People often retire when they reach the age range of 60 to 65. However, some people want to retire a bit earlier and enjoy a comfortable life in retirement at 50. But to do so, you need to be able to afford it. Here are some retirement planning tips that will hopefully help you achieve that goal.
Start Your Retirement Planning Early
If you want to retire at 50, you better start planning early. Planning early for your retirement will help you save for retirement more effectively. You could take advantage of superannuation contribution strategies as soon as you commence working. You may also want to contribute more than the maximum amount your employer provides. Increasing your contributions will help you earn increase your retirement investments. That way, you can enjoy a more comfortable retirement. However, that depends on your financial situation.
Try to save as much as you can before retiring. For example, if you have any non-retirement accounts and start planning early, you can also use that money to save for your retirement in conjunction with your superannuation fund. If you want to retire early, you will have to work smarter than you thought.
Minimise Your Debt
If you aim to retire at 50, you should look at the amount of debt you carry. The more debt you have, the less money you will have for your retirement. Start paying down your mortgage as soon as possible. That way, you will have more money to invest for retirement.
Once you pay your mortgage off, it’s also a good idea to stop taking out additional debts. For example, you should stop taking out new credit cards unless it’s absolutely necessary. Of course, if you want to buy a new car next year, then you can take out a car loan, but don’t take out a new credit card too.
Downsize Your Home
If you bought a bigger house when you started your family, it’s time consider a downsize when the kids leave nest or stop being home so often. You can downsize your home to a smaller one if you want to retire early. That way, you can save money on your housing costs and potentially reduce or pay out your mortgage. If you want to retire at 50, you should save as much as possible for your retirement.
When you downsize your home, you also look at smart investments to reduce your utility bills long-term. For example, you can switch to a more energy-efficient heating system. You can also install a more energy-efficient air conditioning system.
Make the Right Investments
You can use the money you save from your home to invest in other areas. If you want to retire early, you will need to find different ways to make money when you stop working. Investments can be a great way to do so. By putting money aside in a suitable investment mix, you can receive dividends and asset growth – creating income to fund your retirement dreams.
Examples you could research include high-yield bonds or stocks in companies with excellent growth potential. It’s always wise to diversify your investments, so you should try to invest in different areas. This way, you can protect yourself against any risks. It’s also important to find a reputable financial planner to help you make the right investment decisions.
Are you dreaming of an early retirement?
You can follow many strategies if you want to retire early. It all depends on your finances and your financial situation. If you want to retire early, you should plan early. You should also try to save more, cut down on your expenses, and find ways to earn extra money. If you follow these tips, retirement at 50 might be a possibility.
Plan for your retirement with the help of Central Coast Financial Planning Group. We are financial advisers that offer retirement financial planning services in Australia. We’re here to help you manage your investments and assist you in making sound financial decisions. Book a complimentary meeting today!
DISCLAIMER: The views expressed in this publication are solely those of the author; they are not reflective or indicative of RI Advice Group’s position and are not to be attributed to RI Advice Group. They cannot be reproduced in any form without the express written consent of the author. This information (including taxation) is general in nature and does not consider your individual circumstances or needs. Do not act until you seek professional advice. Newcastle Financial Planning Group, Central Coast Financial Planning Group, Sydney Wealth Advisers, Coastal Advice Port Macquarie and Coastal Advice Ballina Byron are subsidiaries of Coastal Advice Group Pty Ltd which is a Corporate Authorised Representative of RI Advice Group Pty Ltd, ABN 23 001 774 125 AFSL 238429.