I'm Retiring at 45: Here's How We Prepped for Early Retirement and Our Financial Journey

Early retirement is possible, but this Reddit poster shows that it requires careful planning

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Most people retire in their 60s, and some plan to work even later because they have concerns their future financial stability and their ability to make their nest egg last

Some dream of early retirement, though, and are able to make it happen and buy themselves the freedom to the life they want for many more years

One Reddit user is in this situation

The poster has indicated being on track with her husband to retire at the very young age of 45

The poster also d some details personal finances to demonstrate the actions taken to be ready and the steps taken to ensure enough confidence to leave work young and rely on savings for many years to come

Posts from the firecommunity on Reddit Here are some details on how the original poster (OP) in the Reddit thread is making the dream of early retirement that so many aspire to a viable reality

Image source: Getty Images

Getting your finances ready for early retirement The OP vided a lot of insight into personal finances and discussed feeling ready to retire

Their plan is to off the cash savings they have, as well as to make withdrawals from their brokerage account and potentially convert some traditional retirement accounts to Roth accounts in order to optimize their tax situation

College and cars for their children are also taken care of

Based on all of these details, it seems that the couple is in pretty good shape

They seem to have thought ahead to prepare for bigger expenses, such as cars and school for their children; they've paid off debt and are giving themselves a buffer in spending to have wiggle room in case they end up spending more on hobbies, travel, or other indulgences in retirement

And they're getting tax help, so they're obviously not afraid to ask a fessional if needed

They've even made plans to ensure that the family's health insurance needs are covered once an employer is not available to subsidize coverage

This will free up some more wiggle room in their budget and will help to ensure that the family's funds last

A lot goes into retiring early -- but it's doable As this Reddit poster shows, taking the right steps can make it possible to your dream of early retirement

Anticipating as many big future expenses as possible before retiring

For example, the OP here thought ahead to the fact that her teenage children will need cars and budgeted for this in her retirement preparations

Making a plan for healthcare, as early retirement means you become responsible for covering insurance without assistance

A number of other Reddit posters praised the OP for the careful planning and for being ready to retire

Some also d their own early-retirement experiences and urged looking into health insurance coverage options carefully to get a full understanding of what types of expenses will be necessary and how comprehensive the coverage will be

With thousands in cash, the OP is also well prepared for emergencies without having to sell stock, and with a tax fessional to help, the family will look to minimize the amount they're sending to the government

Since they are young and healthy with lots of spare time, they must ensure they don't fall into the overspending trap

Others can the steps this Redditor took to try to achieve their own early-retirement journey as well, but it will require some discipline and diligent saving to make it happen

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