The average American retires at about age 63, according to the U.S. Census Bureau. But what if you don’t want to wait until 63 or so? Can you afford to retire early?
Possibly- but it could be challenging. Still, you may be able to boost your chances by following these suggestions:
First, research the costs involved in early retirement. Will you downsize from your current living home? How will you pay for health care until you’re old enough for Medicare?
Also, you’ll probably need to boost the amount you invest in your 401(k), IRA and other retirement accounts. And you may need to adjust your portfolio mix to provide more growth opportunities- keep in mind that this may entail greater investment risk.
Here’s one more idea: Cut your debt load. If you want to retire early, you need to be dilligent about eliminating as many debts as possible.
And, most importantly, do everything early: Plan early, invest early and lower your debts early. Getting a jump on these activities can help turn your early retirement dreams into reality.
This article was written by Edward Jones for use by your local Edward Jones Financial Advisor
You can contact Joey at 1940 N. Jackson St., Suite 140, here in Tullahoma. 931-454-2435 or visit www.edwardjones.com.