Early Retirement Without a Huge Nest Egg

retirement nest egg

Many people dream of retiring while they’re still young enough to have some fun. Then they look at their bank balance, sigh, and decide that they will have to work until they’re eighty. This might not be true, however. Lots of people retire early without a fortune in the bank or a large inheritance on the way. To do so, however, requires a lot of thought and planning and a willingness to live a bit differently from the herd, both now and once you do retire. Here are some thoughts if you want to retire early.

It has to be a priority

This is probably the single biggest factor that separates those who actually retire early from those who talk about it. If you want to retire early,


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5 Responses to Early Retirement Without a Huge Nest Egg

  1. fern says:

    “When you leave the work world, you’ll probably lose your insurance.”

    This will, of course, change in 7 months.

  2. cindyoh says:

    The older I get, the less I see the value of fantasizing about “retiring” completely. All the senior citizens I know (and I know quite a few since I have to run my mom to her various senior groups) are basically bored out of their minds, the ones who are still mentally and physically okay, that is. They have money, they travel, some volunteer, but they all say don’t be so quick to want to retire. Even those with involved hobbies who had a great game plan have said this to me. The happier ones do a lot of volunteer work, which I think I will want to do. All I know is you’re probably gonna be incredibly bored without some meaningful “work” of some sort, paid or unpaid.

  3. Gailete says:

    I think the biggest thing was to not expect a golf-resort-luxurious lifestyle. Just the thought of that bores me to tears! If people retire without a plan, many of them die quickly. It is the busy people that keep on doing things that can have a nice retirement. I got thrown into ‘retirement’ unexpectedly due to disability and try to keep as busy as possible while dealing with poor health. I can’t imagine spending my life watching TV 12 hours a day!

    I do believe that your mention about not being able to tap into your IRAs, etc. until a certain age is incorrect. If you are ‘retired’ prior to a certain age, then you can take certain amounts out of your retirement funds each year. There may be penalties, etc. though if you go back to work and stop withdrawing. This is something you need to discuss with a tax professional.

  4. simone says:

    The key to retirement is start saving early and be consistent. Save with every paycheck and take advantage of any employer matching plan.

  5. Gigi says:

    Just wanted to add that it is possible to withdraw from a conventional IRA before age 59.5 without penalty. It’s called Substantially Equal Periodic Payments (SEPPS). It involves starting, and sticking with, a program of removing the same amount every month, quarter, or year from your IRA. Google it. There are a number of articles about how it is done.

    Of course, the truly frugal won’t have to do this!

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