I really want to retire at 55. YES! I am certain. I know retiring at the age of 55 is a great decision. There are many decisions I made this year. Some of the biggest decisions this year is retiring at the age of 55. Before I decided to stop working at the age of 55, I think about how much money do I need to retire successfully when I hit my preferred age to retire. Is $1,000,000 enough money to retire happy, rich and comfortable?
A reader if Retirement Planning IQ asked a question via email last night. Danny from New Jersey send me an email message asking me when I will stop working. He also wants to know, how to save money that can be use as his retirement funds.
Related: How to Retire Early
I Decided to Retire at 55
I still so many years to save and invest money for my retirement. I don’t want to lose time. If I will going to retire at 55, I will take as high risk as I can because I am still young. I want to take advantage of retiring early. If I will retire at the age of 55 and I am still alive at the age of 85, therefore I still have more time to spend for my loved ones.
I calculate how much money needed to to retire at 55, and I only need to save and invest few hundred dollars per month to acquired enough money to retire at the age of fifty five.
Why Retire at 55 is a Good Idea?
For me retiring at age 55 is a good idea. Here are some of the reasons why;
- More quality time to spend with my loved ones.
- Time to feel relax.
- More time to discover new things.
- More fun and excitement.
Imagine there are two individuals that are talking about the retirement. John is a 30 years old guy working in a popular company and the other one named Sheila is a secretary at aged 35 years old. John and Sheila wants to retire at 55.
I Save and Invest to Retire at 55
Since I already know how much money money exactly do I need when I retire, I have a plan how to acquired that specific amount of money. Since I am still young, I will save and invest money in a high risk type of investment.
- I invest money in a mutual fund equity type. I will keep on investing each month within specific period of time.
- I also invest in the stock market.
And most of all, when I reached my target earning asset for my retirement, I will transfer my retirement funds in a low risk types of investment like bonds or CDs. Or the combination of high and low risk investment. The idea is I should have enough money to work for me during my retirement. At age 55, the money I saved and invest should work for me without any effort on my part. I think, that’s one of the important plan that required actions. How to make the money work for a retiree.
The early you save money and invest money for your retirement, the early you can retire. Also, if you save and invest early, you can meet your retirement financial goal.
What about you? Do you have the plan to retire at 55 or you will retire at age 65? It is only you who can understand the effects of not having a planning for retirement. So, stay tuned to Retirement Planning IQ for more advice, tips, ideas and useful articles and opinions about retirement planning.