retirement

6 signs that you are ready to retire early

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6. Your portfolio can withstand losses
6. Your portfolio can withstand losses | Chris Ryan/Getty Images

6. Your portfolio can withstand losses

Because everyone's standard of living is different, there's no magic amount that automatically qualifies you for early retirement.

But a portfolio that is large and diversified by asset class can protect you in bad markets. A portfolio that's composed of different types of tax-deferred and tax-free assets is more likely to generate enough income to sustain a long retirement than one that isn't.

One gauge of whether you are ready to retire is the amount you have saved as a multiple of your income. According to Fidelity Investments, you should save at least 10 times your pre-retirement income by age 67 to ensure a secure retirement. If you want to retire earlier than that, you should probably aim for more.

Start a savings account now for your retirement. Compare savings account rates today!

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