9 Steps to Early Retirement

7) The qualified retirement plan

Take full advantage of your qualified retirement plans. This would include IRAs and 401K accounts, especially company matched accounts. You can think of retirement in two phases: the years you retire before 65 years old, and the years after 65 years old.

Once you hit 65, you are likely to pull money from these qualified retirement accounts, social security and any pensions you may have had. Even a modest contribution into these accounts can result in a very good gain, as well as tax protection and free money from employee contributions.

By thinking of retirement in two separate blocks you can save for both the pre and post legal retirement age thereby using the early retirement savings to get you to the common retirement age. Utilizing your qualified retirement accounts and loading as much money as you can into them will ensure you have enough to cover yourself years into retirement.