Early retirement.
Early Retirement is an improved version of Conventional Retirement. It is not he typical dream of “sit and eat” throughout.
What it means to me
2. not having to accept orders from bosses.
3. taking that 20 days off for my Himalayas trekking.
4. having the ability/skills to generate a living without depending on savings.
5. having time to spend with parents, spouse, kids & friends almost every day/week.
6. getting sound sleep every night. Period.
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| from our Sar Pass trek (my wife and myself on left side) |
How to plan for Early retirement
The following will be the logical steps involved
- . First Decide at what age you want to retire from your full-time job; Do that at least 10-12 years in advance so that you don’t miss any wealth creation opportunities.
- . Calculate your typical monthly expenses post retirement (without considering inflation parameters; planning tools will take care of adjusting for inflation) and hence the amount you want to retire with for a longevity of say 80 years
- . Execute your plans to save up that much money – The plan should include foreclosing any pending loans before retirement, a clear strategy for pre and post retirement investment, onetime big expenses etc. Also, do special planning for high-inflationary expenses such as medical (You need a good medical insurance for your family post retirement) and a term-life insurance well in advance
- . If the return on corpus investment do not seem sufficient, plan for a backup part-time job or go for alternate investment instruments (often high-risk, high-reward ones if you are retiring at a younger age)
1. Life isn’t fair, but it’s still good. |
The above life lesson in box is from the widely known, highly popular column by Regina Brett. “45 lessons, written by a 90 yearold” |
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