By ES Ewen

Are you one of those people dreaming of an early retirement at 50 or 55 years of age instead of the traditional age of 62 or 65? Even with today’s gloomy economy, that dream is still possible to achieve. Planning is the key, especially if you are just starting out in the working world when money is usually tight. Scarifies will have to make and immediate gratifications will have to be deferred. You will need early retirement planning and have a good retirement savings plan that will provide the funds you’ll need for financial security in your retirement years.

Set Your Goal

An important first step in early retirement planning is to have a goal in mind. If you goal is to retire living the same lifestyle that you are living at the time of your retirement, then you need to figure the annual expenses involved to live that lifestyle and how much income you need to cover those expenses, and multiply that number by the number of years of your life expectancy. Don’t forget to account for inflation and unexpected emergencies such as medical emergencies due to accidents or natural disasters.

You can do this calculation yourself or your can get help on the Internet with free retirement planning tools to make the math easier. If you can afford it, you can hire a professional that provide retirement planning services to help you.

Choosing the Right Retirement Savings Plan

Having the right retirement savings plan will go a long way to getting you to where you financially will be able to retirement. Luckily, there are many different types of retirement plans to choose from. Some of the most popular plans include the Traditional Individual Retirement Account (IRA), Roth IRA, Keogh plan, and 401(k) plan. All these retirement savings plans offer some tax advantages that help the money invested in them grow faster that if the money was invested outside of the plans.

Don’t overlook some of the more traditional investment vehicles outside of the IRA, Roth, Keogh, and 401(k) plans, such as individual stocks, bonds, and mutual funds to diversify and spread the risk of investing. While the investments may not offer the same tax breaks as the IRAs and 401(k) s, they provide more options for your investment money. Other types of investments you may want to look into include rental real estate and gold coins. But remember not to put all your money in one place and don’t spread yourself too thin.

Do your research before you putting your hard earned money into any investment. You need to be knowledgeable about investing and the various investment options available to you. Read financial books, the business section of the newspapers, watch the financial news, or ask questions of friends who are successful in their investing or business. And once you decide on the types of investments, stick with them, but do review and, if appropriate, readjust the investment portfolio at least once a year.

If you are just starting out in the job market and don’t think you make enough money to start an early retirement plan, review your expenses and see where you can cut back, and put that money into your retirement investment plan.

When you are starting out, it matters little how much money you can save toward your retirement plan; the important thing is to start as early as possible. The earlier you save, the more time your money will have to grow into an amount that will be able to provide you with a financially secure retirement.

About the Author: Find out more about financial retirement planning as well as tips and strategies in planning for retirement needs at

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