How Early Can you Retire?

How Early Can you Retire?



Someone rightly said that “Retiring is inviting a world of new adventures ” but the question is; are you fully prepared to undertake this leisurely adventure? Or is it a phrase taken vaguely? We will seek to answer that question using certain points explained below.

Age of Retirement

One factor to put into consideration is the age at which you intend to retire. In real life, many people foresee that they will retire quicker than they actually do and uncertain issues, such as health constraints or changes in workplace (Re-structuring, demotion etc.), tend to come on the way and hence resulting in an early retirement.

And remember the earlier you seem to retire, the bigger bank balance you will need to last throughout the life after retirement. It’s very crucial to prepare for unseen events that could force you to bid farewell to your work life.

Life Expectancy

It is generally accepted that you can’t predict how long you will live, but there are a few factors that may give you strong hints and with which you can plan your days.

You should consider your family background in terms of health and life expectancy—how long people in your family have lived. This can be seen in how long your ancestors have lived and the ailments that they have suffered from if any. Also, your own health comes into question here.

After that, you would have to take into account the fact that life spans are becoming longer with the developments in medical sciences. Nowadays, there are chances that a good number of people will live up to 100 years or even longer. Now calculate the amount that you need to survive through these years

Health care needed in the future

Another major thing to consider is the amount of money involved in health care. These days, this cost is rising at a much faster pace than the general inflation, and very few employers are generous enough to offer health benefits to the retiring people.

Care in the long-term is another factor, and this expense could surely dip into your savings account and even lead to filing for bankruptcy if the need for care is elongated and constant. Therefore, factoring the costs involved in health care after you leave your work is very important.

Your current lifestyle

Now what you should be thinking about while thinking of retirement is lifestyle that you want for the rest of your life. Would you travel frequently or you want to get involved in community service? Would you sign up for an expensive club membership or is there any hobby that you want to take up? Your honest answer to these questions can aid you in deciding what surplus costs your dream retirement will require.

Many enthusiastic people expect that they would like to work part-time in retirement. However, if this is your intention you will still need some funds to enhance your retirement lifestyle.


If you have analyzed and accounted for every certainty while constructing a savings fund, then forget this vital factor as you will have a good buffer to head into retirement. Inflation lowers the value of your savings from year to year, heavily decreasing your purchasing power over the years. It is crucial and vital for your savings to be on pace with inflation.

And the Sum-up of all the above

After considering all these factors, you should have a mirror image of how much you need to earn and save for your retirement.

But after you calculate your retirement savings fund and apply all the factors to how much savings you have currently, you will be able to analyze how much is required from your end to save each year and reach your savings goal. The most important thing is to make a goal and then strategize how that will help you to reach it.

Remember, the earlier you initiate savings and invest to reach your goal, the better you will realize your dream retirement.

Have a happy retirement ahead!

The Best Books On Investing

The Best Books On Investing

One of the stand out habits of almost all of the best investors in the world is voracious reading. Ask them if you could and most will give you the same response. This goes a long way in showing that reading has a great correlation with success. Ff you are going to be a successful investor then you must put dedicated a chunk of your time to reading and learning. You could almost say that books are more important to an investor than even the capital he seeks. Embedded in them is the information he requires to turn his capital into long term profits.

As much as it is important for young folks to get investing as early as possible(the earlier you begin, the quicker you can retire), it is equally expedient that they avail themselves to the wisdom they can gain from other peoples experiences. These experiences read in books ensure that they do not make the same mistake others have made. Warren Buffet, for example, was said to read 1,000 pages a day when he was first starting to learn. Ben Graham read so much that he translated a whole Spanish novel to English.

In this article, I have compiled a few books which are seen as the backbone of several successful investors today. There are over a million investment bestsellers, so it is important that you do not restrict yourself to this list alone.

Rich Dad Poor Dad and Best Books on Investing

1.  Rich Dad, Poor Dad by Robert Kiyosaki(2000). This is a classic that is on the book shelf of almost every successful investor. In this book, Kiyosaki exposes the reader to his own view of the divide between the rich and the poor, stating that the poor work to earn money while the rich work to learn. Furthermore, he emphasizes the importance of financial literacy as the major key to financial independence, something that has somehow eluded about three-quarters of the world’s population. The writer then states that the educational systems, using his resident country America as a case study, prepares kids for a life of continuous work rather than educate them on how to create wealth from investments. He explains that understanding finances goes beyond learning accounting in school to understanding real life vocabulary and how they apply to everyday investments.

The Essays of Warren Buffett and Best Books on Investing

2.  The Essays of Warren Buffet by Warren Buffet (1997). In this culmination of essays, the writer considered by many to be the most successful investor of his day exposes the reader to several topics relating to corporate America and shareholders. He highlights the interface between the shareholders and the companies as well as the series of processes involved in improving a company’s enterprise value. The essays include several discussions like tax matters, mergers and acquisitions, accounting policies, accounting and valuation, investing, finances, corporate governance and more. Most of all, Warren Buffet explains his own recipe for successful investing over the years, making young readers have access his own investment secrets which will definitely provide skillful guidance to anyone who wishes to follow suite.

The Intelligent Investor and Best Books on Investing

3.  The Intelligent Investor by Benjamin Graham (1949). Popularly recommended by Warren Buffet as the best book on investing ever, this book might seem old but its values are still extremely relevant to this day. The writer is considered the “father of value investing.” The book teaches the reader the perks of the stock market, how to analyze stocks, and the basic history of the stock market. He gives an in depth explanation as to how to properly manage portfolios and then compares the stocks of several companies to back up his point.

Think and Grow Rich and Best Books on Investing

4.  Think and Grow Rich by Napoleon Hill (1937). Written during the great depression, this book has since sold over thirty million copies and still counting. Based on several research studies conducted by the writer on the lives and principles of several successful investors, the book provides immeasurable insight into the psychology of success of such individuals as well as their living principles. It emphasizes that these investors were successful because of simply experience and knowledge in the field.