Many workers daydream about retiring early, focusing on the joys of not working and having more time to pursue their interests. However, you’ll need to do some homework to turn your fantasies into reality. Let’s dig deeper and look at five steps you should take with your finances to support a retirement at age 50.Before you retire from your job, you’ll want to make sure you can support yourself, and your spouse or family if applicable, for the rest of a potentially long life. Most people who reach age 50 can expect to live another 30 to 40 years, or even longer if they’re healthy and if their older relatives lived into their 80s or 90s.
Step 1 is to understand and learn to balance the common-sense formula for retirement security:You’ll want to work both sides of this formula to make it effective, so calculate the amount of reliable cashflow you expect each year throughout your lifetime and estimate the annual amount of living expenses you expect as well.
The following steps provide details on both sides of this formula. After you complete the steps for the first time, you might need to repeat some of them to adjust your income or living expenses in order to balance the formula.
