Planning for your retirement is an investment in your future, and knowing how to retire by 60 is a great goal. While most Americans will retire by age 65, you can reach the mark of retiring by the time you are 60 with an aggressive savings plan. The key to retirement, no matter your age, is planning ahead.
The first aspect you must consider when planning your retirement is how much money you will need to live on. You must also think about how long you'll live after you retire. For example, if you think your life will continue into your 80's, then you need to have more retirement money in hand for the additional 20 years (or more) that you'll be alive. Similarly, if you need to support a lifestyle that includes six digits, your savings and investments must begin while you are very young.
As soon as you are out of college and working, you should meet with a financial advisor and determine which plan of action is best for your lifestyle. Most people choose a mix of funds in which to invest, as opposed to putting money away in a savings account. You might have a savings plan, a money market account, certificates of deposit, mutual funds or money invested in the stock market. If your employer offers a 401(k) plan, use this avenue as your employer will also be contributing to the account. This is free money for you! You can also put money in an Individual Retirement Account (IRA). This money will not be taxed unless you withdraw it.
Only a financial advisor and tax expert can fully advise you about the best plan of action, but you can also do your part by learning about the types of retirement investments you can make. If you plan well, you will have no problem retiring by 60.