Reddit poster poses a crucial retirement question: Retire early or retire rich? — here are 3 things that can help you do both

Reddit user david8840 asked members of the r/Fire subreddit this question: “If you had a choice between retiring at 40 with a pre-tax retirement income of $125,000 per year, or retiring at 60 with $300,000 per year (in today's dollars), which would you choose and why?”

The name of this subreddit — FIRE — stands for “Financial Independence, Retire Early” which is a financial movement that motivates people to aim for financial independence before the traditional retirement age so they can retire early.

However, many Americans aren’t in a place where they could even consider FIRE as an option. A study from earlier this year by the National Institute on Retirement Security found that 55% of Americans are concerned they can’t reach financial security in retirement.

If you find yourself stuck on the question or you’re behind on your retirement saving, there are things you can do to safeguard your dreams for your golden years.

Here’s how you can work, invest and save toward the goal of retiring early and retiring rich as you decide which is the path to take.

Make a plan for your savings

Responses to david8840’s Reddit post were mixed. User ComprehensiveYam said “I’d probably stick it out a bit and go for rich. Having surpassed this level of income already I can say that it’d be tough to go back down the ladder especially given the freedom it gives us.”

Meanwhile lottadot wrote “If I could generate $125k/yr gross off my retirement assets at a 2-3% SWR I'd retire today.”

Finding the right vehicle for your retirement savings is a great place to start feeling confident in your post-work future.vPersonal finance personalities like Suze Orman have long touted the benefits of tax-advantaged retirement accounts like IRAs.

There are numerous options out there, including some that can help protect your retirement fund against economic volatility, such as a gold IRA.

By opening a gold IRA — a type of individual retirement account that allows you to invest in gold and other precious metals in physical forms — with the help of Rosland Capital you can enjoy the tax advantages of a traditional IRA and enjoy the inflation-hedging benefits of gold so you can work to diversify your portfolio and stabilize your finances at the same time.

Don't overlook your everyday bank account. If you want to make your accessible cash work harder for you, consider a no-fee checking and savings account with SoFi. SoFi offers up to 4.00% APY on savings balances — and 0.50% APY on checking balances.

With SoFi, you can also enjoy no-fee overdraft protection, early paycheck deposits and access to over 55,000 ATMs within the Allpoint network.

Speaking of deposits, sign up now and you can earn a bonus up to $300 for setting up direct deposit.

You can also check out our list of the Best High Yield Savings Accounts of 2024 to find some savvy savings options that earn you more than the national average of 0.4% APY.

If you’re unsure of what’s the right fit for your retirement fund, or just want to get professional advice so you feel confident in your retirement planning, it might be time to speak with a financial advisor.

With Zoe Financial, getting set up with a suitable — and professionally-vetted — advisor is easy. All you need to do is answer a few questions about your financial situation and goals, and they'll match you with a range of advisors. Plus, you can reach out for a completely free consultation to ensure you find the right fit.

Invest in alternative assets

Your stock portfolio isn’t the only vehicle that can help you ride into retirement in style. There are alternative investments that can not only be a solid way to save up money for retirement, but they can also provide you with passive income during retirement and supplement your nest egg.

And there are many platforms out there that make alternative investing accessible and simple, so you have a variety to choose from based on your financial goals and personal interests.

For instance, real estate values typically increase over time, even amidst the market’s ebbs and flows. This reliable appreciation makes real estate a trustworthy investment to fund your retirement.

You can dip your toes into residential real estate with Ark7 you can invest in shares of single and multi-family rental units in the U.S. without the burdens of buying and managing properties.

You can start by browsing through their curation selection of properties, vetted for their income earning and appreciation potential.

Once you’ve found a property that best fits your needs, you can choose how many shares you’d like to purchase, and start investing with as little as $20.

But residential properties aren't your only option for investing in real estate.

Accredited investors should check out First National Realty Partners, a company that allows you to invest in necessity-based commercial real estate without having to find the deals yourself.