Retire soon? Here are a few things to keep in mind!
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If you've been like many older adults in the past year, you may have opted for early retirement. According to a Bloomberg article, there are more than three million people at the age of 55 considered retiring early last year. That has a lot to do with the fact that the pandemic has caused unprecedented job losses. In addition, seasoned professionals have also considered prioritizing their physical and mental well-being through retirement.
Regardless of your reason for early retirement, you may not have one complete plan long-term. But that doesn't mean you can't make the most of the years ahead. Keep these five tips in mind as you hang up your boots and start living on your terms.
Develop bankable skills
Retiring doesn't necessarily mean you won't be able to acquire new skills. You have all the time in your hands developing new ones that can help you make a living on the side. If you are not used to being inactive all the time, you should learn new skills in web design, illustration, or even create an urban garden. There are tons of lucrative opportunities out there for you, so spend time educating yourself and using your newfound knowledge to increase your retirement expenses.
Consider scaling down
Would you like to pay less household expenses? Has your current home grown massively in equity over the years? Today's retirees are best placed to move into smaller homes, rent condominiums or townhouses, or invest in a beach house. Now would be the best time to sell your current property and use the extra money to live in a cozier and cheaper location. When sell your house, look for a real estate agent who can help you set a good asking price and make the property stand out in today's real estate market.
Increase Your Savings
The downside to early retirement is the fact that you may not have saved enough to fuel your retirement. Sure, you have full control over how much you've saved throughout your career, but will that be enough to meet your retirement goals? Instead of spending all of your money on travel, consider setting aside a good amount for an investment that generates passive income. Stocks aside, you can use your IRA plans on cryptocurrencies and real estate funds. With all that money you should put it to work.
Stay within your goals
Early retirement is not a trend that you want to follow. It is a decision that must be weighed carefully as there are even greater uncertainties ahead of us. The least you can do is make gut decisions. You don't know what's ahead of you in retirement so make sure you set and commit to specific goals. Don't let certain fads fool you into spending beyond your means. Securing the future is just as important as enjoying this phase of life.
If you have retired early, it is important to maximize your time and resources in order to achieve your goals. Take advantage of the tips above and make early retirement the best decision you have ever made!
