So, Can You Retire Early?

Ah, to be able to quit full-time job when you're still young.....40, 50, 55, 60.......?

It's every one's dream to retire early. The snag here - you got to get down to work, really hard now.

How hard?

Well, face the reality - you got to:

1. Save ferociously by putting away a large pile of money as your nest egg. You might have to think about stashing away at least 30% of your paycheck every month.

2. Save your extra income. Like your bonuses, commissions, inheritance, overtime pays......

3. Cut down on expenses, especially unneccessary ones. Your mission - stash your money away first, 30%, 40%, whatever. Then budget smartly around the remaining amount. Of course, don't make life too hard for yourself; you need to enjoy life's trappings too.

4. Invest aggressively. Put at least 75% of your money in stocks, until you near your retirement. Then start to switch more toward bonds. You would feel scared, putting so much of your hard-earned money in stocks because the market could melt down, drain away your money and ruin your plans. But, you've got to take a certain level of risk to get the higher returns from stocks, to quickly build up your pile of money.

Don't know how to invest? Go for a target-date retirement fund. Choose a fund with a date that roughly corresponds to the year you plan to retire, say the 2040 fund (if you're in your early 40s). You get a fully diversified portfolio that's suitable for your age. Save you all the headaches!

5. Review your investment portfolio yearly; this is because over time, some of your investments may soar while others tank or lose money.

As you want to stay on track for retirement, you got to take stock to recalculate and restore your portfolio mix to its appropriate balance by liquidating winning stocks and plowing the proceeds into losing ones.

Don't overlook this task. It's path to the proverbial stock market wisdom: buying low and selling high, helping you to reduce your portfolio risks and enhance your returns.

6. Fill your riskiest gap - the health insurance. Make sure your family is adequately covered. Then see what's yours where you work (i.e. before you retire).

All companies with 20 or more employees must offer departing employees coverage for up to 18 months, under the law known as COBRA. You pay the insurance but it's likely lower than a private policy.

When COBRA runs out, you either look for a job that includes health coverage (though quite hard to find a company that offers insurance to part-time workers) or take up private health insurance.

7. Start a business. Be prepared to work hard to succeed because stats show that most small businesses fail within 5 years.

On the other hand, a successful business can build wealth faster than your investment in stocks.

8. Plan a career after you've call it quit. Working part-time, one-off assignment, project-based consulting work, utilizing your expertise. It's a tidy stream of income and you won't have to touch your retirement savings.

Due to her strong yearning to retire early in life, Cecelia Yap has been researching on the subject of retirement. She has found the most "viral" way to grow her retirement nest egg and you too can do what she does, retirement