Over the years, there has been a dramatic change in the thinking for professionals across the country. Most young professionals are filled with innovative ideas and are enthusiastic enough to make their dream businesses ideas breathe to life. Surprisingly, a large majority of professionals look forward to work for a few years, accumulate some wealth and then retire to pursue their dream jobs!
Sadly, very few such people think about building up a retirement corpus to ensure a healthy, happy and peaceful post retirement life for their families and loved ones. Those who do not care about planning their retirement and calculating their retirement corpus using a pension calculator, before retiring early, are often left in a lurch with nothing but their savings to bank upon for both their household needs and their business needs.
In addition, there is no guarantee that one business idea will thrive in today’s ever-so-competitive and ever-so-chaotic market. This means that if your start up business fails, you will be left with nothing and your post retirement life will be full of woes and worries.
This is the reason why we have decided to put up some tips and tricks to help you retire sooner and richer. So let’s pull the curtains and show you these easy tips to retire sooner and richer.
Tips and Tricks to Retire Richer and Sooner:
1: Factor in Your Life Expectancy
First things first, you will need to carefully mull over your life expectancy to get an idea of the time frame for which you need to save money and build retirement corpus. Take into consideration your health history and family’s medical background to decide on the number of years you’re going to live and then calculate the amount of money you will need to build the retirement corpus for using a pension calculator.
2: Consider Health Expenses and Inflation
Now that you have calculated the number of years you are going to live, it makes sense to understand what obstacles can make your money vanish into thin air during this tenure. Majorly there are two things that can deplete your wealth – inflation and health care expenses. So it makes sense to carefully consider these two factors when planning your early retirement using a pension calculator. Remember, without taking these two factors into account, you will not be able to successfully plan your retirement.
3: Break-up of Your Retirement Corpus
Okay, now you will need to think about how you much you will need to save to build an effective retirement corpus to support your early retirement. Once you are able to figure out the total amount that you need to accumulate as early retirement corpus using a pension calculator, do well to start investing smartly to achieve this goal of yours.
4: Get-Rich-Quick Schemes Won’t Work
You will see a number of schemes available in the market that will offer you quick and hefty returns on your investments. But remember, these schemes are usually high-risk schemes and there is no guarantee that you will become rich. You may even end up losing all your hard-earned money. So we would advise you to refrain from investing your money into such schemes.
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5: Investing in Stocks Could Be Great Option
A large number of working professionals fear investing their money in stocks as they believe that they might not be able to score a good return and many of them also fear that they may end up losing their money due to market risk. Consider investing in a diverse portfolio of long-term investment plans. You may go for equity mutual fund schemes. Investing in such a manner will help you take calculated risks, thereby protecting your hard earned money. Also, invest in schemes that offer regular monthly pay outs upon retirement. Take help of pension calculators to see how much amount you will need per month to survive without having to compromise in your or your loved ones’ comfort.
6: Cut on Your Spending
Remember, a penny saved is a penny earned. So it makes sense to start cutting on any extra or non-important expenses you may have. Cutting your expenses will help you save more and will help you maximize your returns. Here, pension calculator could come in handy to see how much monthly expenses you will need to cut to save a sizable corpus.
7: Look for Additional Earning Opportunities
If you have ample time in hand and can take up additional responsibilities, look out ways to earn extra money using your skills. Start freelancing for clients, create a blog or launch a You Tube channel. No matter what you do, just make sure that you are doing something that is of your interest. This will help you sharpen your skills as well as earn extra money that you can contribute towards building a better retirement corpus for early retirement.
Wrapping it Up!
Retiring sooner and richer is just not a prose and can be easily achieved by anyone. However, you will need to approach it very systematically. Otherwise, you will not just be risking your future but the future of your loved ones too.
Start planning your early retirement as early as possible and start contributing a sizable amount of your income towards your early retirement corpus. Get in touch with expert financial advisors and financial planners if you are looking for help. Better yet, simply follow the tips that we have mentioned in the article to almost guarantee you to retire sooner and richer.