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According to a recent survey from TD Ameritrade 50 percent of Americans dream of retiring by 60, yet only 33 percent of truly believe they will be able to accomplish that hope due to their current financial portfolio. Currently, the full benefit age to retire is 66 years and 2 months for people born in 1955.
As previously reported by FOX Business, the median savings account balance among U.S. households today is $4,830 with a whopping 29 percent of those households having less than $1,000 saved.
No wonder early retirement seems like a distant pipe dream.
But if you're eager to be one of the few to be able to pull it, GoBankingRates compiled a list of tips on helping you achieve that goal.
Here are 10 ways to set yourself up to retire early, according GoBankingRates.
1. Create an early retirement plan
With a slew of free online tools and calculators to help you set the stage for costs relating to your ideal retirement, there is no reason not to start early. The personal finance website says a solid plan is essential for speedy up the process.
2. Redefine 'comfortable retirement'
What's your ideal vision of retirement? Two homes and monthly vacations? If you want to truly retire early, you must have a solid vision of your retirement and figure out a plan that is truly attainable.
3. Learn about personal finance
Educate yourself. Read books, take online courses and speak with professionals about retirement planning.
4. Don't stall
GoBankingRates says "no matter what age you are, don't wait to get started on saving for an early retirement. The longer you wait, the longer it will be until you can comfortably retire."
5. Live below your means
Early retirees need to take an honest look their budget and start cutting costs as soon as possible. Skipping a $4 coffee in the morning isn't going to cut it.
6. Pay off all your debt
Student loans, credit cards debt and mortgage payments need to go ASAP to properly set yourself up for retirement.
7. And keep avoiding debt
Once you pay it off, don't add any additional debt. Cut up those credit cards.
8. Consider overlooked financial resources
Look for cash streams outside the traditional retirement realm. Jennifer Birchett, principal wealth advisor with TrueWealth says there may be pensions that you are entitled to from current or previous employers. Additionally, people are urged to keep track of any 401k plans from past employers.
9. Invest early and often
Every dollar counts. Save early and save often. Additionally, look for safe investments to grow your money such as money market accounts, CDs and bonds.
10. Maximize 401k matching
If your employer matches your 401k contribution, take advantage of it. If you dont, you are essentially leaving money on the table.