How to Retire Early in 2023?

From The Great Resignation to the FIRE (Financial Independence, Retire Early) movements, the idea of giving up a 9-5 job has taken root and dramatically shifted the way people now prioritise their commitment to a traditional job.

Unlike any other generation before, ours has had more time to be at home by ourselves over the past few years. When you have that time, people start to make changes – be they voluntary or involuntary. For many, this has been the trigger to start considering their early retirement.

And with good reason, too! After all, why should we settle for a job that we’re not happy in when there are other things we could be doing instead? Of course, it takes careful planning to retire early – not least because you need to work out ways of ensuring your financial independence – but it’s a goal worth working towards.

Retiring early is not out of reach for you, even if you are still in your 20s or 30s. 

But it requires a savvy investment plan and a commitment to building up your savings. If you can find ways of making more money from your investments (or simply earning more over a shorter amount of time), it’s possible for you to retire as soon as 2023.

Financial Independence, Retire Early – Is it Possible?

For those who are unfamiliar with FIRE, it is a movement comprised of devotees who want to gain enough financial freedom to retire at a young age. They accomplish this by extreme saving: being very frugal and content with living minimally leading up to and during their “retirement”. While this pathway is not for me personally, I truly admire their aspiration to save and invest as much income as possible in order to retire comfortably one day. Their dedication is evident through investing in index funds or real estate, for example.

At Ironfish, we set our aspirations a little higher. Retiring earlier than the traditional retirement age may mean making some sacrifices now. However, what FIRE followers preach is possibly too extreme and unsustainable (not to mention unenjoyable) for most. A reasonable approach would be to start enjoying the fruits of your labour as well as more money to enjoy life’s luxuries in 10 – 15 years’ time.

Most early retirees I know don’t spend all their time travelling or playing golf. Most of them are still working because for them a lifetime of leisure would be boring. Instead, they follow their passions and pursue a sense of purpose – which is still pretty awesome!

Life is about leaving a mark and bringing value to people; work that you are passionate about can often be part of that. I know of some kids from wealthy families who are effectively born into retirement and are low on energy for life. Others work long hours but are full of energy and positivity. In China, we say it’s the balance – yin and yang – of leisure and work. The beauty is in the choice: you can work because you desire to and on your conditions, not because you’re forced to.

How is Early Retirement Achievable?

I think that retiring early is an excellent objective to have; in addition to gaining personal independence and removing the need for governmental support, you can contribute to economic growth, spend money supporting local businesses, and invest in other ventures.

If you’re a younger person looking to retire early, look at setting your goals early in 2023, and follow these key steps:

1. Commit to the goal of retiring early and be prepared to do what it takes to achieve it.
2. Define what retirement means to you; what type of lifestyle do you want?
3. Figure out how much income you will need to be able to do those things.
4. Work out how much net asset you need that will deliver that income
5. Assess where you are at currently, and decide what you need to do to get where you want to be and by when
6. Build a strategy – having the right people to support you in this is critical.

For many, this strategy will involve working really hard for 10-15 years in your career and continuously building up your income. At the same time, investing 10-20% of that income into appreciating and income-producing assets, such as property, is one of the safest methods of investing in Australia. That’s because property values in Australia are generally quite stable, plus it provides a regular passive income stream from renters.

Despite popular belief, there are still ways to enter the property market without breaking the bank. Moreover, although interest rates may slowly begin to rise, they are still currently at an all-time low.

Retirement = Happiness?

It is generally believed that retirement equals happiness for many people, as it marks the end of a long and often stressful career. However, this may not be the case for everyone, as there are many other factors that contribute to our sense of contentment in life. 

Some people find fulfilment in their careers, which can provide a sense of purpose and a sense of contribution to the world. Others enjoy more leisure time, whether it be taking up a new hobby or simply enjoying more free time with friends and family. 

Whatever your individual aspirations may be, it is important to focus on what really makes you happy, in order to have a fulfilling retirement. Although some people believe that being happy means “not having to work 9-5,” there are a lot of content and fulfilled individuals who have traditional jobs.

Ultimately, happiness is a very personal and individual experience. It comes from many different sources, and there is no “right” or “wrong” way to achieve it. Whether you choose to retire early or continue working for many years, the most important thing is that you find happiness in your life and live it fully.

At Ironfish, we envision a brighter financial future for the people of Australia. We believe that each individual has the potential to become financially secure and live a comfortable life through smarter property investmenting. Feeling secure financially provides assurance and peace of mind which is essential to financial wellbeing. Our mission is to provide access to quality properties, enabling people to make wise investments and secure their wealth over the long term. By giving Australians the knowledge, resources, and support they need, Ironfish aims to empower individuals to take charge of their own financial futures.

If 2023 is the year you make a retirement goal for yourself, then speak to us; we’d love to help you put a strategy in place to make it happen.