So you wan to retire at 50 or maybe 55, and can’t bear the idea of working past 60. Well, if you are in either a boring or a stressful job, I don’t blame you.
But look, if you have a good salary and want a good retirement income you will need to have a nest egg of about $750,000. Of course, it should be in a tax-free or tax-deferred retirement fund like a 401 k or Roth IRA or similar. If you are not saving in one of these, you are wasting money.
Also, you need to make sure that you are not spending a lot of money in fees to maintain that account – over 30 years, if you are paying too much you could actually lose $20,000-$30,000. Giving up coffee at Starbucks will not save that sort of money.
In reality, you will need to save a large chunk of your to retire early, or make a fortune gambling on the stock market, or maybe have a part-time job. Some high flyers are able to save 50% of their salary – they are usually earning over $150,000 a year.
Here are two more ways to save a lot of money:
1. Move to a smaller house and put the money you save in mortgage payments straight into your retirement fund
2. Run an old car, and walk or cycle short distances. Over 10 years, you can save over $50,000 this way.
These two strategies, will certainly help you save a good deal more money than you are now, especially if you make sure that you are not overcharged by your fund managers.
Of course, you need a good fund manager – one who will put you in funds that will do well in good times or bad.
Finally, you can consider swapping the job you do not like for one you would enjoy. That way you would not be in such a hurry to retire!