Retiring early is pretty much the dream, the goal.
But can you do it? Well, certainly! It is possible, but there there are always things you need to make sure of before moving forward.
So if you're considering early retirement here is an explanation of things to keep in mind.
What this really all comes down to is do you have enough money to retire? Because you're emotionally invested in the answer to this question this may feel like an extremely overwhelming and confusing question to have an answer to, but the truth is that it's all just math.
There are straight forward answers to this question, so you'll want to take a step back and look at it objectively.
The first thing you'll want to look at to determine this is how much money you actually need, so we start with what your yearly budget in retirement is.
When I figure this out I liked to make a list of my normal, monthly expenses, and then a list of ones that come up over the year, and add them together.
So, will you have paid your mortgage off by then? How much are property taxes? Other things to keep in mind include travel, entertainment, classes, holidays, etc.
Then you need to see how many years you plan on being in retirement.
You'll want to plan for living to approximately ninety five years of age, if not a hundred to be safe.
This does sound like a long time but unless you have a medical condition convincing you otherwise, it's better to have saved a lot than be eighty years old and broke.
Once you have the total amount you need to live on in retirement look at your investments, the amount you've saved, your annual return rates, and decide whether you'll be able to do that.
If not, you'll want to keep working and saving for a while longer.