8 Key Signs You’re Ready To Retire Early (Even If Your Financial Advisor Disagrees)

Core Insights - The article emphasizes that early retirement is achievable for many Americans if they are willing to adjust their lifestyle and financial expectations rather than simply accumulating wealth [1][4]. Group 1: Understanding Early Retirement - Early retirement is not solely about having substantial savings but rather about knowing one's "enough" number and living intentionally within that budget [3][4]. - Successful early retirees often reduce their spending by 15% to 25% for the first five to seven years, allowing them to retire with less than the traditional 25 times their annual expenses [5]. Group 2: Income Diversification - Individuals prepared for early retirement typically have multiple income streams rather than relying on a single nest egg, which helps manage taxes and market fluctuations [6]. - Examples of diversified income include consulting gigs, rental properties, and brokerage accounts, which can provide more flexibility during retirement [7]. Group 3: Debt Management - Managing debt is crucial for early retirement; while being mortgage-free is ideal, having manageable debt that does not force the sale of investments in a downturn is important [8]. - A low-rate mortgage may be acceptable if it fits within a reduced budget and there are sufficient assets to cover it [8].