We’ve recently written about the trend towards early retirement in Australia – also being referred to as the Financial Independence, Retire Early (FIRE) movement.
It’s only natural in a world where the line between work and life has moved and Australians have shifted their mindsets around finance and lifestyle, towards the balance we all seek. So of course, the decision to retire early is about more than money, although we need to be able to pay for the retirement lifestyle we want.
Before you get too excited and start making plans to exit the workforce and embark on this exciting adventure of retirement early on, consider these key questions.
When do you want to retire?
Why do you want to retire?
How much will you need for the long-term?
What is your risk tolerance?
What is your debt balance like?
Do you have the right advisors in your corner?
What are your future health needs likely to be?
Where will you derive your sense of purpose from if work has been a large part of your life until now?
What will you do with your time in the longer-term beyond the initial excitement?
What advice would you give your partner/spouse/family and friends if they were contemplating this?
It is important to be realistic with yourself and take time between thinking about these things and making any bold moves. Perspective can mean a lot, as can a small amount of extra time in the workforce towards a comfortable retirement and a life well-lived and one of worry.
If you would like to explore your options for an early retirement, or planning towards retirement at any age, contact our team on 07 4688 8000 to make some magic happen.
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