What should you be invested in? You’ll probably want to be more conservative than before retirement. Yet that does not mean abandoning stocks. With potentially 20 or more years in retirement, inflation can eat away at lower returning assets. Even at a modest 3% annual rate, inflation could cut your standard of living in half in 24 years.
To decide if you should accept an early retirement offer, you can’t just look at the offer itself. You have to consider your total financial picture. Can you afford to retire early? Even if you can, will you still be able to reach all of your retirement goals? These are complicated questions that a financial professional should help you sort out, but you can take some basic steps yourself.