How to Retire Early: What to Do in Your 30's

Business Week recently ran a spread on how to retire. Within the section, it listed what to do at various life stages if you want to retire well/early. I thought I'd share some of these thoughts with you and give my comments on them. Today, we'll be covering what they recommend you do in your 30's:

• Concentrate on your career.
• If you're going to have a family, there's no time like the present.
• Set goals.
• Stash your cash.
• Insurance RX.

My thoughts on these:

1. Said a different way, "concentrate on your most valuable financial asset."

2. We had kids in our 30's and if I was to do it again, I'd have them in our 20's (late 20's).

3. I look at my net worth every month. It's my main financial measurement -- though I have others, of course.

4. Keep saving!!! That's a big retirement number you have!!!!

5. Insurance is often the forgotten step-child of personal finance but it's a vital part of any solid financial plan. It's so important that I made it one of my five principles.

Comments

[Chief Family Officer]

Why do you wish you'd had your kids earlier? If you plan wisely, you can be in a much stronger financial position when you have kids if you wait a few years. I personally think it's worth waiting so you can buy a house, pay off debt and get your retirement savings going. By the time you have kids, you'll be making more money so their costs will eat up less of your overall expenses.

[FMF]

CFO --

From a financial standpoint, it can be better to have them when you're older. But I'd like to be a younger empty-nester than I'm going to be when we hit that point.

[kitty]

From health standpoint it makes a whole lot of sense to have them when you are earlier (I mentioned this on other blogs). To people who think about postponing, I suggest looking at 1) charts on how woman's fertility drops with age 2) charts on how the risk of miscarriage goes up with age 3) charts on how the risk of having a baby with Down syndrome grows exponentially with age 4) charts on mother's risk of having breast cancer after menopause vs age of first birth. IMHO -any of these reasons is more compelling then money.

The fertility clinics are full of women who waited until they are financially ready. So, if you wait you might be in a strong financial position and unable to have conceive.