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Thinking of Retiring Early? These Real-Life Tips Can Help You Do Just That

November 23, 2020 · Retirement Life
A woman painting in a bright, plant-filled art studio, pursuing her hobby.
A woman explores her passion for painting in a bright studio filled with plants and arched windows.

Don’t forget that savings are crucial

Investments can help you grow your portfolio and secure a comfortable retirement but as an early retiree, you don’t really have the same time to see your money multiply like people retiring at their full retirement age. This makes it even more important to save as much as possible, every chance you get.

Paul Novell, 46, who decided to retire at 38 and travel the country in an RV, with his wife, admitted that even if they hadn’t opted to put all of their savings into bonds, they would have still been capable of retiring early.

Consider semi-retirement

Early retirement sounds amazing to many people. But if you’re not exactly ready to quit your job this very minute, there are still things you can do to get a taste of retirement life. You can gradually transition your way into early retirement, in what certified financial planner Robert Brokamp calls semi-retirement. It puts less pressure on your retirement portfolio while providing you access to various benefits like health insurance.

A couple planning a trip using a map and a compass on a wooden table.
A smiling couple studies a world map in a rustic cabin, planning their next exciting travel adventure.

Live off passive income in retirement

Passive income could be the perfect way to live comfortably in retirement. From investing in dividend stocks to pension payouts or cash flowing rental properties, there’s no need for you to live paycheck to paycheck.

Jason and Julie Buckley retired at 43, leaving Nottingham, England to pursue their traveling dreams. Their income from rental properties, pension benefits and advertising and book sales on their blog, allowed them to live their dream life without ever touching their savings. The couple says they make around $18,400 per year and are more than happy with their life.

Find some inspiration from these 10 Brilliant Passive Income Ideas to Make Easy Money.

 

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