Many people desire to retire early but believe this goal is out of reach. However, the financial services professionals at Wilson, Rea, Beckel & Associates CPA’s LLC in Pagosa Springs, CO, say it is actually quite possible with careful planning and by following a few insider tips.

Below, they list three steps you should follow to achieve your goal of early retirement:

• Create a Plan: Most people do not seriously consider retirement until they are several decades into their careers. If you desire to retire early, you must create and begin following a plan much earlier. Determine how much income you will need to pay for your expenses and chosen lifestyle, and remember you will not be able to access Social Security and Medicare until the normal retirement age. Once you know how much money you need to save, create a specific roadmap to achieving this goal.
• Exercise Extreme Frugality: The simplest way to increase your savings is to trim your budget. Early retirees must build their assets more rapidly than traditional ones, so they must be willing to make lifestyle sacrifices now to enable them to live the life they want later on. Financial services professionals say if you have an early retirement target date of seven to 10 years from now, you should attempt to save as much as 70% of your annual income until then.
• Inflation-Proof Your Financial Portfolio: Inflation destroys the purchasing power of your assets over time, and the length of your retirement will compound that problem. Consequently, you cannot rely on traditional fixed investments like annuities and pensions to provide you with the income you need. Take an active approach to investing that includes inflation-resistant assets such as real estate and equities. Since these have historically outperformed inflation, your hard-earned money will retain its purchasing power throughout your retirement.

If you need help developing an early retirement strategy, contact the financial services professionals at Wilson, Rea, Beckel & Associates CPA’s LLC. They have served Pagosa Springs and the surrounding area for more than 16 years and have the expertise to assist you with all of your personal financial planning questions. Call (970) 731-1040 to schedule an appointment with a CPA, or visit their website to learn more.