Quick Tips to Retire Early
The key to retiring early is to invest wisely. Wisely for most people will involve choosing mutual funds or index funds with the lowest cost possible and setting aside as much as they humanly can to 401k and Individual Retirement Accounts for investing.
Max our your 401ks and IRAs
Traditional IRAs and 401k programs offer the ability to use pre-tax money lowering your tax obligation and making it easier to save for retirement and maximize the amount that you can invest while keeping the most in your pocket.
The power of compounding
The power of the stock market and learning how to invest correctly comes from the magical power of compounding If you’re 30 and only invest a mere $1,000 and return the 7% or so the market has earned since 1946 then after 35 years your $1,000 will be $10,677
Now think about if you added $1,000 a year and begun when you are 30 then you’ll have $148,913.
Be cogniscent of fees and choose the lowest fees
If you can use Vanguard then you’re in luck they have some of the lowest fees and you can use their exchange traded funded which can be purchased like stocks if you can buy stocks. Every fund will have ratios that will deter whether it is the best investment for you. No Load, Very low expensive ratio funds are the best way to go.
You can smart with a surprising little amount of money
Learning to invest can be conduct with done with little money. Continue on with our article, Invest with Little Money.