At E&Y Tax Preparation Services, we get a lot of questions about retirement and income. When to save, how to save, and where to save it are some of the most frequent topics we discuss with our clients. Ideally, we always like to tell our clients that striving for an early retirement is the best option. When you focus on an early retirement, your determination to save better will be more focused and correct.
What if we told you that you could retire at 50, instead of 65? E&Y Tax Preparation is going to help you get to that goal, if not sooner!
Keep money set aside for peace of mind
When you have money in the bank, it is comforting to know that you have a cushion, even if you don’t need it. The people who tend to worry about every bill and expense are those who don’t have flexibility with their money. By incorporating a small savings plan and smart money habits, you’ll be less likely to worry about money in the future.
You never know what changes may impact your future
While you may be on track to retire at 65, or even later, you can’t possibly predict how your future may change. Your passion for your work may diminish, health concerns may arise, and 50 may just sound like a really great number to call it quits. A lot of people are tired of working, but what will do you without a paycheck? When you pursue early retirement, you’ll save more for the pleasantries and unexpectedness of life later on.
You can choose to work fewer hours
Maybe you wont completely retire at 50, but with an aggressive retirement plan you can definitely cut back your hours and workload. Many people think that cutting back their hours isn’t a possibility with their current positions, but more and more employers are allowing their older employees to scale back, especially with the increase of healthcare costs taken on by employers.
Medical emergencies are no longer an emergency
Many residents across Metro Detroit are forced to declare bankruptcy due to outstanding or past medical bills. When you have a better retirement plan and are actively saving, these medical issues are less likely to eat up your entire life’s worth.
We don’t see any downsides to having too much money in the bank. Still have more questions about retirement and retirement income this tax season? Give us a call or stop by E&Y Tax Preparation Services for more assistance! (248) 362-131