Have you ever been so fed up with
the grind of the daily rat race that you thought about tossing in the towel - wishing that you could just retire even though
65 is a long ways off? If you have, then you may be a candidate for extreme early retirement.
More and more people are considering retirement before
50 – some even retire in their 30s. Many people consider extreme early retirement because they are burned out on their
current careers. Others just want to drop out to pursue their true life's calling. Whatever the reason though, the appeal
of extreme retirement can be great - but it may not be for everyone.
One of the very first things that you should consider is the other people in your family
and how extreme retirement would affect them. Though it isn't impossible to retire very early with children, it certainly
does complicate the picture. You will have to give some careful thought to the sacrifices they may need to make because of
your decision. Is your partner on board with the idea? How will your decision affect all your other family members? If your
plan is to generate an income from some other source rather than a regular day job, it may take time to build your business
up. Depending upon your choices and dedication to your new ventures you may make a significantly less amount of money for
a very long time. You may never match your old income or you may wildly exceed your
expectations and make a lot of money. This brings me to a second consideration – uncertainty.
If you can deal with uncertainty, then extreme retirement
may be for you. However, many people do not like uncertainty and should avoid it if it generates too much emotional stress.
Will you be able to deal with the uncertainty of an unstable income? Can you deal with the uncertainty of how you will spend
each day or will the days just drift by you aimlessly? One of the biggest adjustments that an extreme retiree will need to
make is the sudden lack of structure to each day. Although most people hold the fantasy idea of this being a wonderful thing,
many find it tough to deal with because they end up doing nothing day in, day out and then rapidly fall into a funk, leading
to depression.
A third factor
to consider is how you will deal with family and friends when you retire early. Will you be ready for their criticisms and
worries? Well-meaning family (especially moms and dads) can really wear you out about a decision that they cannot understand
and think is financial suicide. If you can show them that you have thought things out, have a plan and understand their worry
you will be better able to deflect a lot of their concerns. Friends may be overly critical because they are actually jealous
of your bold decision to take an extreme early retirement. Think about ways to deal with all the naysayers that you will encounter.
Once you've given some careful thought to
these issues you will have made the very first steps to deciding what is right for you and living the retirement lifestyle that you want. Cutting back on expenses and learning to live frugally will be part of your plan too, so be sure to check
out the links in my Bio box below.
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Kerry
Hook - About the Author:
Kerry Hook has a website for all those who
want to live well for less. Retirees of all ages are welcome! The Frugal Retiree, loaded with fun quotes, money saving tips,
new hobbies and health articles that will help you live a quality life on a frugal budget. Visit: http://www.thefrugalretiree.com to learn more.
Read more: http://www.articlesbase.com/advice-articles/is-extreme-early-retirement-right-for-you-3932775.html#ixzz1Bsagabea ..
I'm Ready to Retire...But Where?
If
you've already done your homework and created a budget you're next step is to decide where to retire. Are you more
interested in the cheapest places to retire, the best places to retire, the safest places to live or are you ready for a brand
new adventure and want to re-invent yourself when you retire? If you know the answer, then it's time to take a look at your
options. Statistics are proving that more and more men and women fifty and over are opting to move to new cities and towns
so we've put together some pages to help you make those decisions.
Related
Article: Finding your retirement g-spot!
more .
Early Retirement
The world is often a confusing place and nowhere is the confusion likely to be so
complete as in the tax system. Here we have the best brains in the Government taking on the best brains in the private sector.
The Government wants the maximum tax take. The private sector wants to arrange things so that no one with money ever has to
pay any tax. Somewhere in the middle the two world-views collide and, usually, some tax is paid. Anyway, when President Obama
signed the healthcare reform bill into law, some of the largest employers in the US let out a collective sigh of pain. As
an example, Caterpillar is the world's largest manufacturer of excavators and bulldozers. The day after the President's signature,
Caterpillar announced it was taking a charge of $100 million to earnings over an expected loss of tax benefits. A number of
other influential corporations have also made allowances in their accounts. The reason is that the healthcare reform ended
a tax break given to cover the cost of supplying drugs to early retirees.
Let's take this step by step. If a person
continues to work, he or she will be covered under the employer's plan. All other things being equal, working up until you
are entitled to Medicare gives continuity of coverage. But there was always a problem if someone took early retirement. Insurance
companies were reluctant to insure older people who might more quickly develop serious medical problems. So, to give people
aged between 55 and 64 a bridge until they became eligible for Medicare, employers were given a tax break to enable them to
pay for their ex-employees' drugs. With the disappearance of the tax break, employers were therefore left with an obligation
to pay for drugs without any relief.
Acting through Kathleen Sebelius, Secretary to the Department of Health and
Human Services, President Obama has announced a $5 billion package to offset the loss of the tax break. This will run from
June 2010 to January 2014 when the individual health plans offered through the new exchanges should come onto the market.
It is estimated that about 4,500 private and public employers will be eligible to claim from this new fund. The intention
is to provide continuity of coverage under the current health plans and it will be condition that the employers maintain their
contributions, i.e. federal money is a top-up not a substitute for payment by employers. Ms Sebelius has also made it clear
that the individual health plans offered to early retirees must include coverage for chronic and high-cost diseases and disorders.
Employers cannot cherry pick the diseases to be covered. That means the victims of heart attacks or those diagnosed with diabetes
and cancer will get continuing support under the plans if federal funding is to be drawn down.
In general, the
business community has been slow in showing its gratitude. The feeling seems to be that Government made a mistake when pushing
through the reform bill and was now offering a fraction of the total money required to fill in the hole. Nevertheless, the
President has recognized the problem and made funds available to help offset it. Whether these funds will prove sufficient
is something we will have to wait and see. For the retirees, it should mean access to benefits with fewer hassles.
Article Source: http://www.articlesbase.com/insurance-articles/early-retirement-2591651.html
About the Author
David
Mayer is a frequent contributor to http://www.hiinetwork.com/employer-health-insurance-plans-get-a-boost.html and is a highly regarded writer, having professionally dealt with numerous subjects. Visit
the site to read David Mayer's contributions.
