We all dream of retiring early from our work and spending our lives leisurely with our family and friends but only a few of us could make it.
It is very true that we all have different lives and financial conditions and all cannot quit jobs altogether at the age of 30 or 40. However, we can prepare ourselves for financial independence much before we retire and strive for early and happy retirement.
Here are four important tips that we can follow:
With hard work and smart investment plans, we can achieve our goal of early retirement. Start planning your retirement from the early days of your job and start investing for it. Make sure that you diversify your investments among different plans. MoneySpring helps you to choose the plan that suits your risk appetite.
While saving for your retirement, take care of inflation. Study the inflation rate before you jump into the investment market. The rate of return of the plan you have chosen should be able to beat the inflation rate. Keep in mind that your lifestyle, expenditures, rates of return, taxes, rate of inflation and many other factors will change till the time you reach your age of retirement.
If you are planning to retire early, the key is to make sure you have enough savings to sustain after retirement. Early retirement demands a very strong investment plan and once you choose your right investment plan, just trust it and stick to it. At MoneySpring, we help you calculate savings required and right Mutual Funds for the same.
The most important tip for those who wish to retire early is to invest in a tax saving plan. ELSS i.e Equity Linked Saving Scheme is a Mutual funds scheme and by investing in it you can save tax under section 80C of the Income tax act. This is a Win-Win situation as you are saving for your future and at the same time-saving taxes.
If you too dream of spending time with family than working late night in your office, start investing. This is the only mantra to retire early without comprising on your lifestyle and expenses. You will have enough money to have a better life after you retire.