Screen Shot 2016-06-21 at 8.43.38 PMGraduation caps are hung in the closet and now you are facing the world at large. Here are some tips to retiring in your 40’s.

 1.    Save Save Save

You have to save everything you can. Everything sacrificed today will be the result of tomorrow. If you are lucky you can see money double twice in 20 years, but that depends on the market and your returns. One thing that will make it happens is by the rate you save your money not grow your money. Looking at someone who is retired in their 40’s could not have any major growth of their assets to hit their goals. The growth is just the bonus that makes it happen earlier or with a little more than you may have had.


2.   Set Your Goal

How much do you want a year in income and what will it take to get to that goal? Not only do you need to figure out what percentage of income you need to save, but also it needs to generate when you get there.


3.    Have a Plan

Set standards. To be safe, you can use a rate of 3 or 4 percent. But a take into consideration, at those rates, you will have 30-40k a year per million you have put away. Some will say that’s enough, but some will say they need 3 million to make sure they always have 100k a year. You can easily say you need to be riskier but those risks don’t come with guarantees and if you lose a portion its back to work you go.


4.    Be Aggressive

Take full advantage of this time where you can afford to invest aggressively. Take on risks, and the benefits of earning better returns will be worth it. Putting your money into equities does entail more risk, but it also offers you with more growth.


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