How to retire young? First you stop working

How to retire young?

You start by stopping working... sound oversimplistic?

Let us make the assumption that you would rather retire and do what you want to do than continue to work.

We, most Americans, have been brainwashed by the huge financial companies... remember those that were too big to fail?

They would like for you to believe that the only way that you are going to retire is to buy their products and strictly follow their advice... which always includes buying more of their products... in order to retire.

Who is retiring them or you?

Early  retirement by you means the loss of a client for your retirement planner.

Have you ever heard your planner say..." Bill, you and Sally should retire right now while you're still healthy enough to do what you want to do when you retire"... I didn't think so.

There are only four scenarios when you retire young

How to retire young? There are only four scenarios:

  1. You retire and love it and live happily ever after.
  2. You retire, do not change your spending habits, and have to return to work
  3. You retire, live on less money, and live happily ever after.
  4. You retire, live on less money and supplement your income in order to stay retired.

That's all that can happen... the worst is reason number two... Even if you retire and fail, nothing will ever take the experience of being retired... doing what you want to do... once you have the taste of retirement you will find ways to return to retirement or stay retired.

Think about it...

Do you think you'll be able to enjoy retirement more at age 45 or 65?

There are not many people if any that are in better physical shape at 65 versus 45.

You will never hear from your financial planner the importance of time in retirement.

You will be encouraged to continue to swap years of your life to grow your retirement nest egg.

The fallacy in this type of thinking is, even if you do accumulate a large amount of money, you will have less years... and poorer health...to enjoy that money.

The hammering all of our 401(k)s took in 2008 should serve as a reminder that there are no guarantees that your nest egg will continue to increase.

There are no guarantees except death and taxes.

How to retire young? The arguments against early retirement...

We have been brainwashed by the financial advisor industry. Their mantra, backed up by billions spent on advertising, is that you'll spend the same amount of money when you retire as when you work.

Take a look at the picture of us on our sailboat... do you see any suits, ties, work dresses, new car(s), lawns that need mowing, country club dues to pay, vacation expenses (you are permanently on vacation)...or stress requiring medical bills? I don't think so.

Yet most retirement planning is based upon accumulating a big hunk of cash and withdrawing 4% a year... that 4% be anywhere from 80% to 100%, of what you currently spend.

How to retire young? Nike has it right... just do it.