WANT TO RETIRE IN 40S?
HERE’S WHAT YOU NEED TO DO?
Unlike most of them, who associate 50s with slowing down and retirement, do you wish to retire at 40s? That too a life full of fun and adventure minus the usual earning worries.
Well, like anything else in life, you sow what you reap. The way you live, work or invest in your early ages play a big role in enjoying life in your golden years.
Here is a list of things that you need to focus on in your present to have a great future (post retirement).
DETERMINE THE RETIREMENT CORPUS VALUE
If you are clear about your financial goal, you can achieve it faster and hassle-free. Decide on a rough value or corpus that you believe is required to fund your use to lifestyle, your dreams and your ambitions post retirement. In doing so, you will need to consider a host of factors such as number of working years left, your desired lifestyle post retirement, cost of funding the desired/use to lifestyle, inflation, life expectancy based on family history, etc.
You can click on the link to get an estimate of how much you need to accumulate for a peaceful and stress-free retirement life. It is a simple to use retirement planning calculator and it will help you get an estimate of wealth required at the time of retirement.
START “TODAY”
When it comes to savings and/or investing, it needs to be done today (if not already done yesterday). The saying, start early to reach early and safely is 100% accurate in investments. Not only is it easier to start investing when you are younger (and have lesser responsibilities and obligations) but you can also avail the magic of compounding and get higher returns on your investments. Also, having time by your side, you can take high risk and attain great returns.
INVESTMENT STRATEGY
Your investment strategy needs to be in sync with your financial goals and risk-taking capacity. Let’s say, you are completely risk averse, then instruments like PPF, Fixed Deposits and Post Office saving schemes will be the best available options for you. But, if you can take risk for long-term gains, you can consider investing in mutual fund schemes or equity.
CONSIDER PROTECTION BASED INVESTMENT
Sufficient health insurance and general insurance for yourself as well as your dependents is a quintessential for smart retirement planning. It extends financial support in an emergency and gives you the peace of mind even in difficult situations. Additionally, maintain an emergency fund (of about 3-6months) that can take care of your day-to-day needs in case of an emergency.
TIMELY REVIEW
No financial plan can be successful without timely review and amendments. Make it an annual practice to review and balance your retirement plan.
Deepak Dhabalia
Wealth Coach
