How to Retire Early: What to Do in Your 50'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 50's:

• Review your real estate.
• Stay with stocks.
• Do a benefits check.
• Cut the cord.
• Devise a tax strategy.

My thoughts on these:

1. Yep, now's probably the time to decide what to do with your house. Will you be retiring here or somewhere else?

2. Personally, I'll stick with index funds.

3. This is probably one of the biggest issue limiting early retirement -- what do you do about health care costs/coverage?

4. Time to jettison the kids -- if they haven't already become self-sufficient.

5. Call in the CPAs!!!!!!!

Comments

[Anitra]

Re: "Cut the cord" - remember that having children late and retiring early are options for everyone, but it's nearly impossible to do both. Personally, I wasn't even a teenager yet when both my parents turned 50. My mother turned 60 my freshman year of college. I didn't get much "need-based" financial aid because my father was in his peak earning years, just prior to retiring.

I tried to do my part by becoming self-sufficient as soon as my four years were up (I wasn't quite done with my degree, but I paid for the last few classes out-of-pocket)... but there's not much they could have done to "kick me out" sooner.

[Mr. Bee]

FMF,

Regarding #2, I don't think they necessary suggest to buy stocks, but their suggestion is to stay with equity, possibly through index fund. I think the main thing on this is don't put all into bond or cash, but keep some % in equity.

[Ron]

RE: Cut the cord. My parents bought me luggage for my 18th birthday. To some degree it was a joke, I knew that I was always welcome in their home. But the point was definitely made that it was time for me to start making my own way.