For Mark Roberts’ Use: After years of hard work and dreaming about your retirement, who could blame you for wishing it could start now? And if you’re like a lot of people, you’d even be willing to make some major life changes if it meant you could give up your job now. According to one poll, American workers would be willing to take the following actions if it meant they could retire early:
- 38 percent would sell their homes and rent instead
- 34 percent would move out of the country
- 52 percent would relocate to a less expensive part of the country
Depending upon how much you have saved for retirement at this point, along with many financial and lifestyle factors unique to your situation, it is possible that you could retire early. This is especially true if you’re willing to make some sacrifices or compromises along the way, such as the ones listed above. But before you get too attached to the idea of an early retirement, you should also consider the (not so fun) consequences of these actions.
If you’re considering selling your home, keep in mind that the real estate market can fluctuate unpredictably at times. Home values still haven’t rebounded from former highs, so you might not make as much money off of your home as you need. Waiting just a few more years for values to rise could net you thousands more.
Moving overseas is a popular retirement option right now. But of course you will incur significant moving expenses, and you should fully investigate the tax implications. This is a bold move that requires careful planning with a financial advisor.
Out of the three above options, moving to a part of the country with a lower cost of living is probably the most accessible one. Perhaps it would even be worth selling your home. You will still need to investigate the tax structure of that state, and plan for your healthcare expenses. Remember that retiring before age 65 means you won’t be covered by Medicare yet, so you should adjust your budget to account for a health insurance policy. And, like moving overseas, moving to another state can be expensive.
If you’re considering any of the above strategies, call us for a consultation before making any drastic decisions. We can help you analyze your plan, identify any possible pitfalls, and come up with solutions that might allow for an early retirement.