There’s no universal sum of money that guarantees a comfortable retirement, especially if you’re retiring in your 50s. But, if you want to retire successfully, there are some basic guidelines that everyone needs to follow.
- If you want to retire in your fifties, use Silvur to determine your Retirement Score.
- Live lean—below your means—and invest the money you save toward your retirement.
- Test-drive your retirement budget for six months before you retire. Adjust it as needed.
- Build your passive income strategy to support your early retirement. Remember, you’ll get penalized on early withdrawals from your retirement accounts.
- Set up an emergency fund with enough money to cover six months to one year of expenses.
- Make it a priority to pay off your mortgage before retiring. A mortgage-free house will be a gold mine when you retire. Maintain it well. If it’s available where you live, investigate when you can apply for a freeze on property assessments.
- If you think you might want to live out your retirement in a different location, consider moving before retirement so it’ll be easier to obtain a mortgage. This also allows you to ensure you like the area you’ve chosen.
- Make a plan for health insurance coverage until you’re 65. Familiarize yourself with all parts of Medicare.
- Make or update your will. Appoint a healthcare power of attorney. Draw up advance directives including a living will and organ donation specifics. Check into pre-paid funeral plans along with long-term care and life insurance.
- Store important papers—wills, deeds, mortgages, investments, etc. — in one safe place. Tell a trusted family member of its location.
Retiring in your fifties is possible. But if you determine you’re not quite ready financially, it’s best to wait. Outliving your money is the worst thing that could happen in retirement, and you don’t want to be forced to find an income when you’re much older and infirm. Adept planning and budgeting are crucial to an early retirement. If after taking this course you find you’re truly in the clear, congrats! It’s time to enjoy an early retirement.