Early Retirement
Source-Pexels
The practice of leaving employment before the statutory age, especially on favorable financial terms.
I am sure your vision of retirement and my vision of retirement aren't the same. Retirement is completely different for each person because of how people view and perceive work, money, and time. With that being said, the one commonality is that "every person should live the life they want and not a life they feel they are forced to live."
That quote sums up my view on retirement because I enjoy working, find meaning in what I do, and truly feel like I bring a strong value and purpose to those I work with (colleagues) and for (my students). I have no desire to retire right now, however I want to know that I am giving myself options for later on in my life. You never know when your perspective on life (YOLO) will change, when you spark a new passion, or even when you have outgrown your current employment so it is good to have options for if/when those things happen!
I read a long time ago that when you save or invest your "younger self" is setting up your "older self" for success and that concept stuck with me. That is all retirement really is. Some people set themselves for it up sooner and some later. Ultimately, the choice is yours on what retirement looks like to you.
What does your retirement look like?
That quote sums up my view on retirement because I enjoy working, find meaning in what I do, and truly feel like I bring a strong value and purpose to those I work with (colleagues) and for (my students). I have no desire to retire right now, however I want to know that I am giving myself options for later on in my life. You never know when your perspective on life (YOLO) will change, when you spark a new passion, or even when you have outgrown your current employment so it is good to have options for if/when those things happen!
I read a long time ago that when you save or invest your "younger self" is setting up your "older self" for success and that concept stuck with me. That is all retirement really is. Some people set themselves for it up sooner and some later. Ultimately, the choice is yours on what retirement looks like to you.
What does your retirement look like?
Teachers and Retirement Plans
I came across this eye-opening article about retirement years ago and ever since I have made it my mission to make the strongest financial decisions. I wanted to create my own financial freedom and more importantly break the chains of what so many teachers have experienced before me when it comes to retirement and planning. I highly recommend giving it a read and make it a strong point to reflect on your own planning. Start asking questions yesterday!
Photo By: Lisa Haney
The 25X Rule
(How much you will need)
The 25X Multiplier Rule refers to your desired annual income (how much you want every year in retirement) by 25.
Example: You want to make $40,000 a year then you would take 25x that number and you would need $1,000,000
Example: You want to make $40,000 a year then you would take 25x that number and you would need $1,000,000
The 4% Rule
(How much you can withdrawal from Your Portfolio)
The 4% Rule basically refers to the Withdrawal Rate of your money.
Example: If you have $100,000 you would be able to take 4% ($4,000) and your money would last more than 25 + years depending on portfolio allocation.
Example: If you have $100,000 you would be able to take 4% ($4,000) and your money would last more than 25 + years depending on portfolio allocation.
How much do I need for retirement
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