Are you tired of your 9 to 5 job and want to free yourself from the shackles of your mundane schedule? Then why not plan your early retirement!
Retirement at 40 is the dream of many. People adopt various ways to save enough so they can retire at 40 and pursue their hobbies and interests. It may seem difficult at first, but it is not so. You can plan your early retirement very easily.
So if you are searching for the answer to how you can retire early, we have a few tips for you.
1. Start as early as you can
The earlier you invest, the better are your chances of accumulating enough money for retirement. Starting at an early age helps you take greater risks and get better rewards. Also, you would have to commit a lesser part of income towards your retirement savings. You must consider investing in an annuity plan as early as possible. An annuity calculator can help you get an idea of the premiums that you must pay to prepare for your retirement.
2. Choose the right mode of investment
3. SIPs are good
SIPs can make saving for your retirement easier. When you opt for a SIP, some amount is diverted from your account every month towards a market fund of your choice. The best thing about SIP is that you do not have to make payments every month. SIPs offer you a range of investment avenues to choose from. You can take your pick of debt and equity instruments to balance out the risk and maximise the returns. SIP, when compounded, will provide a lump sum and can be a great option for your retirement.
4. Increasing investment with increasing income ?
One of the best ways to retire early is to accumulate a significant amount as early as possible. You can achieve this by increasing your investment as your income increases. If you are investing in annuity plans, then you can use an annuity calculator to calculate how much you should increase your monthly savings as your income increases. This can go a long way in helping you realise your dream of an early retirement.
If you plan to retire early, you must also ensure that your other life responsibilities are well taken care of. You can invest in child plan, health insurance, and a life insurance policy to take care of any expenses and secure your family and yourself against any eventuality.