Planning for an early retirement?

Do you want to retire in your late fifties instead of your mid sixties? Planning for an early retirement is easy to do with just a few simple things. This article will help you understand if you would like to retire early and what you need to do in order to retire early.

Why do you want to retire early?
Before you just retire, make sure you really want to. A lot of people get bored after they retire because they are no longer in the workforce and this can lead to feeling unwanted at times. Always make sure you have other things to look forward to in retirement so you have something to do. Many seniors choose to travel with their free time, others volunteer, some go abroad in study or even in service to their church. Always look for things that will fill up your free time when you retire so you aren't sitting around doing nothing.

Retire when you are ready
A lot of people retire because their friends have retired or their family members have retired. Just because the people around you have retired doesn't mean you need to. Always plan out your future and know what you need financially in order to survive. This may mean you need to work for a few extra years and that is just fine. Retire when you are ready, not when other people start suggesting that you should retire.

Check your retirement
Before you can retire, you need to know where you stand financially. Never retire with debt. It doesn't matter how great your IRA or 401(k) plan is, you need that to plan for future needs, not to pay for your debt and financial mistakes in the past. You can always work for another year if you need and make a nice income. A lot of people retire, only to go back to a lower paying job in a few months because they have debt. Knowing where you stand financially ahead of time will help you to properly prepare for retirement and to avoid financial woes in your later years.

How much are retirement homes?
Do you want to stay in your home when you retire or would you like to move to a retirement community? These communities are great because they will take care of all the yard work and other duties that can wear on you like shoveling snow and mowing the lawn. Living in a retirement center is also nice as there are several social activities you can get involved in so you continue to stay active and you stimulate your mind.

It is also important to find out how much assisted living centers cost. You need to make sure you have plenty of money set aside in the event that you have a problem with your health and you may need to live out the remainder of your years in an assisted living center.

Financial Independence
When you retire, you no longer need to "work for the man" and worry about clocking in daily and "scheduling" vacations around your job. You can pick up and leave whenever you want. Do you have the financial independence to do so? What type of retirement income can you expect? You should get social security benefits, but this isn't enough money to justify retirement. You also need to focus on your 401(k), IRA, and pension plans that will allow you to have this type of financial independence.Don't get involved in risky stock market investments a year or two before your retirement. Play it safe with mutual funds, CDs, money market funds, and other moderate risk investments that will give you a decent return and won't wipe out your retirement so you are left with nothing.