The Secrets to Early Retirement and Living in Luxury

Derek Notman |

How great it would be to be able to retire early! Imagine 55? Or even 45! How amazing that would be! Well, it's one thing to imagine it, and another thing altogether actually making it happen – and contrary to popular belief, it is achievable. With the right mindset and the right plan.

Most of us expect to work until 65 and maybe even into our 70s. Early retirement might seem like an unattainable dream for you right now, but there are some simple steps you can take to make that dream into a reality. Here are the secrets to early retirement and living in luxury.

Create a written plan

A vital part of achieving early retirement is by creating a written financial plan. Now, investing falls under this, but there is a lot more to it.

A written financial plan is comprehensive in nature and will address all manner of financial and non-financial components to help you get where you want to be in life.  Questions like “How much are you going to need to save every month in order to attain early retirement and sustain it?” and “How much do I need to have in my nest egg to stay retired forever?” are just some of the things a written financial plan can address.

Also keep in mind that most people in retirement stop working, so ask yourself the following:

  • What is luxury living for you?
  • Are you thinking of traveling?
  • How many vacations a year would you like to go on?
  • Do you want to buy a second home, on the beach?

And then ask, how am I going to pay for all of this, especially if I retire early?

To some, luxury means being able to eat out frequently, to have a beautiful home, and to wear the finest clothing. To others, it may mean living in a beach house in Florida and living it up. Luxury, to me, means not having to worry about money while being able to do whatever it is I want to do. So, figure this out – as in, work out what a luxurious life will cost you for 30 years and then set out a realistic roadmap for saving and investing.

Start saving now but first create a vision board

This may seem like an obvious one, but you need to start saving now.  But how much should I be saving you may ask?  Well, it depends, on a lot!

Before saving or even putting together a written financial plan make sure to create a vision board of your hopes, dreams, and goals for the future.  Not only will this excite and motivate you but it is essentially starting with the end goals in mind.  You can then back into how much it will all cost and then create a written plan on how to make it all come true.

While you are still young and working, take the time now to put aside funds for your retirement. A variety of online cash flow tools can help you track all the money you spend each month, and determine if and where you should make adjustments, like those delicious coffees from the café down the road or that extra weekend getaway every year.  Be honest with your spending if you want to get serious about increasing your wealth and retiring early.

Look at where you can cut back and do it. If you ask me, retiring comfortably at 45 is a luxury in itself. By saving now, it will make things easier further down the road. Plus, you can invest those savings in smart ways to grow true wealth. Be conscious that savings alone will not get you there, but it is part of a written plan that you are taking action on each and every day..

An interesting thing to think about is in this article: You need to save 25 times your annual living expenses before retiring.  I am not sure I completely agree with all of their points but the overall concept of saving is certainly there.

25 times your annual living expenses may seem like a lot now, but with the right plan and by making the right decisions, you can most certainly achieve it or figure out if you need to adjust it for your specific situation.

Another form of investing for your future is to actually invest in hiring a financial advisor.  It has been shown in a number of studies that working with a qualified planner that truly has your best interests at heart and that educates you can greatly improve your overall returns as well as keep you on track as life happens.  If you hire a financial advisor do not take the decision lightly, find someone whom you trust, get along with, that understands and listens to you, and that you simply just feel good working with.


Set realistic goals and invest

When creating a retirement plan, be realistic. Look at ways in which you can make your money work for you. There are smart ways to grow your money exponentially with minimal risk. I've gone into depth about this before, but learning about the different IRAs is crucial to achieving early retirement, and perhaps even doing so in luxury.

When it comes to saving for an early retirement a big part of it comes down to how much you put in and how early you started. Don't be afraid to dream big but work out a net figure that will give you enough to live on each year in a lifestyle that suits you. Being realistic doesn't mean setting yourself easy goals. On the other hand, you do not want to set yourself up for failure, either.

By leveraging the right accounts and investment strategies, like trend following, can be part of your key to an early retirement.  But even before this it is important to have a written plan on how to make everything you do work in concert to get what you want.  Living a life of luxury is a choice and must be planned for.

Living in Luxury

Some may say that living in luxury is a bad or negative thing to want in life.  I disagree.  Nothing wrong with having nice things, enjoying amazing experiences, and simply enjoying the finer things in life.  Just don’t do it by standing on the backs of others as you pursue wealth and all that it encompasses.

There is nothing wrong with working hard and enjoying the fruits of your labor.  If you want a beach house, get it.  If you want a $100,000 watch on your wrist, then buy it.  If you want to fly first class, then do it.  There is nothing wrong with these things as long as you still maintain a solid moral compass and don’t flaunt it in other peoples faces to show off.  Be humble, be kind, and enjoy a life of luxury.

Simply put, the secret to an early retirement and living in luxury is to plan for it.  It certainly won’t happen by accident!

I hope this inspires you to take the right steps towards an early retirement filled with luxury wherever you may be.

Thanks for reading,


Have specific investment or portfolio questions?

contact us today!

Tribe of Luxury Blog

Life is too short, why not enjoy it in luxury?