Throughout your working years one of the most typical lunch room discussions might be the pot of gold at the end of the rainbow: an early retirement. As a financial planner, I get the question often, and for many, the allure of an early retirement may be undeniable. In high income areas like Irvine and Orange County, it may seem more common, but to be sure, retiring before 62 is not something that just happens: it takes dedication and a robust plan.
If early retirement is appealing but seems far off for you, before you try something irrational like trying to win the lotto, consider two outside-the-box strategies that might get you out of the work force while there’s still more than a little spring in your step.
Relocation—If you’re behind on your savings goals, but feel the need to retire, you can consider relocating to an area that is comparatively lighter on the wallet. Certain states may hold tax advantages which may even allow you to more or less maintain your standard of living, depending on where you’re moving from.
If middle-class American comforts aren’t a priority for you, relocating abroad to a place with lower cost of living can be one way to get your savings to go further. While this serious adjustment isn’t for everybody, it could be just the thing for the adventure-minded retiree looking for a change of pace.
A career change—If you’ve worked in your position for a decade or more, feeling stagnant is not uncommon. In addition, changes in management or other personal conflicts can make a work environment feel toxic. In such situations, a career change can really make sense. Although this isn’t early retirement as such, a change in careers, if possible, can give workers a second life that may feel as good as early retirement.
Professionals can start their own business, based on something they’ve always been passionate about. Avenues such as consulting and import/export are standard choices that hold an almost limitless amount of possibility if you put in the time and effort. Some workers may enjoy the change of pace of teaching, and there are programs, such as Transition to Teaching through the Department of Education, designed specifically to help mid-career professionals make the change.
Goals & Priorities—If you’ve got a retirement plan that is outside the box, it will obviously require some planning. Regardless of your situation, and whether you’re living in Irvine or elsewhere, one undeniable fact is that early retirement is not for the passive: you won’t just fall into it. In order to make it happen, you’re going to need a goal. Start by talking over what you want with a financial planner and drafting a plan. With goals in place, you may be surprised at how you start to think creatively about certain areas of your life. By adjusting your priorities, early retirement may stop sounding like a pot of gold and shift toward being a reality.