Retiring at age 60 with 500K is no longer a pipe dream. Through discipline, budgeting and meticulous planning, retiring early with 500K in the bank is possible!
Can I Retire With 500K?
Yes, it is certainly possible to retire and live off this amount of money. However, that doesn’t mean this process will be easy. The common belief is that you will need to save anywhere from $1-$2 million to enjoy a happy and healthy retirement. Yet, in some cases that figure may be unrealistic. Living off 500K, with two individuals in the home receiving either social security or pension income, can make for a successful retirement.
Use these tips when saving for retirement by age 60:
Enjoying your current lifestyle while also planning for your future lifestyle is a key towards early retirement. Housing, utilities, transportation and healthcare should all be under a tight budget. If you are struggling to come up with a budget, the suggestion here is to go back and review all your bills from the past year. Figure out what you can cut back on, financially. Then, discuss your options and determine how you can make these sacrifices. If retiring at 60 is your goal, do not wait until your 40s to start budgeting. Work on a budget right now!
Save Early And Often
Of course, the more money you save during your working days will equate to an easier transition to retirement. An essential part of retirement planning is saving as much money as you can afford while you are young. Thankfully, there are several different ways for individuals to save these days. Opening a Roth or traditional IRA is a great way to start saving. Always try to take advantage of any expected pay that may come your way. This includes things like a work bonus. Put any extra money away for your retirement fund. Check with your employer to see if they will match any retirement plan amount fully.
Location, Location, Location
This may be the hardest part of the retirement savings process. Have you ever considered the idea of moving to a different area that features lower housing prices? Well, if early retirement on a limited budget is your ultimate goal, it makes a lot of sense to save as much as possible on housing. This can be an especially tough ask for people with kids in a certain school district, etc. Luckily, moving to a different place could apply to your retirement, exclusively. With 500K you may not be able to move to your dream destination during retirement, and that’s okay!
When Is The Best Time To Start Saving For Retirement?
In a perfect world, everyone striving for early retirement would start saving as soon as possible. This may be easier said than done, of course. There are many ways for young people to start saving now, though. A great way to start is by putting away 10 percent of your monthly income. Putting away 10 percent of $5,000 per month equals a total savings of $500 each month. Stretch that out over a year and you have saved $6,000. This 10-percent theory will help protect you from any stock market dips during your 20s.
A recent study performed by Charles Schwab showed that Americans say they should have at least $1.7 million saved by age 65. If you want to save towards that goal, it means you need to put away $500 every month starting at 25. This may be unmanageable for 25 year olds dealing with young children, student loans or struggling in the current job market.
Average Age To Start Saving For Retirement
According to Morning Consult, this is a look at what age most Americans begin saving money:
- Ages 20-29: 39%
- Ages 30-39: 25%
- Ages 40-49: 15%
- Ages 50-59: 6%
Vista Winds Is An Upscale Retirement Community Located In Peoria, Arizona
If you are doing research about retirement communities in Peoria, Arizona, Vista Winds Retirement Home should definitely be on your list. Vista Winds offers retirement living at its finest. We have a rich calendar of activities, meals prepared by a Chef and caregivers on staff 24 hours a day for your health and safety. We offer award winning independent living, assisted living and memory care services. Come tour our community to see how we are a step above the rest and how easy it is to Make Yourself at Home! Vista Winds is surrounded by amazing views and our resort style property will be sure to impress!
More Articles About Retirement
- How To Find A Retirement Community In Peoria, Arizona
- Easy Crafts For Seniors With Dementia
- Top 8 Low Stress Jobs After Retirement
- 55 Funny And Inspirational Quotes About Aging
- Retiring In Arizona Pros And Cons
- Cost Of Independent Living 2021
- Cost Of Assisted Living In Arizona
- Independent Living Vs Assisted Living