Have you thought about what’s important to you once you stop working full time and start your retirement years? We all have a unique set of circumstances that determine when and how we retire, and while Social Security says the full retirement age is 66, there’s no law that says you have to work until then.
Some people will work past that age and others will stop working before. We all know that retirement is expensive, so the best time to start planning is now. You’ll need to make sure you are prepared with enough savings, an understanding of Social Security benefits, and a plan for future health care costs and other expenses.
Want to retire early? One option to consider is joining the Financial Independence Retire Early (FIRE) movement, where followers dramatically reduce their expenses, seek ways to increase income, and invest heavily. The key is to live as frugally as possible while investing at least 50% of income. While this practice is extreme, there are different options depending on lifestyle and how strict of a FIRE strategy you want to adhere to.
While the FIRE strategy may not work for everyone, a key takeaway from this movement is the importance of having financial independence in retirement.
If you don’t retire early, your end goal should be to at least retire financially independent. In order to get there, you’ll need to look at what steps to take in order to have enough passive income to live the life you want.
Some tips to help you get there:
Cut your expenses: you need to spend less than you earn
Reduce your debt: you’re spending more money in interest when purchasing with credit
Get insured: having the right insurance plan eliminates the risk of a major set back
Start investing: Set your goals, look at how much time you have, and decide your risk tolerance
It’s never too early to start planning for retirement and letting the magic of compound interest work for you.
Not sure where to start?
Schedule a meeting with Noble Investment Services CFS Financial Advisor, Andrew Lewis.
Non-deposit investment products and services are offered through CUSO Financial Services, L.P. (“CFS”), a registered broker-dealer (Member FINRA/SIPC) and SEC Registered Investment Advisor. Products offered through CFS: are not NCUA/NCUSIF or otherwise federally insured, are not guarantees or obligations of the credit union, and may involve investment risk including possible loss of principal. Investment Representatives are registered through CFS. The credit union has contracted with CFS to make non-deposit investment products and services available to credit union members.