David Giertz Offers His Advice To Early Retirees

Some people decide they’ve had enough of work and choose to retire early. They want to get a start on enjoying their life free of the constraints a job puts on them. Early retirement is a possibility for people but it should only be done after careful thinking. Most importantly, a person needs to have enough money put away to make this a feasible option. One issue, too, is that money put away in retirement accounts can be expensive to take out as they are meant to not be tapped until at least age 60.

David Giertz has been a financial services advisor for three decades. He has helped a number of clients who wanted to retire early and he has helped them determine if it was possible or not. He worked for a number of years for Nationwide Financial. He was also a financial services advisor at Citigroup. He has three main tips for anyone looking to retire early.

His first tip is that people should save as much as they can while they still have jobs. David Giertz says the general rule of thumb is to have ten times what you earn a year saved by age 60. By doing this if they retire at the normal age for retirement, 65, they will have 15 times their annual income put away. If someone wants to retire younger, like 50 or 55, they’re going to have to save an even larger percentage of their income each year.

He also says people need to be flexible if they want to rerire early, and he suggests they have a Roth IRA. People can withdraw from this type of retirement account without any penalties. David Geirtz says, though, that you have to earn less than $118,000 a year for this type of account to be available.

Finally, he says to invest what you have saved. Taxable accounts are an option for those who want to retire early as you can take the money out any time you like. Money can also be put into an HSA which will help with any future healthcare costs.