How to retire early: Hate 9-5 job? Prepare for early retirement with these tips

If you are looking for How to retire early? then you came to the right place, there are so many people who are not happy with their routine 9-5 jobs these days. Be it a single man or a single woman, or a family person, regular jobs are not something they want to be engaged in till the age of retirement. It won’t be wrong to say that you are earning a significant percentage of the employees working in the private sector want to retire early so that they pursue their individual interests. But, their people are so many are confused about how to plan for early retirement. The biggest hurdle which came is it comes in the way of early retirement planning is money. However, with a little planning and following a financial discipline can leade you to be ne can realize the dream of retiring early.

For those looking to attain financial independence and early retirement, Harsh Jain, Co-founder and COO, Groww has shared following tips to follow to ensure they are headed in the right direction:

early retirement planning india

Start Early

The first thing you should have to do for building the desired corpus is to start as early as possible. Starting of the early works lead you to be the only to in your favor for many reasons – it gives you the flexibility to stomach risks by investing in high-risk high reward the total avenues that accelerate wealth creation.

If you start investing in the around the age of 24-25 for your retirement this could be the best by the time you are 35 and still not overburdened with other financial obligations that you would have accumulated to know and quite a lot. Needless to say, that the earlier you should start the more you would be able to accumulate your retirement, the better are your chances of reaching your retirement corpus earlier.

Make the right investment

Since long term wealth creation is your objective and it makes sense to invest in investment instruments that offer you inflation-beating returns. Mutual funds are the best and in this aspect will definitely come to your aid.

Suppose you are now 25 years of age and want to now and want to retire by the time you are 40. In this case, the idea of your ideal portfolio will be a mix of equity and debt with more exposure to equity. So for the first few years, you have to say like10 years your portfolio can be 80% equity and 20% debt and as you near the retirement corpus or the retirement age, you can reverse the percentage of the money to rebalance your portfolio. This will tell and ensure that your risk is so much less and your risk is minimized by the time you choose to redeem your funds after reaching the desired retirement corpus.

Automate your investments through SIP

Like any other goal same the building your retirement fund requires dedicated effort. The best way to make sure that you are the only one diligently working towards this goal is to automate your investing via SIP. The SIP is the only thing that will make sure that you never forget to invest in which may not be the case with lump sum investments as you would have to consciously remember. Investing in the same likely as equity funds via SIP mode also frees you from the hassles of timing the market. When you Start early that time you make money fast and take retire fast with the help of the SIP route will be light on your pocket; the compounding and the effect of small sums over a long period will gain so much help you beat inflation by a substantial margin.

Increase Your investment amount with an increase in income

As your income increases then you should have also can proportionally top up the amount towards your retirement fund. You can also utilize yearly bonuses that money you can invest and increments to boost investments towards your retirement to reach the goal faster.

Buy a Health Insurance with adequate cover

By health insurance when you get any injuries or disease you will not lose your money with adequate cover to meet the rising costs of medical expenses. Get insurance as it will benefit you buy early as possible as the premiums get costlier with age. Good health plan insurance will ensure you that whenever you don’t have to be in the dip into your retirement corpus to fund medical contingencies.

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