Yahoo Finance 5 Careers That Might Help You Retire Early
Maybe you are familiar with the phrase “FIRE,” and if so, are already taking steps to make it happen. If you are not in the know when it comes to fire, don’t worry, you are not going to get burned. In fact, you’ll be glad to know what it is before you head into the workforce. “FIRE” is an acronym that stands for “Financially Independent, Retire Early” and is used to describe those who are figuring out ways to set themselves up financially for the rest of their lives, then leaving the job market early to pursue what they love.
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Where to start? Well, at the beginning, perhaps even with the first real job you seek out and then build out from there.
“If I could go back in time and talk to my younger self, I’d give her a few tips on how to start planning for early retirement right from her first job,” reminisced Annie Cole, money coach and founder at Money Essentials for Women. “I remember getting my first job in high school as a restaurant host, cleaning tables and working alongside my best friend, making less than $10 an hour. Back then, no one was telling me to invest for my future, let alone teaching me how to plan for early retirement. In fact, most of my earnings went right back into the restaurant for a nightly $20 pizza and lemonade.”
While not everyone can start saving and investing based on their first part-time job, there are a few careers to check out to get you on the road to FIRE.
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Sales
“Sales positions, especially those with commission structures, can be a game-changer,” said Dalton Tigner of Tigner Insurance & Associates, Inc. “These roles not only offer high earning potential right out of the gate but also teach invaluable skills like negotiation and relationship management.”
“I’ve observed colleagues who excelled in sales roles save significant portions of their income, letting compounding work its magic over the years,” Tigner recalled. “Starting in a sales position with a company that offers 401(k) matching can amplify these benefits as you build your retirement savings.”
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College Educator
“It’s not that hard to become a teacher — all you really need is a degree in education and you can even become a teacher without that,” remarked David Bakke, a personal finance expert at DollarSanity.
“Becoming a college teacher takes a bit more work but if you can make it to that level, you’ll have a pension and tenure which makes it difficult to lose your job,” Bakke explained and added that “[y]ou can almost definitely retire early in this area.”
Tech and Software Development
The tech industry is renowned for high starting salaries and substantial benefits, according to Tigner.
“Positions such as software developers or data analysts often come with lucrative stock options and profit-sharing plans,” Tigner described.
“A former client who started as a junior developer at a startup accumulated significant wealth by investing their stock options early on, eventually leveraging this to establish a diverse investment portfolio leading to an expedited retirement timeline,” Tigner said.
Pilot
Being a pilot is not for the faint of heart but if you’re up for the task you can almost definitely retire early, in Bakke’s professional opinion.
“The annual pay is around $150,000, the benefits are great, plus in this career you probably won’t have the desire to travel since you’ve already flown everywhere so you can retire early without worrying about travel expenses,” Bakke pointed out.
Financial Services
Tigner noted how roles in financial sectors like banking or investment firms can also set you on a path to early retirement.
“These positions often come with robust financial planning benefits and the knowledge to navigate personal investments effectively,” Tigner shared.
“For instance, an entry-level financial analyst at our company utilized the knowledge and resources from our financial planning assistance program to build a strong investment portfolio, further buoyed by our profit-sharing and ESOP plans,” offered Tigner, noting how “this dual advantage of earning while learning about intelligent investment paved their way to early financial independence.”
FIRE Tips
Here are some tips on how to make an early retirement happen.
Invest Early
“Most people spend their younger years thinking ‘I’ll get around to investing for my retirement later,” Cole said. “But here’s the thing — if you start investing at a young age, your money will grow by tens of thousands of dollars, even millions of dollars, by the time you’re older, and you’ll spend less money to get there.”
As an example, Cole offered how someone could “…invest just $200 a month from age 20 to 60, you’ll be a millionaire by the time you’re 60 (assuming 10% annual growth on your investment). If you wait and start investing at 30? You’ll have to invest $500 a month to become a millionaire by 60. Start young and you’ll be able to build wealth while putting away less.”
Set Good Financial Habits Young
“Build good financial habits now, and they’ll serve you for life,” Cole recommended.
“So many people are working into their 70s because they spent every penny they made, they never saved, or they got themselves into debt,” Cole said. “How you manage your money now will influence how you manage your money forever. Create a budget, make a habit of spending less than you earn, and avoid the allure of credit cards.”
Have Confidence in Your Financial Self
Lastly, Cole recalled how “I would tell my younger self that she is capable of so much more than she ever thought possible when it comes to money. In this world, you’ll encounter a lot of bad advice: It’s normal to work forever, it’s normal to go into debt to keep up with the Joneses, it’s normal to feel shame and guilt around money.”
Cole said that this is simply just not the truth when you get into the real working world.
“Starting in jobs that offer strong financial incentives and benefits packages can greatly enhance your ability to retire early,” Tigner said. “Choosing roles where you can leverage company-sponsored retirement plans, stock options, and financial bonuses are essential strategies.”
“You can make good money, enjoy it without shame, and retire early. And it all starts with the money habits you’re building right now with this first job,” Cole said.
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This article originally appeared on GOBankingRates.com: 5 Careers That Might Help You Retire Early
