Traditional retirement is a thing of the past for most Americans. The days of one person getting a job and working there until the day they retire are long gone. Furthermore, we have experienced market crashes where many have seen their investments plummet, we’ve had record foreclosures, double digit unemployment, underfunded 401k and a bankrupt social security. With all the ugly economic factors and the idea of traditional retirement seems to be out of reach is an early retirement remotely possible?
Photo by chairman monekoAnything is possible, it just means that you will have to use a different investment strategy now than in the past if you plan to retire early. For example, two things that you’ll need to rethink are pension plans and social security. As mentioned earlier these two vehicles are not going to be available for the majority of Americans. Thus, some new strategies may be investing in a self-directed IRA, frugal living, and hard work.
What Is Early Retirement?
Traditionally we have defined an early retirement as lying in a hammock on the beach, playing golf all day or traveling abroad. Today, many people are redefining what it means to retire. Retiring early is evolving to getting up every day and doing what you want out passion and desire rather than necessity and obligation. It’s not as much about having a million dollars in the bank as it is about creating financial freedom to fund a particular lifestyle. Everything else is just icing on the cake.
Most people today would be happy just to escape the rat race of a 9-5 job and start their own home based business. An early retirement can also show up in the form of downsizing and extreme frugality. What people are seeking is what early retirement can give them which is more freedom, mobility and flexibility. Early retirement doesn’t mean not working anymore.
Conclusion
Early retirement is an alternative strategy compared to working until your 65 at a traditional 9-5 job. Even in today’s economy its still possible to retire early as long as you have a written plan and start early. In a nutshell you are giving yourself options about your retirement that few workers seriously consider.
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