Financial Security & Early Retirement

Most people like to believe that they will be able to retire years before they reach full retirement age. Although this is a nice thought, it's not very realistic unless you commit to solid planning early on.

One of the first things you should decide is at what age you would like to retire. The second thing you'll need to know is how much financial security you expect to have. A good financial planner can help you estimate how much you'll need to retire at your target age.

With this number, you can now begin crafting a savings and investment plan. Keep in mind that this is only an estimate and also that with an early retirement, you'll have to plan to live longer off your nest egg.

Once again, a financial advisor can help you determine the best way to invest your money in order to achieve your retirement goals. In most cases you will find that if you save and invest wisely, you can have a secure financial future that will extend beyond retirement.

But what if the prognosis is not good? What if you are not able to reach your savings goal by your target age?

There are a couple of alternatives. First, look at how close you are to your goal? Would a few more years make a difference? If so, then maybe you still retire early, just not as early as you had originally planned.

If your retirement fund would carry you through retirement but for a small gap each month, then consider working part-time instead. Maybe this is when you get that job as a travel agent or go to work as a substitute teacher. Working part-time gives you some flexibility to choose a career because you find it rewarding, not because it pays the bills.

Also remember that you can continue to save after you're retired. This, combined with a part-time job might be all it takes to make that early retirement dream a reality.