Let’s talk about one thing that everyone looks forward to: retirement. On average, most Americans retire between the ages of 62 & 65. But what if I told you that, by following these steps, you could have the potential to retire by 55?
Step 1: Save a High Portion of Your Income A key to retiring early is an early start, so don’t wait. At age 20, start saving 15% of your income.
Step 2: Consider making stocks the Majority of Your Portfolio Once you’ve saved a large portion of your income, it’s time to start investing it. Look into a financial advisor that can help you invest where it’s right for you so your savings has the potential to grow.
Step 3: Pay Attention to Tax Taxes can eat at your savings if you aren’t careful. Make sure you are choosing investments that are tax advantaged, like 401ks and IRAs. Also, see if your employer matches your investment.
Step 4: Monitor Your Savings Pay attention to the small changes in your portfolio so you can always know how much is in your accounts at all times. By keeping a close eye on your accounts, you aim make sure that number is on a steady incline.
We know everyone looks forward to retirement no matter what age they are. Following these steps may help get you there a little sooner.