"A dream that never comes true" – Retirement vision.

Wish you could retire right now?

Give up the rat race, embrace a life of independence, reduce your stress, and have more time for what you value most — your family, education, travel? That might seem like a fantasy but early retirement is within reach of most western people, if they would only take the steps to make it happen

Indians have a different mindset from the which is completely different from people in the Western countries

In India, we generally start off earning pretty late, especially the salaried class. Due to huge unemployment,

We need to go on raising the eligibility bar and today a post graduate degree has become bare minimum for good jobs. When we start late, we necessarily reach our goals late.

There are some other socio economic reasons. First, since we do not have Social security cover of any sort, we have to make sure that we save enough for our old age. Normally your Provident fund etc. grows with your number of years in service and terminal benefits are also maximum if you serve a full term. So everyone wants to work till superannuation. This is an economic reason. The socio factor is, by tradition our family bondages are thicker than those in West. Hence we not only wish to save for ourselves but also want to leave a good slice for our children, which is not very heard of in the West. All these accumulations need time and hence early retirement is ruled out.

Early retirement planning is identical to conventional retirement planning with one big exception – time. You have less time to achieve your financial goals, and more time that your money must last after retiring.

Early Retirement Tip #1: Have a Plan :

The first mistake most people make is they lack a written plan to build financial_security.

You can’t put the formula for financial success to work for you without a plan to accomplish it.

It may be a simple process, but it won’t happen randomly. You make it happen by taking action. A written plan with goals provides the road map and is a necessary first step.

Are you planning for early retirement ? Seek advice of a financial planner who will make ease for you .

Just leave a missed call @022 62116588 and have a personalised financial planner for FREE. 

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Early Retirement Tips #2 : Saving For Future 

The first step to financial independence is figuring out where your money is going now. Monitoring and, if possible, reducing, your current spending has two important benefits: it frees up more money to be put aside in savings, and it reduces the amount you need each year to live on, thus lowering the total amount you need to save.

Rule of thumb is that, before you retire, you should save 25 to 30 times’ your annual spending.

While the 4% rule has come under attack in recent years — many financial experts argue that it’s too optimistic a number given the outlook for lower financial-market returns in the future — early retirees say it worked for them even in years when the markets performed poorly, such as the market downturn in 2009. The key is flexibility; that is, being able to trim costs so that you can withdraw less in years when the market is down.

Early Retirement Tips #3: How to invest?

The most important aspect of investments is “Financial discipline” as most often than not, we may falter and do not adhere to the objective of investment in the long run, it is easier said than done, as many a time we may discontinue, withdraw or utilize the funds earmarked for a specific goal (retirement) for other reasons due to many reasons be it medical emergencies, or changing aspirations or opportunistic investments etc.

There are numerous investment vehicles but to choose the one best suited and customized is once again a difficult task. When you do this, you have to determine the inflation adjusted corpus required at vesting age and the monthly amount of Investment needed to achieve the same.

Early Retirement Tips #4 manage your taxes

Just as when we’re working, taxes are a consideration in retirement, whether you retire early or not. It’s crucial to include an estimate of your annual tax bill in your “total savings needed” amount.

Your tax bill may come in a variety of flavors. If you’re pulling your income out of a taxable brokerage account, you’ll most likely owe capital gains on those distributions.