In part one of “How to Retire Early,” we focused on the need to reduce expenses and control debt. Doing so can create the foundation for a retirement plan by making money available for investment.
Consider all sources of income. Typically, retirement income comes from a combination of an employer pension, personal savings and Social Security income. Compare what you are eligible to receive with what you will need.
If you have a shortfall, consider all of your options for making it up before you retire. You may decide to work part-time. It you have a marketable skill, you may even be able to develop a base of business that provides you with enough income to meet your needs without dipping into your retirement savings for a few years. Or maybe you have space you can rent out to produce more income. (more…)