Wanted to Retire early? What measures to be kept in mind? Read Compilation by CA Sayan Ghosh

To retire young, you need to earn, save a lot and invest aggressively in planned and disciplined manner.

What to be kept in mind?

  • One could plan to retire early in life, say at 50. And then may be pursue a passion or a hobby to spend a major part of every day in his life.

  • Lot of people plan for such a life, but very few achieve the same.

  • To retire early, one should be able to earn handsomely early in life.

  • The next step is to not spend a lot but to save a lot.

  • The next step is to channelise those savings into investment products that would earn high returns during working years.

  • So a major part of the investments should preferably be through the systematic investment route into equity funds.

  • One should also seek the help of a good financial planner to put in place a plan that should help in achieving life's financial goals.

  • It's also important to have a post-retirement plan ready since an early retiree at 50, could be expected to have about 35-40 years of post- retirement life.

Suppose a 25 Year old with a monthly expenditure of about Rs.40,000/- and planning to retire at 45, would need a corpus of about Rs. 6.50 Crore. To achieve this the person would need to invest about Rs. 65,000/- per month, mostly in equities.

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