Despite being years away from the average retirement age, it’s the dream of many hardworking individuals to achieve an early retirement.
You may have heard of the FIRE movement – Financial Independence, Retire Early.
FIRE is a movement of people dedicated to extreme saving and investing, in a way that allows them to retire far earlier than they would have otherwise.
One of the most important elements of the FIRE movement is saving enough money to support you until you have access to your superannuation savings. Since you can only withdraw your super once you reach the preservation age (between 55-60), it’s important to consider ways to boost your retirement savings so you can best prepare to retire, maybe even earlier than expected without compromising your financial independence.
Different people have various reasons behind their need to retire early and, whatever your case may be, here are four tips that may help you make informed decisions so you can push for your retirement plan with greater peace of mind!
Early Retirement: Is it Possible for You?
Tip #1: Consider Creating a Solid Financial Plan
Besides relying on your super and other pensions, it can help to have a dedicated financial plan that takes all your other expenses and savings into account.
With a financial plan, you can clarify your goals and ensure you stay on top of your plans despite the unexpected complications life can often throw!
From managing your retirement, budgeting, investments, and everything in between, a reliable financial planner may be able to improve your relationship with your money and push you in the right direction toward early retirement.
Tip #2: Skyrocket Your Super Balance
Every Australian is entitled to their superannuation, but instead of wishfully relying on just the Super Guarantee, many Aussies make extra contributions to take control of their super.
For instance, you may be in a financial position to make a salary sacrifice arrangement that helps boost your super balance while also saving you on tax! As a financial services practice with both financial planners and accountants in our team, we love helping people save on tax!
Tip #3: Diversify Your Investment Portfolio Wisely
The right investments can make it possible for you to strengthen your financial security without relying on your salary. This may be a critical element to making your dreams of early retirement a reality.
It’s important to note that investments also come with risks, so consulting with a professional financial planner may be worthwhile. They can support you in developing an investment strategy that takes into consideration your risk tolerance and ensures that you’re in line with your investment goals.
Achieving Financial Freedom and Early Retirement
The Association of Superannuation Funds of Australia (ASFA) provides some estimates for how much the average Australian might need to fund their retirement. However, this amount will vary for everyone and will depend on things such as your health, assets, and the kind of lifestyle you desire in your retirement years.
The key to reaching financial freedom earlier requires constant dedication and discipline, but the tips above and the expert guidance of a financial advisor can set you up for your dream of early retirement.
How Can 123 Financial Group Help You Retire Early?
123 Financial Group has been in the industry for more than 15 years, providing lasting financial freedom and support to people in Newcastle and the Hunter Valley.
Ready to retire early? Our experienced financial planning team can help you with investment advice, superannuation strategies and effective retirement planning to help you achieve your goals.
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