early retirement
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Early retirement is not an unachievable dream. The retirement time depends on what you want to do now and on a pension. It is not easy to retire early. But nothing good is easy to achieve. Make use of the Financial Independence Calculator if you have what it takes (and that does not necessarily mean a specific amount of money).

Can You Retire Early?

There are three main ways to an early retirement:

  1. making savings when working;
  2. cutting down on expenses when working and after retirement;
  3. combining both ways.

What amount do you need to save? How drastically do you have to reduce your expenses? How early can you retire? How to start saving for retirement? The matter is that all the answers are interdependent – change one and all the other will change as well. Financial Independence Calculator can help you find out when you could retire. Continue calculating till you create a solid plan that helps avoid financial emergencies that derail your retirement.

Take Advantage of Financial Independence Calculator

Peter Levels, a serial entrepreneur, and IT nomad, created a free tool that counts how fast a specialist can retire if he moves to another country. For example, a 37-year-old freelancer with $3,000 monthly allowance (after tax) in the U.S. can secure a comfortable old age not earlier than at the age of 64.

But if he moves, to Monterrey, Mexico or Curitiba, Brazil he can stop working at the age of 41 or 42. The result of the calculations is based on the average cost of living in the city, taking into account the cost of living, communications and other basic needs. Of course, in the third world and developing countries, it is noticeably lower.

To calculate the age at which you will be able to retire in different countries, you need to enter your income and savings, the annual return on the investment portfolio, taking into account inflation (if any), and the average spendings per month. It is also necessary to specify the current age and, if desired, the city of residence. After that, the calculator will build a curve on which you can clearly see in what cities you can start idling in 10-11 years.

Let us recall that Peter Levels launched website in 2014. This is a guide to the cities for the so-called IT-nomads or nomads who like to live abroad, working remotely. The positions of cities on the site depend on the cost of living, Internet speed, and weather conditions.

Here is an example:

how much do you need to retire
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Retirement Calculator.

Early Retirement Is Not Equal to No Work Income

More and more employers work throughout retirement. It blurs the lines between work and resignation. Many people who start getting an early retirement, quit their long-term job and then either:

  • Get a job they really enjoy – perhaps with a lower salary;
  • Work part-time or consult – such work gives them freedom;
  • Stop working for some period completely and then return to full- or part-time employment.

Avoid Debt

It’s not always a bad idea to accumulate debt. Yet, if you plan to retire early, you have to save every penny.

If you do need a car loan, early retirement is not the best decision for you. If you want to retire earlier, think about buying a highly reputable car used, with cash.

Credit cards are a good way to keep track of your spendings. Yet, paying interest rates can make a huge hole in your pocket.

Get Out Of Debt

Invest Wisely

If you want to retire early, you should raise enough money to fund your retirement period.

To have a sustainable retirement income, you have to save adequately, invest wisely and always reinvest all returns. Your aim will be to earn a good rate of return (5% would be fine) and pay low fees on all the accounts.

If your savings are adequate and a rate of return is reasonable, you’ll be able to take withdrawals equal or less than your investment returns. It will not decrease your savings.

Summarizing the Above

If you want to stop working sooner, chances are you can. It depends on how determined you are, how well you invest, cut expenses and save money. Try out a Financial Independence Calculator to reach your dream.