Retire Early Lifestyle
Retirement; like your parents, but way cooler

In 1991 Billy and Akaisha Kaderli retired at the age of 38. Now, into their 4th decade of this financially independent lifestyle, they invite you to take advantage of their wisdom and experience.

Feeling Insecure about Retiring?

Retirement can be a daunting thought for many people, especially if they feel insecure about their financial future. The fear of not having enough money to support themselves or their loved ones can be overwhelming and cause significant stress. However, with proper planning and preparation, it is possible to overcome these feelings and have confidence about your retirement.

Here are some tips to help you be more at ease about retiring:

Create a budget and track your spending: This will help you know where your money is going, will give you clarity on your budget and you'll know where you can cut back and why. It will also assist you in saving more for the future.

Plan your retirement income: Decide what sources of income you will have in retirement, such as Social Security, pensions, or investment income. Determine how much money you will need from each source to cover your living expenses.

Save, save, save: Make sure you are saving enough money each month so that you can reach your retirement savings goals. Consider increasing your savings rate if you are falling behind. Saving at least 20% of your income for retirement and building a emergency fund is highly recommended.

Consider working longer: If you are feeling unsure about your retirement savings, consider working a few extra years or having a side hustle. This will give you more time to save and increase your Social Security benefits.

Seek advice from a financial advisor: If you are hesitant about how to plan for your retirement, seek advice from a financial advisor. They can help you create a personalized retirement plan that takes into account your financial goals, risk tolerance, and investment time horizon. But we believe it is better to be your own advisor. Only you have your best interest in mind and with today's online tools there is no reason you cannot do this yourself. Really, retirement is not rocket science.

Learn the language of finance: If you know the basic financial terms you will be able to make better decisions for yourself financially, and have more meaningful conversations with your financial advisor. If you know more than the basic terms, you could manage your money yourself.

The 4% Rule

With the rise of financial independence and the 4% rule, more and more people are finding ways to retire early and live comfortably. This rule states that you can withdraw 4% of your retirement portfolio each year without depleting your savings. This is assuming you are invested in equities for at least 60% of your portfolio.

However, despite living within these parameters, many people are still afraid of retiring early. The future is always uncertain, and the thought of relying solely on their savings for the rest of their lives can be daunting.

Will I run out of money?

One of the biggest concerns for early retirees is the fear of running out of money. The stock market is invariably unpredictable, and there's always the possibility that a market crash could severely impact your portfolio. Additionally, inflation can erode the value of your savings over time, making it even more challenging to maintain your accustomed standard of living.

This is another reason why tracking your spending is so important. You will always know where you are with your net worth and in real time. There will be no radical financial shocks.

Social security benefits may not be enough to support your early retirement and you may need to rely on other sources of income such as from dividends. If you have become used to the security of a regular paycheck, you need to start building your portfolio today so that you can double your social security for when you retire.

Funding healthcare

Paying for healthcare is also a major concern for just about anyone. With rising costs in general, and of healthcare insurance in particular, early retirees could be faced with expensive medical bills that were unanticipated. The unpredictability of these things can make leaving your steady job seem like an even bigger risk.

Despite these concerns, many people are still taking the leap and retiring early. They understand that there will always be uncertainties in life, and they plan accordingly.

What you can do

Diversify your investments. If your investments are diversified, this can reduce the impact of market volatility. You might also consider investing in dividend-producing vehicles like popular iShares Select Dividend ETF, DVY and Schwab U.S. Dividend Equity ETF, or SCHD, in order to receive income in your portfolio.

Create a comprehensive retirement plan. Take into account your healthcare expenses, and consider other options for accessing medical care such as Medical Tourism, Medi-Share plans and Assisted Living Facilities located overseas.

Consider working part-time  At this point in your life you most likely have extensive expertise to become a consultant in your field, or you could take a part-time job that is less stressful than your career was. Supplementing your income can provide you with a sense of security. In this way, you can enjoy the benefits of early retirement while still having a source of steady cash flow.

Having doubts about retirement is a common concern for many people, but it can be overcome with proper planning and preparation. Remember that there will always be uncertainties in life, but with careful planning and preparation, you can overcome them and live a happy, fulfilled future in retirement. 

Retire Early Lifestyle appeals to a different kind of person – the person who prizes their independence, values their time, and who doesn’t want to mindlessly follow the crowd.

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