Early Retirement Planning...
Do Dreams come True?

Virtually every employee dreams about early retirement some time during his or her career. Early retirement planning can make that dream come true.

There are many motivations for early retirement. You might hate your job. Or you might love your job, but want to live your passion, your dream.

Dream on, and it will remain a dream. Sit down and do some serious planning, stick to your plan, and your dream will come true!


Do realize that the odds are stacked against you. Virtually any tax advantaged deferred-compensation retirement accounts that you have, will have some direct and indirect penalties for early retirement.

This is the first hurdle in your early retirement planning. You retirement provision will have to come largely from fully taxed savings and investments.

There are strategies for avoiding taxes, but it is not available to all people and outside the scope of this discussion. It depends on your home country, the country where you normally live, the country where you earn the bulk of your income, and the country where you hold and invest your funds.

The next hurdle is to turn your savings into a reliable and sustainable income that would support you and your spouse 30 or 40 years or even more. No regular paycheck. No annual salary raise.

Case Study

I observed one of my friends making a very smart move. His early retirement planning was impeccable.

He first made it known to his colleagues, fellow board members, and fellow shareholders that he wants out on his executive and administrative duties. He went back to do the work that he enjoyed and did well when he was younger, before he moved into management.

He then resigned from the company and sold his shares, but indicated that he would be available as a subcontractor. He actually took early retirement and work only on projects that interest him. He and his wife travel whenever they feel like it – even for extended periods. Communications today make it possible to do some one or two hours of work on a project daily from anywhere in the world.

Some ten years later and he is still doing it. He's got the experience to know which projects would be challenging, but fun, without uncontrollable risks.

And the best part is that they can live well on his sub-contractor's income without drawing against his retirement provision.

Consider a Part-time Job

For many, early retirement planning start to make sense when you are prepared to save more, spend less, and consider a part-time job.

A part-time job remains very attractive throughout your retirement simply because too much leisure time on your hands can get pretty boring! We dedicate an entire section to Retirement Jobs on this Web site.

Here are some more discussions around early retirement:

Early Retirement Incentive

An early retirement incentive program (ERIP) is used from time to time by employers to reduce their workforce.

Taking Early Retirement

Taking early retirement is at the same time exhilarating and scary! Fortunately the scary part can be managed. Eliminate uncertainty and take control of your retirement planning.

Retirement Ages

Retirement ages differ from person to person and from country to country. You may retire whenever you want – as long as you have made adequate financial provision for your retirement.

How to Retire Early in the Real World

Wondering how to retire early? Frankly, retiring early is the easy part. The real challenge is in an extended retirement.

Retire Quickly versus Retire Secure

To retire quickly implies that you must get rich quickly. . . And the bait dangled to achieve quick retirement is invariable some get-rich-quickly scheme.

Social Security Retirement Age

The social security retirement age in the United States of America has been amended in 1983. The full retirement age or normal retirement age is gradually increasing, according to the year you were born. For people born after 1959 the normal retirement age is 67.

When can I Retire? As soon as you can afford it!

When can I retire? That's easy to answer: As soon as you can afford it! And when can I afford it? Mmm, more difficult to answer. Let's look at that.

401k Early Retirement? Any Penalties?

The 401k early retirement rules are no different from any other retirement provision plan's early retirement rules.

Baby Boomer Retirement? Why the distinction?

Boomer retirement is regarded as different from the retirement of previous generations. Why is that?

My Top Ten Reasons to Retire

The top ten reasons to retire would differ from person to person. I don't think there is an ultimate and undisputed list that would fit everybody.

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