Are you ready to retire from the daily grind of your stressful nine to five job? How do you know that you are prepared to say goodbye to your office desk, to your co-workers and your boss once and for all? Well, there are certain parameters and benchmarks to consider in order to figure out if you are ready for early retirement. But before we get there, let us understand why retiring early can actually benefit you.
Table of Contents
Why retire early?
First and foremost the most obvious thing, retiring early will save you from all the headaches and unwanted stress which come in with you daily nine to five job. Finally, you can wake up without worrying about rushing through your morning schedule and battling your way through traffic and crowded trains, in order to reach on time to your workplace.
Retiring early can actually get you healthier. You do not need to find time from your hectic schedule to hit the gym; you have all the time in the world! If you are married and have children, you can actually give your kids hundred per cent attention and help them not only with their school studies but also with some extracurricular activities like teaching them swimming or taking them to learn their favorite sport, etc.
How do I know if I’m ready for early retirement?
The possibilities of what one can do with their free time post-retirement are endless; the question is ‘are you ready to retire early?’ Here are six signs which indicate that you could qualify for early retirement.
- You do not have to repay any loans/credits: If you do not have any home loans, no credit card dues, or any other kind of debt in your kitty, you need not worry about making any surplus payments during your retirement phase. This cancels out your possibility to work till the age of 60 as you are automatically saving more due to absence of any debts.
- You have sufficient savings: Because you started saving at an early stage, you have enough savings which meet your investment objective. Having a sufficient corpus is a good sign and might allow you to retire early.
- Your investment portfolio already has a retirement scheme: If you have already invested in retirement schemes like PPF (Public Provident Fund), NPS (National Pension Scheme) or a mutual fund, this means that you are financially prepared and ready to retire early. Investing in such schemes will help you build a decent corpus and might allow you to have an early retirement.
- You know how to survive on a fixed budget: Retirement life means you need to stay on a fixed budget. Pension is the only fixed monthly income which retirees usually receive. It might take some time to get used to living on a fixed income and hence it is recommended for individuals to practice living on a fixed budget before retiring.
- You have a PLAN B: Retiring early means you already have another plan on you mind, where you want to invest your time and energy in. You might have planned to open a café or a fine and dine restaurant. Or you might have planned to volunteer for an animal welfare foundation, or decided to go globetrotting. Basically, you know how to keep yourself thoroughly occupied and hence you are eligible for early retirement.
- You have invested in a good health scheme: The future is unpredictable and who knows, you might need a large surplus in case of any unfortunate health emergencies. If you are planning to retire early, this means that you have already invested in a healthcare scheme which covers you and your family members.
How can I plan early retirement?
If you too wish to retire early, you can consider investing in retirement planning with mutual fund. A retirement planning fund generally focuses on investors who are hoping to build a corpus that can allow them financial stability and security during their post-retirement life.
Investors should bear in mind that a retirement plans available in the market differ in the varying degrees of equity and debt allocation; investors should select a suitable retirement fund depending on their appetite for risk.
Invest for retirement in a product which aims at building a wealthy retirement corpus for investors. Retirement planning with mutual fund can be considered by those who wish to lead a secure and financially stable life after retirement and also for those who want to indulge in their passions, hobbies, or venture on foreign trips in their sunset years.
One can achieve an early retirement by investing in solution oriented funds like retirement saving funds. Invest smartly and who knows, you too might be able to enjoy early retirement life.