How To Retire Before Social Security
If you are wondering how to retire before Social Security, the process requires you to make a dedicated commitment to saving money every month. It does not matter if you are contributing to a retirement plan at work or saving to buy investment property, if you want to retire before Social Security you must not deviate from your strategy. You might have to change the allocation of your current investment portfolio to bolster your annual rate of return.
- If you want to retire before Social Security, you will need a list of long term goals. Saving money is one thing, but determining how you will spend it is another issue altogether. If one of your goals is to have a vacation home before Social Security begins, decide how big you want it to be. The cost will be considerably more if you want your second home to be at a resort, so consider the location carefully. One of your goals should also be to create generational wealth, so you can help provide for your heirs. Any assets you acquire will help you to achieve this goal.
- Analyze your existing investments to see if you are on track to achieving your goal. If possible, increase the amount you are contributing to your retirement plan. If your employer offers a 401k, make sure to take advantage of it if the plan is viable. Do not be overly conservative in your portfolio allocation or you may limit the growth of your investments. Try to find a middle ground between an aggressive and conservative approach and monitor your portfolio to make adjustments as necessary.
- Consider getting a part-time job, if that is feasible. Working harder now will help you achieve an early retirement. You do not want to work so much that you become exhausted, but the more time you sacrifice, the greater your odds of being able to enjoy a leisurely life before Social Security. If your current employer allows existing employees to also perform other duties on a part-time basis, you can consider exploring these as a way to increase your income.
- Try to cut down on your monthly expenses. Lifestyle changes can help you retire before Social Security. Every dollar you save will increase your monetary assets. Determine what things you can do without and begin to trim some of the fat. This can be anything from excess entertainment spending to expensive vacations. The deeper you cut, the more you will add to your investable cash.
- Consult with an investment professional. They will be able to help you figure out the best way for you to retire before Social Security. If you have an idea of the amount of money you want to save, an investment plan can be put into place that will help you reach your goals. Down the road, you may decide that you no longer need the services of a specialist. Regardless, they will have put you on a path that will help you realize your goal of an early retirement.