Can You Retire at 55? Tips For Early Retirement

Can You Retire at 55? Tips For Early Retirement

Schwab article on "The Rule of 55" (mentioned in Azul's video)

🔥 MORE FROM AZUL:

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Be careful of scammers. In the comments section, I will NEVER ask you to contact me, offer any investment products, recommend a stock broker, or anything similar. Some scam bot commenters 'ask' for investment help, and later, other comment bots reply with "how great X idea/investment/person is" in the replies. These are scam threads. Do not fall for them.

🚨 Azul's 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 right decision 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 and 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.

Spoiler Alert: There are no "get rich" programs. Rather, just basic blocking & tackling and putting in time and care. Do your homework, choose wisely and (IMHO) work with experienced professionals who are fiduciary to you 100% of the time.

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[IbrahimIsabella-]

I'm 54 and my wife and I are VERY worried about our future, gas and food prices rising daily. We have had our savings dwindle with the cost of living into the stratosphere, and we are finding it impossible to replace them. We can get by, but can't seem to get ahead. My condolences to anyone retiring in this crisis, 30 years nonstop just for a crooked system to take all you worked for.

[Farmwald]

As a beginner, educate yourself: Learn the basics of investing and the stock market. There are many resources available online, including books, articles, and online courses. It’s a good idea to diversify your portfolio across different stocks and sectors to minimize risk. I’ve heard of people accruing over $550k during recessions and inflation, its important to do your own research.

[kortyEdna]

Impressive video. I started a bit late (graduated from my doctorate program at age 30 in 2016 with 170k in school loan debt). Managed to pay off my debt by 2019 and currently have a house and 250k total in investments (combo of profit share, 401k and a brokerage account). I'm not very knowledgeable with investing, so I have all my capital currently vested in index funds but considering the dollar dumping and current inflation crisis. How optimal would this be beneficial long term?

[USMC-CAR]

Retired at 55. Back then it was the scariest thing I had ever done. I had a list of things I wanted to do. Read 57 books that year. Fixed things around the property. Focussed on health. The following year, I really felt that something was missing from my social life so I had to adjust by joining groups (With the exception of the Marines, I've never been a joiner). The scariest part was the third year. That was the year I started to draw from my taxable accounts and begin ROTH conversions. That was the year I really had to figure things out financially. I was probably over cautious. Once that year was done, the fourth year was really a blessing. I found a new passion and poured my heart into it. I figure that this process happens no matter when you retire and that it will take 4-5 years to be "comfortable" in your own skin after retiring. After that, life only gets better. ❤ Love these videos Azul... you always remind me that I need to go outside and play. 😂

[rfreeman]

Im out at 53. Too much to do while you are young enough, travel, meet people abroad. I cant imagine sitting on a 12 hour plane ride post age 65. Got rental properties a 401k and pension coming my way

[jwillard]

Yes, And I plan on it. 4.3yrs left. Can't wait.

[dforrest]

This is very well done! I just retired at 55, and the ability to take out of the 457 plan early is amazing and not well known. I’m lucky that my health care is subsidized from my pension provider. That’s about a $10k/year benefit and not taxed! Life is god retiring early.

[DrDRE]

Azul, Military members who serve 20 years can receive a pension guaranteed by the US taxpayer for life and as early as 38 years old. Then if the military member dies they can transfer 55% of that pension to a spouse for his or her life. There is a small fee for this insurance. The military retiree can also get very cheap medical coverage called Tri-Care. For individuals, it's $548 annually or $45.67 monthly and for family coverage, it's $1, 096 annually or $91.33 monthly. They can also get a low-cost college education and after 10 years of service can transfer that college education benefit to a child.

[JB-bytw]

I’m 54 now. I did a monte carlo simulation and my wife and I can retire at 55 (my wife is 53). Everything Azul says is right on! I will transfer my previous employers 401k balance to my current employer’s 401k plan before I retire to take advantage of the rule of 55.

I retired at 55, 57 now and loving life. I saved, invested and never made excuses.

[shaneleslie]

Retired at 38, Yes I sacrificed a lot of my 20’s to manage this. 3 guys at my work died all in the there 50’s such a wake up call. No amount of money can buy back time. You also realise how little you actually need. Choose life

[trikkeingferret]

So since I'm 63 already does that mean I missed it and can't retire? ;-)

[charlottewarriors]

Household net worth $4MM and debt free ages 56 and 53 looking to go at the end of this year for one of us and probably another 2 years for the other. Have gotten the right tax advice and have a solid plan but it still feels nerve wracking to just stop saving.

[druiz]

Gald i found out about the 3 buckets fairly young. 35... with a taxable, 401k and a roth I hope to retire at 55. 59 1/2 will be the very latest. But woth my wife's willingness to move abroad it should definitely be possible. Thanks for your videos Azul.

[MichaelArgenta-pi]

Im retired at 30? I new i wasnt the best looking man and didnt want to get married or have kids !!! Its a sacrafice to get to this point. U miss out on alot, but the way things are going right know i think i made right decision and am in agood spot in my life .

[benoitribaille]

The main trigger to decide which age to retire is having to sponsor kids or not to sponsor them anymore. I would not retire before 1st or even second kid passes successfully its trial period in its 1st job.

[dennisd]

No...unless your kids are off the payroll/don't have kids, if you have health insurance from military, and you saved/invested since you were 25. Also, rule of 55 I believe the amount you withdraw cannot change until you hit 59.5??

[bjbhehir]

I retired 10 years ago at 50. We spend the winters skiing in Tahoe ( 140 days this year) and the summers on Maui, Napili Beach, I surf every morning. We live off our rentals that are all paid off.

[headlibrarian]

The rule of 55 is often described in such a way as to imply that you can't roll over any of that money to an IRA or you'll blow your rule of 55 opportunity. That doesn't seem right, I would think that you can roll part of the balance of your 401k to an IRA so long as you draw on the remaining balance of your 401k for rule of 55 purposes. I can't find anything confirming that interpretation, however.

[hscknives]

just turned 55, moved to the south of France near Spain, bought a house cash, healthcare with France universal health care. no debt, sold employed knifemaker to get me through until I can use my 401K and SS