The Secret To Early Retirement Is As Simple. Buy Closeouts And Overstock.

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People who save enough money for a secure retirement often start saving at an early age and save consistently throughout their career. Frugal consumers know how to clip coupons, wait for deals on manufacturer overstock merchandise, and search ads for retailers who want to sell unwanted inventory and closeouts. Waiting for sales and deals from inventory liquidators is a great tool for helping to save money. Super savers tend to max out their retirement accounts and take advantage of a 401(k) match and other types of employer contributions. It also helps to avoid taxes and fees whenever possible. Here are some strategies successful savers use. Retailers always have tons of overstock either early before a selling season or they may have leftover inventory from Christmas and too much stock left in the warehouse.

Beginning to save for retirement in your 20s and 30s allows you to start generating valuable compound interest that will accumulate over decades. Tucking away even a small amount will get you into the habit of saving for the future. If you want to buy a new big screen TV, consider last year's model because there may be overstock merchandise sitting in a warehouse of older models. These models are closeouts that the manufacturer may be willing to sell below cost just to make space in the warehouse for new products. If the warehouse fills up with old merchandise that isn't selling, the manufacture may have to shut down operations if they have too much dead inventory that stops selling. In effect, you can be like inventory liquidators who take old inventory for a big discount. Reducing prices to get rid of old inventory is common practice for manufacturers to sell unwanted inventory especially if they sent too much inventory to the warehouse. Take care to sign up for a 401(k) or other type of retirement savings account at your first job and save regularly. If you don't have access to a 401(k) or want to do additional tax-deferred savings, you can open an IRA. Funding a Roth IRA can be especially beneficial for young people, who can take advantage of decades of growth and tax-free withdrawals in retirement.

Companies that buy excess inventory from businesses that want to sell unwanted inventory have different names that all mean the same thing. They can be called inventory liquidators, closeout buyers, overstock buyers or companies that buy overstock merchandise. They are willing to buy entire inventories of closeouts of pet products, closeout housewares and home goods, excess inventory of toys, sporting goods and even overstock picture frames and any other discontinued products taking up space in the warehouse. Inventory liquidators have been around since the 1930's and they can help you salvage your overstock or clear out warehouse space for new projects. Many people start out saving a modest amount of money, or are automatically enrolled in a 401(k) plan at a low savings rate. As your income grows, increase the amount you divert to your savings accounts. One simple strategy is to increase your savings rate by 1% each year or when you get a raise. It can also help to save a portion of windfalls such as bonuses or tax refunds. Some 401(k) plans offer automatic escalation, which will gradually increase your contribution amount over time. Remember to take advantage of catch-up contributions to 401(k)s and IRAs at age 50 and older.

If you have an idea of what you want to do in retirement, consider trying out some of the activities. Perhaps you’ve always wanted to spend time on the road in an RV but have never vacationed in one. You might rent a motor home for a weekend or two and take a trip nearby to see if you enjoy this mode of travel. “Practicing retirement provides an opportunity to sample things that you may want to spend more time experiencing during retirement,” says Eric Ross, senior wealth advisor at Madison Wealth Management in Cincinnati. You could fall in love with RV travel, or you may opt for a different way to explore. If you own a business and sales are decreasing, consider selling off old inventory cheap as a way to generate cash flow. Old merchandise sitting in the warehouse can be sold to wholesale closeout liquidators that specialize in buying closeouts, discontinued inventory and overstock merchandise. Sell unwanted inventory in large volume to make space in the warehouse for new products, before it's too late and you have new seasonal products coming and need to make room in the warehouse. If you are going out of business by the end of the year, start working on the overstock problem early by contacting inventory liquidators. If your company was bought out and has excess inventory this is also a situation where you can sell unwanted inventory that is leftover to overstock merchandise buyers. During the working years, you may have felt like you were carrying out important tasks or meaningful work. Knowing your purpose is often just as important in retirement. “The real danger is for those that think they will figure this out during retirement,” Ross says. “I have seen transitions to retirement be more successful when there is a defined purpose or at least a plan to find one’s purpose.” You might want to mentor students, help support other seniors that have reduced mobility or spend more time with your loved ones.

Think about what you earn annually and if you’ll need the same income during retirement. “How much you want to live on will determine how big your nest egg needs to be,” says Stephen J. Landersman, president of Unifi Advisors in Harrisburg, Pennsylvania. “Most will need to accumulate about 35 times the income they desire for their retirement lifestyle.” If you like shopping and buying things, clip coupons, look for sales and only buy when things are closeouts on sale or overstock merchandise sold on promotion. There are companies that buy in bulk and get overstock deals or discontinued products cheap and they will pass the savings along to the consumers. Look for closeouts of toys, sporting goods and even overstock housewares for gifts around the holidays. Excess stock from previous seasons make some of the best closeouts because they need to get rid of old inventory that is sitting in the warehouse collecting dust. If you plan to take a part-time job during retirement to stay active, factor that into your future budget. You’ll also want to account for inflation and the impact it could have on your savings. If inflation is higher than the return you receive on your investments, your ability to maintain your desired lifestyle could become difficult.

If you retire before 59 1/2, you'll usually pay a 10 percent early withdrawal penalty from most tax-deferred accounts, such as traditional IRAs and 401(k) plans. “There are some options for getting IRA money before 59 1/2, but it's tricky and can cause major penalties if done incorrectly,” says Matt Stephens, founder of AdvicePoint in Wilmington, North Carolina. But be careful not to spend all your money on things. You may need to change your habits and instead of shopping at department stores, shop at discount stores where you can get closeouts and deals on overstock merchandise. Instead of shopping at the major big box stores you may need to start shopping at the dollar store where they have deals from businesses that were stuck with old and surplus inventory so they sold it off to make space in the warehouse. There are companies that are inventory liquidators and they specialize in looking for bargains they can sell to overstock buyers like Dollar Tree, Ollies, 99 Only and other surplus merchandise operations. By shopping these stores you can save 50% to 75% off regular cost. They get special deals from closeout brokers that may have been overstocked in the warehouse, or maybe from a business that closed and needed to empty out the warehouse. Other opportunities come from shutting down warehouses, having items stranded in an Amazon warehouse to get rid of urgently, excess stock at Amazon FBA warehouse, new seasonal products arriving and needing to make space in the warehouse, etc.

Unless you have a Roth IRA, which is funded with after-tax contributions, you'll owe income taxes on the amount you withdraw from traditional accounts funded with pretax contributions. If, for example, you withdraw $20,000 from an IRA before age 59 1/2 and are in the 15 percent federal tax bracket, you'll pay $5,000 in taxes and penalties, leaving you with $15,000. Rather than spending these tax dollars and giving up 25% you are better off waiting to retire later so you can spend money on things you want. These can still be canceled orders, closeouts, overstock inventory deals and deals where companies have to liquidate excess inventory and discontinued products.

Working in retirement might not be as simple as you think. While 74 percent of workers plan to work for pay in retirement, according to the EBRI study, just 27 percent of actual retirees reported working for pay. Even part-time work can be a challenge. You might consider part time work at a dollar store or local discount store where they only sell closeouts, surplus inventory, or sell dead stock. Liquidation inventory creates opportunities for frugal shoppers on a budget that need to spend money on overstock items for sale. “One thing early retirees don’t seem to realize is that if they are planning on doing traditional part-time work while retired, those jobs require a commitment to a schedule that sometimes is not very flexible,” says Leslie Beck, a certified financial planner in Rutherford, New Jersey. “This can cut into other retirement goals such as travel or visiting with family. I have had retirees surprised by the inflexibility of part-time work.

Merchandise USA liquidates excess inventory of closeouts on toys, overstock housewares, discontinued products including home goods, lawn and garden and closeouts of pet products, picture frames, giftware and stationery products with school supplies. We have been in business 38 years and we buy liquidation stock for any reason including excess merchandise, shutting down 3PL warehouse, wholesale surplus leftover from shutting down operations, excess inventory from new products arriving and closeouts from closing down operations and all inventory being liquidated.