5 Tips to Plan for an Early Retirement

Estimated reading time: 2 minutes, 40 seconds

During these unprecedented times, it’s not uncommon for individuals to retire earlier than expected. For some, the opportunity to retire early is a dream. However, others may have been laid off late in their career or due to declining health and even medical disabilities, it may be a different story.

Planning for an early retirement is vital. It’s important to build a portfolio that can accommodate an extended period of withdrawals. The old saying, “Those who fail to plan, will plan to fail,” definitely applies here. Although, you can’t always predict when an earlier-than-expected retirement will take place, you can put in the research and effort to create the best plan for you. Throughout this article we have featured several tips for establishing an early retirement plan.

1. Estimate Your Retirement Expenses

If your goal is to retire early, it requires a lot of planning and discipline. To start, it’s important to review your expenses. Simply, take a closer look at your monthly budget. Once you retire, the ideal scenario is that you have no remaining debt hanging over your head but if you are still paying off any debts, be sure those payments are factored into your budget.

2. Max Out Your Retirement Accounts

It’s smart to research and plan to contribute to your retirement accounts each year. There are annual limits to how much individuals can contribute, and certain contributions may be tax-deductible, depending on the account owner’s income. While advice to save for retirement is certainly sound, few people actually consider what saving more could mean for their future. Why stop at saving 10%? Why not save 15-20% of your income? Financial success is a choice.

3. Diversify Your Portfolio

Diversifying your investment portfolio among traditional or alternative assets could potentially lessen the long-term damage of a downturn. With a Choice IRA, you can do just that! Choice by Kingdom Trust is our most recent offering and clients have the ability to hold traditional and alternative assets in a single account. Before you invest, it’s important to do your research or even hire a team of professionals to ensure you fully understand your investment options.

4. Invest in Your Financial Education

Financial literacy is critically important. What you know influences how much you earn. Take the time and educate yourself every chance you get. Several educational options include enrolling in online courses, reading and researching. Be sure to reference the Kingdom Trust Resource Center on our website for information regarding account types such as self-directed IRAs and the variety of asset classes that are available on our platform. Knowledge is power and a key component in planning for a successful retirement.

5. Work with a Financial Advisor 

It’s always beneficial to have a second pair of eyes review your portfolio and to help establish your retirement goals. How you manage your income and assets will vary with each stage of life. A trusted financial advisor can help prepare you each step of the way.

If you have questions about a potential investment option in your Self-Directed IRA, contact Kingdom Trust today. While we are unable to give investment advice, we can let you know if an investment is feasible in your account type and if it is one Kingdom Trust can hold on its platform.