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What if you can retire very early? Is it worth the sacrifice?

Could retirement before you’re even eligible to join AARP be the ultimate impossible dream? Not if you’re consistently disciplined, focused, driven and don’t give a hoot about what the Joneses think of that beat-up Ford in the driveway, say experts.

Whether you live to work or work to live is a question frequently answered in favor of living by couples who have break out of the daily grind before the traditional “early” retirement age of 50+. What’s more, they’re not going quietly, but instead are springing up on Web sites and in media interviews, telling their stories and encouraging others to follow suit.

Out of the mainstream
Extreme early retirement strikes a positive note with people now more than in the past. While going against the fearsome icon of the “company man” used to be part of the ’60s counterculture, Some are claiming to see a resurgence of the attitude among 20+ year olds who are rejecting the “Have it All” mind set that began in the 1980s.

Aside from a focus on their goal and an indifferent attitude toward accumulating all the latest stuff, extreme early retirees can’t be combined into the same category. They range from young parents, singles and multiple income married folks without kids.

They are excited about their lives, and look forward to spending time in personal pursuits that are meaningful to them.

Living The Less Complicated lifestyle
Work hard, spend little, save a lot and spend wisely. Other tips include:

• Set spending and investment priorities now for the future
• Invest in stocks through index and mutual funds
• Use the compounding effect of time by investing early
• Seek a partner with the same financial values
• Stay 100 percent out of debt, except for a mortgage

Pursue Your Passions
Finding passion outside of a career that had become a chore is a theme among most extreme early retirees. The opportunity to travel to exotic locations and meet people from foreign lands has given many a global view that no amount of money can buy. The extra time and the freedom to choose how to spend it are a few of the most satisfying aspects of very early retirement.

Not Everyone will Bless Your Decision
Whether it’s pure envy or jealousy towards anyone who steps off life’s historical treadmill, extreme early retirees often face unexpected opposition. Does it bother them. For the most part no. They are living their own version of the big dream.

Gain the Spirit of the Entrepreneur
Make it a goal to be debt free. Live below your means, even when your investments generate higher than expected income. Discipline is the key.

Some compare extreme early retirement to extreme sports. Extreme sports can be risky and you must be in great physical condition. Early retirement is risky, because what you’re preparing for a long period of time without income…and you have to be in unique financial shape to do it.

After an initial financial plan is developed, whether informally penciled on the back of an envelope or with a financial planner, it has to be watched and adjusted. Setting yourself up to receive the same income no matter how the markets perform can result in financial disaster.Jut keep in mind that the objective is not to tap the principal.”

Once you begin it’s amazing how fast principal erodes, leaving you with a smaller pot from which to draw income. Suggestion: A portfolio should remain fairly aggressive in equities, up to 70 percent of the total. However we caution against any one size fts all approach when it comes to what’s considered aggressive. You can be aggressive in your budget, and bumb in investments. A well balanced mix will typically return an average of 8-10% over a period of time

The portfolio, rather than a job, is providing income, and like an entrepreneur, a retiree should be constantly watching and adjusting the rate of income. Train yourself to think like entrepreneurs. Adjusting your lifestyle to your income can be a dangerous thing to do. Just remember that when you mess with your principle you have just changed the game plan.