Financial Focus: Retiring in your 30s or 40s?

9:57 AM, Aug 02, 2019

COLORADO SPRINGS — It's something most of us can't do until we're in our 50s or 60s: retire.

However, the dream for some people now is to make this move in their 30s or 40s.

Our partner at Carlson Financial explained what it takes to retire early.

"Never thought that that would be the case," said Lynne Grinstead who was able to retire a little bit earlier than most.

"We had to review our finances and our debts, and our bill structures and try to trim that down as much as possible."

She's now 63 years old and was able to retire when she was just 48. However, the dream for some people now is to call it quits as early as 30.

Carl Carlson, CEO of Carlson Financial, said there's a new movement spurring this idea.

"It's called F.I.R.E. That's Financial Independence Retire Early."

He said millenials are behind it.

"They want to enjoy life a little more. They're not so interested in things as they are experiences and you're going to get those experiences if you're not working all the time."

But to achieve this you have to be financially independent.

"Planning is key and if someone wants to retire in their 30s they really need to start planning for that right out of college."

Planning might even have to start before college.

"They have to have a certain amount of money saved up to pay the bills because they also can't get social security anywhere near close to that age."

Can it actually happen?

"A friend of mine did retire in his early 30s...it can, but it's not easy."

Bottom line - live small now to dream big later on.

If you do want to retire early keep in mind the amount of money you'll need. Carlson said for people in their 50s they'll need between $500,000 to $1 million. There's also healthcare costs to think about as you won't qualify for Medicare yet.

Carlson Financial is a sponsor of Financial Focus.

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