financial Advisor – Third Act Retirement Planning —

How To Retire Early – The 3 Ways People Enter Retirement Early

How To Retire Early

Answering the question of how to retire early really comes down to two things: your offense and your defense. For the purposes of this article, we are going to call your offense your income and your assets, while your defense is your expenses.

If you’re a sports fan, you’ve probably watched some football, maybe the NFL or maybe college football. And so you know sometimes there are these teams whose offense is just a juggernaut. They put up 40 plus points a game, their quarterback will throw for 4,000 yards in a college football season, and it’s just remarkable what they’ll do. Or maybe they’ll have a running back that’ll rush for 1,700 or maybe even 2,000 yards. And you know that this team is just going to move the ball up and down the field. Their plan is to score a bunch of points in the attempt to outscore their opponent. But maybe they don’t have that good of a defense.

On the other hand, we’ve seen teams that just have this stellar defense. They don’t do a whole lot on offense, but they still win games by keeping their opponents from scoring more than 10 or 12 points a game. They keep their opponent out of the end zone. And so there’s a saying that says defense wins championships.

That saying can also be applied to answer the question I get a lot: how to retire early.

Before I address the questions how to retire early, I highly recommend you watch this video I recorded that goes through how to avoid running out of money and increase your retirement income. You are also invited to set up a short 20 minute free no cost and no obligation Retirement Ready Success call by clicking here. In this short call we will

  • go over where you are now,
  • where you want to be,
  • and I will share with you some of the strategies I use with my clients to help them achieve financial freedom and peace of mind.

I’ve been in this industry since 2000 and have been advising people about investing and preparing for retirement for the entire length of my career. Including advice on how to buy stock and pick the best discount brokers. And what I’ve seen when people are retiring in their early 50s is that most of the time, they’ve saved quite a bit of money. However, there are other ways to retire early, and when we’re saying early, we’re saying before the age of 65.

Here are the best ways to retire early:

  1. Save what you’re making now. There are many ways to do this inside of 401(k)s and IRAs to reduce your income tax liability right now. You can also put money into Roth IRAs, which is another excellent way to reduce taxes long-term, even in brokerage accounts, after you’ve maxed out your retirement savings options.
  2. Lower your expenses in retirement. One of my clients, who was very successful in corporate America, says he wishes that he could do it all over again. He wouldn’t have had debt coming into retirement. So if you can pay off your car loans, mortgages, and any other type of debt that you have, that’s a big plus, and an easy way to reduce your expenses without drastically affecting your lifestyle.
  3. Develop a plan for retirement income. One good way to do this is with rental properties. If you have those, they can provide a strong income during your retirement. Of course, stocks, bonds, annuities, all can also be used to produce income, and so can private equity.

Finding a creative way to produce income from your retirement is an excellent way to be able to retire early. If you don’t just take your money and stick it in an annuity or bonds, you could buy a passive business that’s going to produce income for you. Maybe you’re able to get more income with your homes. Maybe rental homes will provide enough for an early retirement, or perhaps you have the funds to buy a triple net lease with a restaurant. They can pay you more than bonds, annuities, and dividend stocks. Being able to produce a good income is always very helpful.

Those are the three ways that I have seen people retire early in the 20 plus years that I’ve been president of this business. It takes a tremendous amount of discipline. Most of them had been working with financial advisors throughout their careers. A good trusted financial planner will help people make these decisions, navigate the markets, lower their taxes, and make sure they get the proper insurance and have the proper wills and trusts in place. It’s important to work with a holistic planner to make sure that you’re making wise decisions if you would like to achieve that coveted early retirement.

Click here to watch my Free Video Presentation that Reveals…

How To Avoid Running Out Of Money In Retirement AND Potentially Increase Your Income In Retirement… By Making ONE Simple Change To Your Finances! You will learn:

  1. How one simple change to your finances can increase your retirement income
  2. How one simple change to your finances can help you avoid running out of money
  3. How to do all this without needing to invest more money or spend more time on your finances.

Click here to see how much a wealth manager cost?

Or you are also invited to set up a 20 minute free no cost and no obligation Retirement Ready Success call by clicking here. In this short call we will

  • go over where you are now,
  • where you want to be,
  • and I will share with you some of the strategies I use with my clients to help them achieve financial freedom and peace of mind.
Scroll to Top