Saving for early retirement is wise for many people who are not happy in their jobs. There are many people who need to know the best way to retire early because they have found their chosen profession is not nearly as gratifying as they thought it would be. People who are not willing to go find another job should think about how they can retire right now. The best way to retire early is to plan for a completely different retirement than what most people experience.
Saving For Early Retirement
This savings plan does not have to keep people int he same house and same lifestyle they are accustomed to. The best way for people to make sure that they are going to be able to retire early is to work with a broker who knows the plan.
Most people will plan to retire to a place where they can live simply for as long as they like. There are many people who would prefer to live on a small island or out in the wilderness so that they can enjoy a quiet retirement. The best thing about retiring early is that people can make these simple life choices, change their lifestyle and possibly start something new. There are many people who will start new businesses or find ways to make money that are much more gratifying.
Working with a broker is the only way for people to save all the money that they need for their retirement. The people who are going to work with a broker will find that the broker can handle all the planning for their retirement. Retirement brokers are the people who track the accounts for the retiree, and they will help the retiree have the money they need to retire when they want to.
The broker can use the expected retirement date to make sure they will have enough money in the account when their client wants to retire,
Someone can retire early and find out that they can live simply while their broker plans for more aggressive investing. The plan that the broker comes up with will allow someone to handle all their expenses, make more money in retirement and live comfortably in retirement for years to come.
Also, the broker can make sure that the retiree has all the money they need for the projects they want to do when they are retired. People can use their retirement account as their startup money for a new venture, or they can use the money from the account to get that little cottage they have always wanted.
Most people want to retire early, but they do not have a plan for doing such a thing. All that most people know is that they want to stop working. A broker can show people how to make all the money that is needed for an early retirement, and the broker can guide the retiree through their early retirement. A brand new life is waiting around the corner.
Russell Armstrong is an Internet Marketing Coach, Social Media Marketer, and Affiliate Marketing Specialist. CEO and Founder of Armstrong Enterprises International, Inc.. An Internet Based Company on the premise of helping people change their lives. www.facebook.com/RussellDArmstrong mylifechanger.net
Article Source: EzineArticles.com/expert/Russell_D_Armstrong/1324518
Watch more How to Manage Your Money videos: http://www.howcast.com/videos/169336-How-to-Set-Up-a-Retirement-Savings-Account
It’s never too early — or too late — to start saving for your retirement.
Step 1: Know your rights
Realize that even if you are already contributing to your company’s 401(k) plan, you are free to establish an individual retirement account, or IRA, as well.
Step 2: Think about a Roth IRA
Weigh the advantages of a Roth IRA. Taxes are taken at the get-go so you can withdraw money tax-free in your golden years. You may remove money, penalty-free, before age 59.5 for certain reasons, like buying a home, you may keep your money in it as long as you like, and you may continue paying into it past age 70.5 if you have earned income.
Step 3: Consider an IRA
Consider a traditional IRA, which lets you defer paying taxes on the money you invest until you start withdrawing it at retirement. You can’t contribute to an IRA past your 70th birthday, and you must begin taking distributions six months after that.
To qualify for a Roth IRA, your modified adjusted gross income can’t exceed a certain amount. Check the Internal Revenue Service website (at “irs.gov”:http://irs.gov) for current limits.
Step 4: Investigate providers
Find an IRA provider to set up your account. Options include banks, brokerage houses, mutual fund companies, credit unions, and insurance companies. Banks and credit unions put money in CDs, insurance companies park your IRA dollars in annuities, and brokerage and mutual fund companies let you pick stocks, bonds, and funds.
Step 5: Ask about fees
Before picking an IRA provider, ask about fees and commissions.
Step 6: Diversify your investments
Diversify your investments so that you’re mixing stocks (both U.S. and foreign), bonds, real estate, and commodities. Check out the index funds offered at brokerage houses; they offer low-cost diversification.
Step 7: Learn about self-directed IRAs
If you’re financially savvy and want to be a real estate speculator or help finance a new business, consider opening a self-directed IRA, which allows you to grow your retirement fund in nontraditional ways. To open one, search online for “self-directed IRA custodians.”
Step 8: Make investing automatic
Make contributions to your IRA automatic by having them withdrawn from your bank account or paycheck.
Step 9: Put in the maximum
Put in the maximum allowed every year. You’ll thank us later.
Did You Know?
Thirty-nine percent of Americans have an individual retirement account, according to the American Association for Retired Persons.