by admin | August 21, 2018 5:56 am
Early retirement is the ultimate dream for many people. You want to get out of the work cycle as early as possible and enjoy quality time with your partner, children, grandchildren, and friends. However, before you start thinking about early retirement, you need to think about how to build a retirement fund. Keep in mind that your financial needs won’t disappear when you retire. The biggest hurdle to your early retirement dreams is establishing your retirement fund. However, it is possible to save regularly over many years and accumulate a significant amount of money in your retirement account. Here are the top three ways to fund your early retirement.
This is an incredible way of funding your early retirement, but it may take many years to build up. The most common ways of earning passive income include investing in real estate, dividend stocks, or other types of investment. However, you need to remember the fact that you will not start earning passive income overnight. The most recommended way to build your passive income is to do it over a prolonged period. Pick an area and become an expert in that area for you to start earning passive income. For instance, you can decide to invest in rental properties since they tend to generate more revenue as the rent rates increase and mortgages reduce. You can also invest in the right dividend stocks to realize significant earnings every year.
Financial experts say that withdrawing from your retirement account before you attain at least 59 years is a bad idea. The explanation behind this reasoning is that the earlier you start withdrawing from your retirement account, the more difficult it will be to making your only savings last you for long. Therefore, you should think about part-time work that can help you raise more income before you decide that it is time to retire. You can also take a cash advance when things get thicker to avoid withdrawing funds from your retirement account. The cash advance can help you deal with emergencies as you wait for your payday. The bottom line is that early withdrawals from your retirement account aren’t a good idea since your retirement fund will be reduced.
Get Out of Debt
By whatever means, try to get out of debt since it pulls down your retirement savings. If you think that it will take you one year to get rid of it, do everything possible to ensure that you get free of your present debts and channel the extra income to your retirement savings account. Ditch that credit card and start living within your means. Keep in mind that the high-interest credit card debt may be eating a significant chunk of your income that you could have used to grow your retirement fund.
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