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Are You Ready For An Early Retirement?
By plrprousers | April 11, 2009
It’s something that every baby boomer has dreamed of at some point – the early retirement. Those dreams of a Florida retirement, or days spent traveling the world with a loved one is an awfully tempting thought, but many of us brush off the notion of an early retirement simply because we don’t think we’ve saved enough. Yet if that little voice is still nagging in the back of your head to take your retirement savings and run, here are important factors that will help you to decide if you’re ready for an early retirement:
You’re Near Your Retirement Goals. If you’ve done your homework, you know exactly what your retirement age is, and what you need to save once you’ve reached that age. However, don’t wait until your 65th birthday to assess if you’re ready for retirement. Book a meeting with your investment advisor and assess exactly where you are in your retirement planning. If you’re near your goal, your advisor may be able to adjust your investment options to make up for an early retirement.
This is undoubtedly the most important factor in determining if you’re ready for an early retirement – if your savings and investments are nowhere near close to being ready to support you, don’t even think about it!
You Have A Strong Portfolio. With the recession in full swing, who can really say that they have a strong portfolio full of safe investments? Yet if you’ve met your retirement goals and have a strong portfolio (think half invested in stocks and the other half in safe investments like CDs, bonds, etc.) then your investments will likely be a steady income stream later in your retirement.
You’re Mentally And Emotionally Ready. If your finances are in order, you may be itching to give that retirement speech right away – however, before you jump the gun, consider the emotional and mental consequences of an early retirement. You might find that you’re not stimulated without your career, or your friends and loved ones are too busy with their own jobs. Assess what an early retirement means to you; it could be overwhelmingly fulfilling or just might cause you to pull out your hair in boredom!
For more information on smart retirement planning, visit www.kenhimmler.com, the IRA and 401K experts!
Authored by Kenneth Himmler, Sr.
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