The average American retires at age 62 according to an April Gallup poll, but even in a low-interest economic environment, it may be possible to quit working sooner. Check out these tips for getting your financial house in order and kissing the 9-to-5 goodbye faster than expected. . .
The No. 1 expense you should focus on ditching: your mortgage, says Wes Moss, author of You Can Retire Sooner Than You Think.
“If it’s a $250,000 mortgage, if you pay an extra $300 a month, it shaves off almost a full decade in payments,” he says.
Diversify Your Income
Diversifying your retirement investments is important, but so is having multiple revenue streams. Wes Moss advocates “income investing,” which provides retirees with an ongoing cash flow generated from stock dividends, interest on bonds, and distributions from investments such as master limited partnerships (MLPs) and real estate investment trusts (REITs). Instead of evaluating investments based on their market growth, Moss advises those over age 55 to seek out investments that offer a consistent and predictable cash flow.