Do you want to retire early? You’re not alone. Many Americans dream of retiring in their 50s or even 40s. Early retirement can give you the opportunity to travel, explore new hobbies or even pursue a second career.

Unfortunately, early retirement can be a challenging goal. According to a Gallup poll, more than 50 percent of Americans are concerned about having enough money to retire at all, let alone at an early age.1

If you plan ahead and stay disciplined, however, you can potentially retire early. Below are three rules to remember as you develop your early retirement strategy. It’s important to create a plan that’s unique to your specific needs and goals. A financial professional can help you implement the right strategy for you.

Be prepared to compromise.
Retirement planning requires some level of trade-offs and sacrifice. If your plan is to retire early, however, you may have to make substantial cuts to your current standard of living or your future retirement plans.Remember, typical retirees may need to fund their expenses for 20 years or more. If you retire early, that time span could extend to 30 or 40 years. You will need to accumulate a sizable amount of assets to fund those expenses, and you’ll have to be thoughtful about your spending once you enter retirement.

Consider which sacrifices you’re willing to make now and in the future to preserve your savings. Perhaps you could live in a modest home and maintain a minimal budget for entertainment and dining out. You could look to downsize in retirement or even move to a more affordable area of the country. Keep a tight budget so you can maximize your savings.

Stick to a tight budget.
Your first several years in retirement could be your most challenging from a financial perspective. When you retire, you may have more money and more free time than you’ve ever had. It can be tempting to fill that time with costly activities such as shopping, travel and new hobbies.

It’s important to enjoy your retirement, but make sure you have a precise spending plan so you know how much you can afford to spend. If you spend too much money in the early years, you may not have assets left to cover health care, long-term care or even basic living expenses in the later years of retirement. A budget can be a powerful tool to help you rein in your spending.

Consider part-time or seasonal work.
Retirement is your time to enjoy an open schedule free of commitments. You may not think that work has any place in your retirement plans. However, a part-time or seasonal job can help you generate income that could minimize your need for withdrawals from your savings. That could help preserve your assets so you have plenty of funds later in life.

Consider a job that’s aligned with your passions and interests so you can still enjoy your retirement. For instance, if you like golf, perhaps you could work seasonally at a local course. If you have a specialized skill, maybe you could consult part time or give lessons. Keep an eye out for flexible, enjoyable work opportunities. They could be the key to making your early retirement a success.

Ready to plan your early retirement? Let’s talk about it. Contact us at MasterPlan Retirement Consultants. We can help you analyze your needs and implement a plan. Let’s connect soon and start the conversation.

1http://news.gallup.com/poll/210890/americans-financial-anxieties-ease-2017.aspx

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Investment advisory services offered through MasterPlan Retirement Consultants, Inc. a Registered Investment Advisor in the state of Georgia. Insurance products & services offered through Fricks and Associates, Inc. MasterPlan Retirement Consultants, Inc. & Fricks and Associates, Inc are affiliated companies.
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