The Early Retirement Hack: Why You Should Start Before You Start

by Flavia V. McCaughey | Finance, Business

Retirement. It’s the time in one’s life where lounging on hammocks, watching sunsets on the beach, and finally having time to binge-watch all those shows you missed becomes a reality. But here’s a new perspective: why wait until your hair is gray to enjoy it? That’s right, you don’t have to wait until retirement to actually enjoy the perks of retirement. So let’s dive into retiring before you actually retire.

Before you start picturing yourself sipping piña coladas on a beach at 35 (though, hey, that’s not a bad vision), let’s break this down. The key is to start early. 

Think about it this way: You’re fresh out of college, eager and ready to tackle life, however, loaded with student debt. Retirement seems like a distant speck on the horizon, right? Wrong! It’s never too early to start saving, investing, and mapping out the plan to retirement.

Why, it is never too early you may ask?

Here are 3 simple reasons:

1. **Compound Interest**

Let’s start with the most important reason of all. Compound interest is the concept where your money  grows while you sleep. The earlier you start saving it, the bigger it gets. It’s like planting a money tree and watching it sprout while you binge-watch Netflix or Hulu.

2. **Financial Freedom**

Imagine this: You wake up one day, roll out of bed, and realize you have enough money stashed away to live life on your terms. No more boss breathing down your neck, no more Mondays that feel like they are dragging. That is financial freedom, and it tastes sweeter than an ice cream sundae.

3. **Health and Happiness**

Let’s not forget the health benefits of retiring early. Stress? Adios. Burnout? See ya never. Studies have shown that early retirees tend to be healthier and happier. That’s why we call it life after career at FR Investment Group. And who doesn’t want a healthy life after their career? 

Now, I know what you’re thinking. “But how do I even start?” Fear not,

I have some helpful tips:

1. **Budget Like a Boss:**

It all starts with a budget. Track your spending, cut out the unnecessary stuff, and transfer those funds to your savings or into your retirement fund.

2. **Invest Wisely:**

Don’t just let your money sit there gathering dust. Make smart investments. Stocks, bonds, real estate—take your pick. Just remember to diversify and watch those investments.

3. **Emergency Fund:**

Life happens. Cars break down, roofs leak, and unexpected medical bills rear their ugly heads. Build yourself a sturdy emergency fund to weather the storms without dipping into your retirement savings.

4. **Stay the Course:**

Rome wasn’t built in a day, and neither is a retirement fund. Stay disciplined, stay focused, and don’t let short-term setbacks derail your long-term goals.

So, there you have it. The early retirement hack. Start early, invest wisely, and before you know it, you’ll be living in a way that sets you up to pursue your retirement goals.

retirement-woman-finances

Keep in mind retirement isn’t just a destination – it’s a journey.

Why wait until you’re too old to enjoy it? Start today, and thank yourself tomorrow. Work hard for your money today and make your money work hard for you later. Cheers to living life on your terms!

Securities and advisory services offered through LPL Financial, a registered investment advisor. Member FINRA/SIPC

This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors or will yield positive outcomes. Investing involves risks including possible loss of principal. Bonds are subject to market and interest rate risk if sold prior to maturity. Bond values will decline as interest rates rise and bonds are subject to availability and change in price. There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk. 

Thank you for reading:

The Early Retirement Hack: Why You Should Start Before You Start by Flavia V. McCaughey

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Flavia V. McCaughey
Vice President at FR Investment Group

Flavia V. McCaughey is the Vice President of the FR Investment Group. Ms. McCaughey earned a degree in Business Administration with a concentration in Finance, and a Minor in History from Boston University in 2020. Having always been interested in business and finance, she began as an administrative assistant at the firm in 2015. She became a Managing Director after two years before working her way up to Vice President. She holds a Series 7 and 66 securities registrations through LPL Financial. Ms. McCaughey is registered to service clients in CT, MA, NY, RI, and VT. In addition she holds a life insurance license and health insurance license in MA and CT, as well as, the AHIP Medicare Certification and Long Term Care Certification.

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