When you think of retirement age, you probably think of someone in their late 50s or 60s, and there’s a reason for that: it’s the norm. All the governments schemes allow us to start taking benefit at the age of 60.If you withdraw early there is penalty.
But this is taking a shift, financial independence; Retiring Early trend is quickly gaining momentum especially in the millennial generation. Now, people are thinking of financial independence at the age age of 30s or 40s.
This trend of financial independence, Retiring Early (FIRE) is more about having the freedom to pursue your dreams and ambitions and not to be tied to your jobs for whole life.
The most difficult question arises while planning for early retirement is- How much money I need to retire early? For this one has to identify his INFLATION adjusted annual expenses, his current financial situation and number of years of expenses he want to save.
If you are considering how you can retire early, here are few ideas that can help you reach an early retirement goal:
Make an investment plan that has a high probability of success
Once you have calculated the amount of savings and future income you will need, you’ll want to spend time researching the various ways you can structure savings and investments so they produce consistent and reliable retirement income.
The investments you will now choose need to provide income for your remaining lifetime, and you can’t afford to make mistakes, so take the time to do careful research, and don’t hesitate to seek qualified professional help.
Disciplined saving and investment
The earlier you wish to retire, the more you need to save in your working years. While many aspects of your career are beyond your control, how much you invest is in your hands, so do it aggressively and in disciplined way.
Build a right portfolio
To retire early, your investment should earn high rate of return. Earning high returns will only be possible with the right asset allocation in your retirement portfolio. Your asset allocation must take into account your risk appetite and the time left for retirement. You should diversify your portfolio through these investment options
If planned meticulously, there is no reason why early retirement can’t be the leisurely and pleasant experience you have envisaged it to be.