Retire young but feel secured
Personal Finance September 25th, 2007What if you retire young and get to do all that you have once wished to but couldn’t get time and the money to afford it? That will be great isn’t it?
If you wish to retire young, it’s important that you start planning for your financial security much before than a normal retiree. To begin with, you need to have a home of your own and for that you will have to take out a mortgage if you’re not buying with plain cash. Supplementing your home, there should be life insurance policies providing enough coverage for your life. And then, to cover your healthcare expenses, a health insurance policy can be an ideal one.
An early retirement is something that you can achieve if you have adequate funds that would serve as your retirement money – even higher than the savings of one who’d like to retire at the usual old age. While you start saving for your retirement, there’s one factor you need to take care of – that’s the inflation rate. This will keep you on your toes while you adjust the expenses, save and invest to build up an impressive retirement fund.
The most important aspect is to create an investment portfolio, which can give you better returns at retirement. And, for this, you need to do an equity research or if you don’t have the time, consult a financial advisor to help you plan your retirement. While the advisor can look out for the best options for investment, here are a few tips, which you may as well follow:
- If you wish to have a home of your own, start shopping for a mortgage – check out the rates offered by different lenders and the loan options too. Just do not go after lower rates; do check out the service background of the lender.
- The money remaining after paying off your monthly mortgage installments and insurance premiums should be invested in stocks having considerable growth rate potential.
- What about investing a small part of your income into art, wines and precious stones? Try it out. Though illiquid and risky, these can generate considerable returns in the long run.
Finally, if you wish to retire early, plan your finances accordingly and monitor your investments regularly. It takes time and proper planning before you can actually end up with something good!
Technorati Tags: retire young, retirement planning, financial planning
October 27th, 2007 at 2:22 am
That’s a great post Caron! Indeed, one has to take care of the fact that he has build up enough wealth for his future if he wishes to take an early retirement.
After all, one has to cope with inflation and at the same time, there are rising health-care costs; so when one grows old, he needs to have enough funds to maintain his lifestyle as well as pay for health-care. Off course, there are insurance programs like the Medicaid and Medicare but if one can afford it on his own, nothing’s better than that.
November 12th, 2008 at 5:11 pm
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