What are the benefits of early retirement plan?

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youngcarter

Confused about dryer sheets
Joined
Jul 16, 2010
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Hi guys...

Can anyone tell me what are the benefits of early retirement plan and for whom it will be applicable?
 
Though it is a fairly abstract concept to most, one could put a dollar value on free time.

People who early retire, simply choose to spend their money (usually through opportunity costs) on their time and the freedom to do what they want with that time, instead of spending it on expensive consumer items.

The benefits are only there if they align with your personality and values.
 
youngcarter said:
Hi guys...

Can anyone tell me what are the benefits of early retirement plan and for whom it will be applicable?
Click to expand...
Well, you don't have to work, for one thing. You can do other things with your time.

It applies to anyone who has amassed enough savings to cover their living expenses for several decades, and/or has pension or other benefits that will pay out over their lifetime to cover those expenses.

A general rule we use around here is 25x your annual living expenses - including any taxes you may owe each year, and also covering any health care/insurance needs you have, as some lose health care related benefits when they quit working before Medicare kicks in at age 65.

Audrey
 
You smile a lot.

Really -- a lot.

I went to lunch this week with a friend who retired three months ago. At the time she was very worried about what she would do with her time.

As we sat down, I said: "So, how's this retirement thing going for you?" She just beamed.

You do that a lot. Trust me, if you can swing it financially and intellectually, it's worth every minute!

Rita
 
youngcarter said:
Hi guys...

Can anyone tell me what are the benefits of early retirement plan and for whom it will be applicable?
Click to expand...

If you are refering to the art of planning for the future (retirement?), I would consider it that same thing as planning your family vacation in the old sedan. You pull out a map and plan your route and stops along the way. You could still end up having a darn good vacation without planning the trip, but maybe not...:ROFLMAO:
 
mickeyd said:
If you are refering to the art of planning for the future (retirement?), I would consider it that same thing as planning your family vacation in the old sedan. You pull out a map and plan your route and stops along the way. You could still end up having a darn good vacation without planning the trip, but maybe not...:ROFLMAO:
Click to expand...
Yes, there is a difference between "what are the benefits of ER" and "what are the benefits of an ER plan." An ER plan only makes sense if you want to ER (or to be able to choose to ER at some future point). Hopefully, a well thought through plan will better enable you to achieve your goals.
 
The benefit of a plan is options. If you follow a plan leading toward ER, and then decide you want to keep working, no problem! But if you don't follow a plan and decide you want to stop working, you might not be able to. Also, if your screen name reflects your age, the benefit of having a plan when you're young is that you don't have to save nearly as much as you will if you wait until you're 45 or 50. If you start early, the "magic of compounding" will do a lot of the heavy lifting for you.
 
My first impression was that the OP was mistakenly posted here instead of e-mailed to the company HR department...
 
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