From Yahoo Finance.: 2025-06-28 10:01:00

Many individuals desire an early retirement, whether by choice or necessity due to health or job issues. Planning for early retirement is crucial, even if you intend to work past the standard retirement age of 66 or 67. Expert-recommended moves can help the middle class prepare for early retirement.

Eliminating high-interest debt, particularly credit card debt, is essential for those aiming for early retirement. Middle-class individuals should prioritize paying off high-interest debt to avoid hindering wealth-building opportunities. Addressing debt is key to a successful early retirement plan.

For a successful early retirement strategy, saving for retirement from the moment you start earning money is vital. Building wealth across different accounts, such as tax-deferred, tax-free, and taxable brokerage accounts, provides flexibility, control, and tax advantages for future withdrawals.

Flexibility in accessing funds is crucial for early retirees, especially before age 59½. Having a mix of accounts allows for strategic withdrawal planning regardless of future tax rates. Properly managing investments from active 401(k) plans and consolidating them can lead to cash incentives and better financial organization.

In early retirement, flexibility is more important than the size of your living space. Being open to changing living arrangements can support your early retirement plan. Downsizing, relocating, or keeping costs low can provide financial freedom earlier in life.

Determining the magic number needed for retirement involves calculating a withdrawal rate based on expected expenses. For early retirees, a more conservative withdrawal rate may be necessary due to a potentially longer retirement period. A personalized approach to retirement planning goes beyond financial calculations, focusing on building a meaningful life in retirement.



Read more at Yahoo Finance.: 6 Smart Ways the Middle Class Can Retire Early