If you’re in your mid-thirties, just trying to climb the career ladder, find your path in life and deal with toddlers at home, chances are you’re not thinking about retirement. But maybe you should be. The truth is, early retirement isn’t just for heirs or inventors who create a sponge in a smiley face and make millions.

More and more Americans are strategically retiring at an early age and with careful discipline and preparation. If you are looking to retire early, you’d can’t depend on the 401K options that may (or may not) be offered through your employer. Especially if you’re running your own business, you need to prepare for it on your own.

Prepare for Retirement Early

Take a look at some of the advice given by the Forbes Finance Council on how to prepare for retirement by the time you’re 40.

  •     Acquire income-producing properties and assets only.
  •     Choose a multiple-family home instead of a one-family home, as the rents will offset any costs of home ownership.
  •     Purchase automobiles you can keep for at least seven years.
  •     Acquire quality stocks that pay consistent dividends.
  •     Instead of planning to do nothing, plan for a rewarding role as a mentor or teacher.
  •     Set up automatic transfers to put a portion of your paycheck into savings each pay period.
  •     Start investing heavily in your 20s when your wealth will have more than two decades to reap the benefits of compound interest.
  •     Have specific goals for a smart savings and investment strategy.
  •     Be tax-centered. Use taxable, tax-free and tax-deferred investments

What about Vesting?

Vesting is a legal term that refers to giving a future payment, asset or benefit. Vesting is often an incentive benefit for employees to perform well, work hard, and remain with the company. It’s the hypothetical carrot dangled in front of the hard-working employee. Vesting gives an employee rights to assets over time, according to a vesting schedule. If an employee stays with the company long enough to reap the rewards of vesting, it can be very profitable and may make future retirement much easier. However, it depends on what the employer is offering and what the payment schedule is. Many vesting schedules don’t allow employees to withdraw any money until they reach retirement age.

Make the Most of Retirement

Early retirement doesn’t have to just be a pipe dream. Small goals and smart decisions over time add up to big benefits later. However, retirement doesn’t have to mean sitting on a beach doing nothing. Sure, that might be nice for a while, but it would get boring eventually. Instead, use retirement as the opportunity to reach your potential, use your skills for good in the world, and find something you enjoy doing without the pressure of financial obligations.

Source: https://www.forbes.com/sites/forbesfinancecouncil/2017/09/26/ten-effective-ways-to-prepare-for-early-retirement/#732622961f49

https://www.investopedia.com/terms/v/vesting.asp

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