Can You Still Retire Early?

A lot of people look forward to retirement. Images of relaxing on the beach, taking a cruise, and enjoying the fruits of your labor come to mind. No nest egg is too big for retirement. However, with the economic downturn draining the value from IRAs, 401(k), and pension plans, a lot of would-be retirees are wondering if they can really afford to retire early or even retire at the right age at all.

Previous goals which used to be realistic only a few years ago now seem completely off the table. The financial predicaments many people are finding themselves in are testing the assumptions they made about retirement planning. Solid retirement plans that used to give decent yields are now in jeopardy. Many would-be retirees are questioning whether it is possible for them to retire early or if it would be possible to retire at all.

3 Step Process to Damage Control

Despite the economic downturn, it is still possible to take control of your retirement. The three steps include: finding a job you love, saving more, and maintaining a modest living standard. Even if you do decide to change your investment strategy, the critical aspect is to keep on saving. It is important to maximize whatever retirement program from work because you will definitely need it.

It is also important to be aware of what's happening in the market. However, no matter what you hear, never panic. Sit down with a qualified financial expert who will you help in your long-term strategy. It would be a good idea to hire someone who is not affiliated with certain financial companies. That way, he will be able to give unbiased review and good advice. There are unique instances when you will need to take a more active role in managing your money. The challenges today are one of them.

Is There a Target Figure?

There is no magic number when it comes to retirement planning. The amount you should target depends on your mindset, your capability, and what life stage you are in. A lot of financial advisers are simply advising their clients to put away as much as possible at the earliest possible time.

The main problem with setting targets is that during your 20's or even 30's, you have no idea what the living standards will be like several decades from now. In fact, even people in their 50's don't know exactly what their magic number should be. Even if you do come up with a figure early on, the large number might "take the wind off your sails".

Author and entrepreneur Bernz Jayma P. is the owner of a financial blog dedicated to helping people expand their knowledge on personal finance. You may visit his blog at http://www.Invesmint.com.

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