Can I Retire at 55? Tips for an early retirement

Is retiring at 55 the ultimate win? If you are in or hope to be in this situation in the future, todays video is for you.

==
Be careful of scammers. In the comments, I will NEVER suggest you contact me, offer any investment products, recommend an adviser or anything similar. Some scammers ask for investment help in the comments and later, other commenters post how "great that idea/investment/person is" in the replies. This is a scam. Do not fall for it.

MORE FROM AZUL:

NEED FINANCIAL ADVICE?
1) Google "fee-only financial adviser" or visit www.NAPFA.org
2) #1 question to ask any financial adviser is "Are you a fiduciary to me 100% of the time" Get the answer in writing
3) Please note that some people call themselves "fee-based". This is NOT the same as fee-only. Fee-only advisers have committed to being a fiduciary to you 100% of the time.
4) Speaking just for myself personally, I would only hire an adviser who is a fiduciary to me 100% of the time. This is not a suggestion on what you should do. We are all different and I do not know your personal situation.

MY VIDEOS ARE NOT FINANCIAL ADVICE (Disclaimer):

The decisions on how to invest, when to retire and other financial planning topics are some of the most important financial decisions you will make in your life. I urge you to seek professional financial advice as you make this decision. Ideally from a financial adviser, AND a CPA AND an attorney. Having the perspective of all three professions will help you make the decision that is right for you and your family.

This information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor may NOT be suitable for all investors.

This information is NOT intended to, and should NOT, form a primary basis for any investment decision that you may make. Always consult your own legal, tax, and/or investment advisor before making any investment/tax/estate/financial planning considerations or decisions.

I don't believe in "get rich" programs. Rather, I believe in doing your homework and working with professionals who are a fiduciary to you 100% of the time.

[melvano]

Just retired today at age 56. Thanks for these informative videos.

[wufdude]

Enjoy the comment. Just started utilizing SEPP from IRA this year. Currently 51 and transitioning away from a high stress job to a lower paying, low stress job and utilizing the distribution to bridge the gap to current income. Planning to utilize the Rule of 55 when I leave work force permanently to tap into 401k at 55.

[timothyharris]

I'm 55 and ready to retire so it's like you made this just for me! Question though...I've contacted a couple of the "fee only" consultants from your list because I'm very much interested in talking to someone about where I'm at....BUT...in both cases they were only interested in how much money I was going to "roll into" their business for them to manage year to year. One explained that's the "fee only". I was thinking more like an hourly rate to get my head straight, not push my life savings into their consultancy. It felt like a shakedown.

[MrKogline]

In my taxable account I already make $1300/mo in dividends at age 37. I plan to retire at 40 because my house will be paid off because I'm looking at a small house in a small town which will be bought outright and the property tax is almost nothing. I live simply so my expenses are small so by the time I hit 40 I should be just fine with a growing income from my stocks. Good luck to everyone else and I hope your dreams become reality.

[lizb]

Unfortunately, I wasn’t able to retire early. I will be retiring this Fall at 65. Can’t wait!!

[alyap]

Retiring this summer (June 30) at 59.5, so no more penalties. But have equivalent of 3 years cash to weather the current volatile market. Will take Soc. Security early as wife is older and she can get 50% of my SS at FRA rate. No debt except for a small Heloc on the house that I pay around $360/month. Already booked a ticket to Europe for Sept - October. Live in a low cost southern State with easy access to the ocean and the mountains. Looking forward to it.

[rbaffrey]

I’m 54 and am getting encouragement from you to retire next year at 55. I’m excited!

[MajorWeakness]

If you are 55 then there would be no 10% penalty if you take out the money from your last employer 401k or 403b you retired from

[greglyon]

Enjoying the content Azul. One additional bucket would be a taxable investment account, where one can pull from with only capital gains taxes, creating a bridge to 59.5 years old, and maybe do roth conversions along the way while in the lower capital gains tax bracket. However, beyond this, I find the challenge with retiring earlier than 65 is the daunting hurdle rate required to do it safely. At 55 one is looking at paying 10 years of private health insurance, at least 10 years until SS kicks in. In addition, giving up 10 years of 401k contributions, 10 years of income, 10 years less of investments growing without harvesting them etc etc. In many instances this adds up to $millions in potential lost revenue and growth, exasperated by no Medicare or SS. Maybe you can discuss how to compensate for this hurdle rate as it can have a profound impact on quality and sustainability of retirement.

[johnking]

I’m 58 and have had some medical issues. Insurance is the thing keeping me working .

[tonylevine]

55, retired military with pension and VA disability checks, and retirement account. Also, large emergency fund. I’m itching to retire now but not sure.

[claudeclarke]

The system is structured to make you work until you are close to retirement. Healthcare is a major concern for most people and the system they've setup forces you to keep working as they need people in the labor system as long as they can possibly keep us in it! Healthcare is hard to get thankfully Obamacare can help or if you retire out of country some countries allow you to buy into their health system.

[hurlman]

43 and plan to retire at 50. I’m kind of obsessed with it, to an almost unhealthy degree. 7 years to go, counting down the days.

[reddragon]

Public sector workers who separate from Gov service can take withdrawals from 403 and 457's as you mentioned.

[glennelong]

My pushback on the whole early retirement craze is this: there are
many of us who love our life's work and to simply blow that away to
go clean toilets or scarf money from YT seems like a tragedy. If you
love what you do then find ways to take more time for yourself, but continue
to be engaged in your life's work. This is especially true for people who run
their own business or who's passion is closely connected to their work. Would
you have told Luciano Pavarotti to stop singing Opera and go work retail part-time?
For others, myself included who have filled our experiences bucket with a lifetime
of adventure, the go-go years are simply are simply an extension of what we
have been doing all along. There is simply no rush to go somewhere we've already been or
do something you waited far too long to experience. For others, their work environment
is also their social/family environment. For them, leaving their work would be like
leaving a daughter on the step hoping someone would take her in - impossible,
it's what they know and love and wouldn't dream of leaving it. My father, a business
owner who's greatest passion was his work, did so until he was 89 and loved every
minute of it. That didn't mean he missed out on his go-go years, or other life
experiences. He did it all and then called it a day. I always tell folks the same thing
- don't put off until later, what you can experience today - sound familiar?
Ignore the nay-sayers and the noise on social media - Just do it. I can confidently
say there is nothing I need to stop doing to make up for something that I've been
missing. Think like a 10 year old - make every day an adventure and you'll never
regret it.

[sldu]

Retirement is overrated. Lots of time but a finite cash flow? No thanks.

I have low overhead, sitting on $1-million in equity. Money in the bank. Low stress, interesting job that makes ends meet, and I'll turn 59 in a week or so.

[petermorales]

Hello I'm 39 years old and I will be eligible to retire in 10 more years of service. Due to my occupation we are forced out at 57. My question is would it be better to focus on paying off my home to be totally debt free before I retire or continue to contribute to my TSP(401k) the remainder of my years till I retire.

[tjr]

Went at 56 3 years ago. Worked for same company for 39 years (UK), couldn’t take the corporate psychopaths in the end. Never looked back am blessed

[reddragon]

$100, 000 rate per year? Who has $3, 000, 000 in a 401k?

[tcurtisFl]

Great content and you make it simple, interesting, and motivating…Thank you.

I’d love to see future videos on:
How to select a fee only advisor?
What are the services the advisor should help with and which services should you seek other professionals like tax accountants?
Your thoughts on JL Collins’ 2 Vanguard Index funds method to simplify investing and save on fees?
Using geoarbitrage for retiring early.
Thanks for sharing!