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.
The entire contents of this article are solely for information purpose and have been prepared on the basis of relevant provisions and as per the information existing at the time of the preparation by the Author. Compliance Calendar LLP and the Author of this Article do not constitute any sort of professional advice or a formal recommendation. The author has undertaken utmost care to disseminate the true and correct view and doesn’t accept liability for any errors or omissions. You are kindly requested to verify and confirm the updates from the genuine sources before acting on any of the information’s provided hereinabove. Compliance Calendar LLP shall not be responsible for any loss or damage in any circumstances whatsoever.