Retirement

Emma, 32 and a mother with young kid, writes: “It wasn’t until I discovered personal finance blogs that I realized early retirement was possible without a multi-million dollar property portfolio.” But circumstance changes when when life throws you a curveball, and early retirement isn’t just possible. Emma explains the alternative to early retirement and how to semi-retire in your 30s. The main ingredients to semi-retire are as follow: Clear debt and adjust to a frugal life. Find multiple sources of income with an affordable housing. Lastly, accept and embrace social status change. (moneycanbuymehappiness.com)

The Daily Mail pieces together the details from personal finance blogger Jeremy Jacobson and his wife Winnie Tseng from their blog Go Curry Cracker. Three years ago the couple quit their job with enough saving to travel the world in their 30’s. What’s their secret? “There is really only one thing that determines how quickly you could join us on the road: Savings Rate.” The couple was able to achieve a 70% saving rate after down-sizing the lifestyle and shunning consumerism. They built up a sizable investment portfolio after 10 years of frugal living. And when their investments became large enough and began returning decent dividends, they retired. Now their nearly one-year-old son Julian also joins along on the journey abroad. (dailymail.co.uk)

Personal finance writer Dan Caplinger says: “Most Americans rely more on Social Security for their income than on any other source. That makes it absolutely crucial to avoid making mistakes with your benefits. Yet with so much confusion about how Social Security works, it’s easy to fall into a trap without even realizing it.” He shows us 3 key Social Security mistakes to avoid:

1. Thinking there’s a one-size-fits-all strategy for when to take benefits
2. Ignoring potential benefits for your family
3. Not keeping up with law changes

(fool.com)

The median savings accumulated by workers ages 30 through 40 is $30,000. That is still a far cry from a comfortable retirement. But with self determination and financial planning, there are 10 guaranteed ways to retire rich. They include spending less than you earn, saving early as possible, minimize your tax and maximize your income potential. (moneytalksnews.com)

Glenn Carter writes: “This series of posts teaches seniors and retirees how to leverage the digital tools available to them to live more economically and independently. The key focus of this article is income supplementation and independent living through the sharing economy… So what is the sharing economy exactly? The sharing economy is about how we capitalize on abundance. Specifically, the sharing economy is composed of hundreds of online platforms that enable people to turn otherwise unproductive assets into income producers. This include homes, cars, hobbies, pets, spare space, parking spots, clothes, consumer items, and much more.” So join in the sharing economy and earn some income during retirement. (thecasualcapitalist.com)

J Money over at Budgets Are Sexy urges that you ignore all financial advisors and business marketing regarding how much you need to retire that don’t factor in spending. After all, each of us is unique with different needs and wants. To derive the magic number you need to retire, you should calculate it based on your spending. “At the end of the day it all comes down to your expenses. And without knowing that no one can tell you how much you’ll need to hang up the job when it’s time.” (budgetsaresexy.com)

From an interview with the Bill Fold, Alan Lastufka describes how he started out with $30,000 in debt at 25. After selling his share of the business, he was able to retire at 32. At the low point Alan stopped paying his student loans. His life turned around when he learned to manage his personal finance that set him on course toward early retirement. After selling his company in 2014, he paid off his mortgage in full. Without any debts he keeps his living expenses low, about $25,000 per year. Now that the dividend payouts from his investment portfolio total over $36,00 per year, Andy is able to retire at 32. (thebillfold.com)

Rob shares his story on madFIentist about how he and his wife with 13 kids will be able to retire in 13 years. Rob is trying to achieve financial independence on a single income while raising all those kids. Rob is 49 and his wife is 46 with 13 kids ages 2 to 24. They have always been frugal and pay of all debts except the mortgage. Food is their biggest monthly expense, and they mainly shop at Aldi to minimize the expenses. Beside his main job, Rob also mows lawn during the summer to fill up their IRAs. Overall, he has been able to save 35% on a single income. Good luck to Rob and his family on their way toward financial independence. (madfientist.com)

The early-retirement movement is getting popular as more people are exposed to the concept of reaching financial independence as soon as possible. Thomas Smale wrote on Entrepreneur, “those in the early-retirement movement do share one common trait: They typically adopt a contrarian mindset that produces a fascinating lifestyle, spending, and retirement planning insights.” Here are 5 lessons from people who retired at 40:

1. They understand the math of financial independence
2. They spend less, but are just as happy
3. They invest early and over decades, not years
4. They avoid high investment fees
5. They buy cash-flowing assets

(entrepreneur.com)

According to an interview for PBS television’s Frontline, over 900 people in any given 1,000 person retirement plan will retire in poverty or run out of money before death. The average 65-year-old retiree can expect to have two more decades ahead in retirement. Daily Finance show you 5 retirement planning mistakes and how to fix them.

1. Mistake: Focusing solely on your rate of return. Solution: Create a diversified portfolio.
2. Mistake: Forgetting about taxes. Solution: Have a tax plan for investments and assets.
3. Mistake: Thinking the start of retirement marks the end of planning. Solution: Review finances and goals every year.
4. Mistake: Saving too little. Solution: Start now and automatically increase contributions with every raise and bonus.
5. Mistake: Saving too late. Solution: Stay in the workforce or look for guaranteed income streams.

Retirement planning is one of the most important financial goals you’ll undertake. Don’t make the mistake of not taking retirement planning seriously enough. (dailyfinance.com)