For most people under age 40, retirement is a vague concept in the distant future. But somewhere around age 50-60, many people begin to seriously investigate how they may be able to retire. Few are able to retire early and too many will never be able to retire at all. What makes the difference, in my opinion, is the career planning before age 25. Enjoying a nice standard of living from making a good wage is a goal of many high school and college graduates. Those that ambitiously move forward toward a well-paying career, coincidentally, are the only people that are able to successfully retire early.
From a welder to a medical doctor, the careers that pay well can create enough extra money to retire early. An acquaintance had the U.S. Navy put her through college and medical school. She only had to work for them for 4 years to complete her commitment to them. She was a successful surgeon, lived well, and retired at age 47. On the other side of the spectrum, a line worker in his 60s that I know at a manufacturing plant still financially struggles at the end of every month. Although he could take early social security retirement, he knows he cannot live off of social security so he waits for age 66-70 to get more money.
What do you do if you’re career trajectory hasn’t been the financial payoff that you expected? Pivot immediately to a better paying career. I know people that enrolled in law school at age 40, finished their bachelor’s degree at age 38, and started at the bottom in a new career that pays them very well today. Another relative switched universities junior year in order to change majors to something that would pay far more money. He lived very well and had the option to easily retire at age 58; but he waited two more years to pile up extra money from his over-sized salary.
Earning a lot is no guarantee of early retirement; there are a million ways to fritter money or lose it. But to have a shot at early retirement, a healthy paycheck is step #1. If your career doesn’t allow for a large paycheck, and you’re not willing to change at this point in your life, then your money must do the hefty lifting for you – but this both difficult and very risky to accomplish. A far better approach is to find a side job or a side gig; luckily there has never been an easier time to find these online.
Sooner or later, you may want to have the option to retire early, or to retire at all. Today is the time to make a serious assessment of your career options, side job options, and investing options to make that happen.