You’ve worked short, holidays, and your share of shifts around the clock in your nursing career. Patients videotape care without your consent. They may even alter the video. Patient loads are increasing and nursing is physically and emotionally demanding. Although you love your nursing career, these conditions may create the thought of early retirement.
Retiring early is a dream for many, including nurses. Early retirement can give you more time for hobbies, travel, or family and friends. However, retiring early needs careful planning and preparation. In this article, you will explore tips to retire early.
Tips to Retire Early
Start Planning Early: The earlier you start planning for retirement, the better. Start by setting a retirement goal and budget. Decide your lifestyle and what you want to do in retirement. Is traveling, volunteering, or a new hobby on your bucket list? Once you decide on your retirement lifestyle goals, estimate your expenses and how much money you’ll need to save to meet your needs. Remember to include healthcare and long-term care expenses. Consider meeting with a Financial Advisor to help you develop a retirement plan.
Explore Ways to Cut Expenses: Once you have your retirement budget, look for ways to cut back on expenses. Ways to reduce expenses include eating out less, cutting unused subscriptions like streaming services or magazines, and shopping for better insurance and credit card rates. Focus on saving as much money as possible.
Save as Much as You Can: Saving as much as you can is essential to retiring early. Consider increasing your contributions to your retirement accounts, such as your 401(k) or IRA. If you have a high-deductible health plan, consider contributing to a health savings account (HSA) to help save for healthcare expenses in retirement.
Consider Part-Time Work: If you are not ready to retire completely, consider working part-time. Part-time work can help you transition to full retirement while supporting your income. You can always increase your hours if you find retirement isn’t working for you.
Explore Retirement Benefits: Retirement benefits are complex and may change over time. Consider meeting with your Human Resources department to review your benefits. Ask questions to help ensure you get the most from your retirement benefits.
Generate Passive Income: Another way to help retire early is to produce passive income. According to the IRS, passive income is from activities you do not directly take part in. Examples of passive income sources include rental property, royalties from intellectual property, dividends, interest, and annuities. Generating passive income can help you save for early retirement.
Many people dream of early retirement, including nurses. However, retiring early requires careful planning and preparation. Start by setting a retirement goal and deciding how much money you will need to save to meet your lifestyle expenses. Consider cutting unnecessary expenses and saving as much as you can to retire early. If you are not ready to retire completely, consider working part-time. Retiring early is achievable with careful planning and preparation. Consider speaking with a Financial Advisor to help you create a plan to retire early.
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Georgene Collins, RICP®, RN, PhD, MBA is a registered nurse turned Financial Advisor at Airey Financial Group. Georgene helps other nurses take control of their finances and prepare for retirement. Georgene began her career with Airey Financial Group in 2017 after retiring from 30 years in healthcare.
Georgene holds the Retirement Income Certified Professional (RICP®) designation from The American College of Financial Services. She holds health and life insurance licenses and a long-term care certificate in Indiana and Illinois. Georgene is a Registered Representative and Investment Advisor Representative and has earned the FINRA Series 63 and 65 registrations.