Want To Retire by 50? Here’s What Redditors Say You Should Do To Make It Happen

On top of goods and services getting pricier by the day, the age of retirement age has steadily increased, creating a sense of uncertainty for many people who dream of enjoying their golden years. Despite this discouraging trend, however, there are strategies we can adopt to put ourselves on track for an early retirement, potentially by age 50. (I refuse to believe that we were put on this Earth to just work ourselves to death; but that's a conversation for another day).

If you're looking to get a head start on your retirement, check out what these Redditors had to say about building a robust retirement nest egg. 

Investing in a 401k or Roth IRA is a key strategy for early retirement, Redditors say. By contributing as much as you can to retirement accounts and taking advantage of any employer-matching programs and tax breaks, you can maximize your savings potential. Over time, the power of compounding returns (contributions are typically pre-taxed, so you can save even more) can help put you in a much better financial position. 

"Retirement accounts such as a company-matched 401k is automatic 100% gain for the matching amount," writes one Redditor, adding, "If that's not enough reason for retirement accounts, consider that there are protections to 401k and IRAs against creditors and personal liabilities if things go south for you."

You may have heard the saying, "Always live below your means," and there's definitely truth in that, Redditors say. "Save even more," writes one Redditor, highlighting the importance of cutting back on luxury and unnecessary expenses if you want to retire early. "If you’re going to buy a car, buy a cheap reliable one, and when spending money, I would ask myself if the purchase is a necessity, or if it will help you earn more money in the long run."

Millions of Americans are burdened by student loans and other forms of debt, with 81% of adults saying they had to delay "key life milestones" because of it. This burden not only drains our bank accounts, it also multiplies in interest and limits our ability to achieve financial goals such as homeownership, retirement savings, and overall financial stability. If you're in this boat, you should try and minimize all forms of debt, especially student loans, Redditors say. 

"I'm investing 16% of my income into retirement (+ a 4% match to get me to 20%) while paying $2500-$3,000 per month towards student loans," writes one savvy user in the r/StudentLoans subreddit.

Though some people (ahem, Elon Musk) swear that investing in cryptocurrency can make you filthy rich, these kinds of investments are known for their volatility due to factors such as market speculation, regulatory uncertainty, and rapid price fluctuations. Investing heavily in crypto and single stocks is like "playing with fire," writes one user, adding, "I strongly advise you [to] put that money into broad market funds to ratchet down the risk." 

Research and invest in safer sectors such as health care, banking, and consumer staples. Look for established companies with a history of stable earnings, a solid track record of dividend payments, and strong financials, experts say. 

Related: Things You Wanted to Know About Cryptocurrencies but Were Afraid to Ask

Another strategy involves purchasing property and renting it out to generate passive income through monthly rental payments that can eventually help cover your mortgage. This strategy leverages real estate as an investment asset to provide consistent cash flow, Redditors say. "The plan when we retire is to sell our (what will be) paid off primary residence and use the proceeds ($300K in today's dollars) to build our retirement home on the property," writes one user.

Related: Airbnb Looks To Eliminate Hidden Fees and Make Pricing Clearer

A financial advisor can help you determine the optimal path to early retirement by crafting a personalized investment strategy. Your advisor's knowledge of investment options, market trends, and economic factors can help maximize the likelihood of achieving a safe and high-yield portfolio that is tailored to your individual circumstances and long-term retirement goals. Just be sure to do some research beforehand to make sure you're hiring a reputable advisor that will have your best interests in mind. 

"Yes, paying a financial advisor is worth it," says one Redditor, adding, "Because a financial advisor can make you many times [what] you pay them." 

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Taking up side hustles can be another powerful way to boost your savings. By leveraging your skills, time, and resources outside of your primary income, side hustles can provide additional streams of revenue that you can dedicate solely towards accelerating your retirement goals. "I would also look for side hustles and semi-passive money-earning opportunities," writes one user, describing how they used their savings to invest in a rental property instead of buying a new car.