Don't Retire Early Until You Do This
Many people have the goal of retiring early, whether it's to travel, pursue different hobbies, or simply enjoy a more laid-back schedule that doesn't involve spending 40 hours a week or more at the office. Now you might assume that if you've amassed a decent chunk of savings, you should be all set to retire early. But before you move forward with those plans, there's one essential move you'll need to make.
If you've saved well in your IRA or 401(k) plan, it's easy to look at the nice big number that represents your savings balance and assume you're all set. But rather than rely on an impressive-looking figure, it's important to figure out how much annual income your savings will actually provide you with.
If you're retiring early, you may need your savings to last a good 30 years, or maybe more. And so you'll probably want to be somewhat conservative in taking withdrawals.
Source Fool.com
