{"id":1705,"date":"2022-06-16T18:29:41","date_gmt":"2022-06-16T18:29:41","guid":{"rendered":"https:\/\/blog.ark7.com\/?p=1705"},"modified":"2023-05-19T02:46:02","modified_gmt":"2023-05-19T02:46:02","slug":"all-the-numbers-you-need-to-retire-earlier","status":"publish","type":"post","link":"https:\/\/ark7.com\/blog\/learn\/in-depth\/401k-and-iras\/all-the-numbers-you-need-to-retire-earlier\/","title":{"rendered":"All the Numbers You Need to Retire Earlier"},"content":{"rendered":"
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Who doesn’t dream of hitting Retirement Beach as soon as possible? Trading traffic, watercooler gossip, and a micromanaging boss for endless amounts of free time, a glass of wine with lunch, and unlimited travel? Where do we sign up? The good news is, with a little bit of planning and preparation, you don’t have to wait until 65+ to retire. In this post, we’ll go over all the numbers you need to know when it comes to preparing for retirement so you can make retiring early a reality.<\/span><\/p>\n

Retiring early: how to do it<\/b><\/h2>\n

The primary factor determining whether or not you’ll be able to retire early is how fast \u2014and how much\u2014you save your money or <\/span>invest your money<\/span><\/a>\u00a0into\u00a0<\/span>income-producing dividends<\/span><\/a>.<\/span><\/p>\n

You’ll need to invest in a well-balanced and diversified investment portfolio geared toward long-term growth. One popular investment method that people use for retirement is low-cost index funds, especially for people who still have a while to go before retiring. The money can grow as the years pass by with minimal effort required from you.<\/span><\/p>\n

The closer you get to your planned retirement date, the more you’ll want to start shifting a small amount of your savings into a more liquid and safer asset type so you can access the savings without worrying about having to sell your investments and take a loss. You can do this with a year or two of expenses, but keep the rest invested and slowly shift it to cash as you need it, rather than taking out large lump payments at once. This will help your money continue to gradually increase.<\/span><\/p>\n

To save and invest as fast as possible, you should also aim to increase your income while decreasing expenses. Getting used to living on less will also allow your money to stretch much further when you’re retired since you won’t have erroneous costs to keep up with.<\/span><\/p>\n

To adjust your lifestyle and cut expenses to retire earlier, consider the following:<\/span><\/p>\n