Why Retiring in Your 30s Is a Terrible Financial Strategy

Making enough money to retire early is a great achievement but also comes with its own share of difficult decisions.
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Though it may sound like an idyllic situation, retiring at 30 has some major pitfalls. Retiring from your job doesn't mean retiring from your life. Working keeps you occupied and gives you structure, whereas retiring in your 30s can be a waste of skills and training. With no work salary, or perhaps just an early pension, planning for the rest of your life realistically means stretching your assets for the next fifty or sixty years. A $10 million portfolio may support one young retiree but if you have children or an unexpected change of circumstances you may run into difficulty. As Benjamin Sullivan, a certified financial planner with Palisades Hudson Financial Group points out, 'You're talking about decades — for some, a full lifetime — that you'll have to fill on a fixed income. Even if you don't get bored, you might have a child (or another one), get divorced, get remarried or become ill. You can plan for a few of those scenarios, but it gets tougher to prepare for all of them if you're going into this plan with someone else.' So if you are going to retire early, make a life plan as well as a financial plan to avoid just drifting.