To retire at 50, a person must live below his means and adhere to a strict budget, while also saving and investing a significant portion of his income. To establish savings, it is necessary to cut expenses and increase earnings. A retiree can increase retirement savings by getting less-expensive housing.
To retire early, an employee must invest wisely, creating a balanced investment portfolio with the right amount of risk and return. He should not invest his entire retirement income in a 401(k) or an IRA, as these have age restrictions on withdrawals. A retiree should adequately plan for private health care costs from retirement until the age of 65, when he becomes eligible for Medicare.
An individual can save on taxes by moving to a state with lesser taxes, such as Nevada, which has no state income tax, as well as lower sales and property taxes. This makes it easier for retirees with lesser retirement income to live comfortably.
A retiree must talk with loved ones and take their needs into consideration before retiring, and should plan for retirement activities to remain relevant within society. Be aware that life changes and that one might face difficult circumstances that force him to work again.
A retiree living in an ideal location can swap houses with others to save on accommodation costs during vacations. He can also reduce transportation expenses by using public transport.