How to Pursue an Early Retirement Before 50

If you’re hoping to be able to retire before the age of fifty, or, well, ever, it’s time to get serious about the investments you’re making. You have to know what money you have and where it’s supposed to go. It might seem like a pipe dream, or purely imaginary to be able to retire, but there are some ways which can help. How can you pursue an early retirement before the age of fifty?

Use the Roth Conversion Ladder

The Roth Conversion Ladder is a smidgen confusing, but if you’ve got a 401K, it’s important to understand it’s available. Basically the idea is to avoid taxes by adding your money to a 401K…but this has an issue. If you take money out before you are sixty, the government takes ten percent off the top. This, obviously, you’d like to avoid. If you instead choose to use the conversion ladder, Modest Money explains that you would move money from a regular 401K, to a Roth IRA 401K, and then be able to convert that to money you can use in about five years!

Invest in Real Estate

Investing in Real Estate is a tried and true method of building wealth. According to J Bixler Inspections, getting a property inspected before closing can help you avoid major issues. Research can determine what areas locally are growing fiscally. You want to find a great property management group to help you as well. This is like finding an excellent personal assistant to help you manage all of your time and money. Trying to do everything yourself with multiple properties is too complex and time consuming.

Know What You Need

In order to consider retirement, you need to know what you specifically will need in order to retire. This means a good amount of math, knowing what you have both in savings and investments, and knowing what you will need later on. If you plan to retire early, you will need more money saved than the average couple who retire at age fifty five, according to Synchrony Bank, and need just around 400k to last them their remaining years.

With people living longer, and having a higher quality of life for a longer period of time, you want to be able to have a good buffer of funds which can last you past your eighties. Save your time for things you enjoy, and find an assistant. Use the Roth Conversion Ladder, and build up that savings!

Read this next: How to Get a Better Price for Your Home When Selling