Don't follow this 'popular belief' when planning for early retirement, says former JPMorgan portfolio manager. (via CNBCMakeIt)
"If I want to retire early, I should solely focus on saving money as much money as possible right now. I'll figure everything else out later!"But as a former portfolio manager and the head of retirement solutions for JPMorgan Chase's asset management group, I've seen how this popular belief — that you should save money first,map out your retirement lifestyle — holds people back from a financially stress-free retirement.
In fact, deciding how you want to live as a retiree will take pressure off your initial retirement savings goal. Who knows? Maybe you'll want to take on a meaningful part-time job or aMy point is that you can't possibly know how much you need to save or when you can retire until you have an idea of how you plan to spend that money.I've spoken with many people who plan to move when they retire, whether to another city, state or even country.
That wasn't the reality. We spent weekends doing household chores just like everyone else. We missed being close to friends and family. The activities weren't readily accessible. Plus, we didn't have a car, so we had to walk to and from the grocery store. Ultimately, we realized that living in Italy wasn't the fantasy we'd imagined, and moved back to the U.S.
Similarly, if you plan to spend a lot of time in a club or playing a sport, decide if you like the hobby and the associated people before dedicating your lifestyle to it.