Retirement Planning: How to reach your goal of retiring early

financialexpress.com:

Retiring early, at an age before 60 or even 50, is becoming more and more appealing to many individuals, thanks to the increasing awareness of financial planning and the availability of various investment options. Attaining this objective necessitates a disciplined approach to saving and investing. However, the decision to retire early should not be made hastily. It is essential to evaluate your current financial situation and make adjustments to your investment and savings in line with your retirement objectives.

Early retirement becomes feasible once you achieve financial independence, where you are no longer reliant on your full-time job to support your lifestyle. Here is a guide on what steps to take if you are contemplating early retirement.

The first step is to understand your current financial situation. This includes evaluating your savings, investments, and liabilities. Create a comprehensive list of all your assets and debts to get a clear picture of your net worth. This will help you understand how much more you need to save and invest to reach your retirement goal.

Adhil Shetty, CEO of Bankbazaar.com, says, “Calculating the retirement corpus is crucial. This is the amount of money you need to sustain your lifestyle after retirement. Consider factors like inflation, life expectancy, healthcare costs and any other personal expenses. A popular rule of thumb is to aim for a corpus that is at least 25 to 30 times your annual expenses.”

Also Read: 6 ways to save tax without making any investment

* Mutual Funds: Mutual funds, especially equity mutual funds, are popular among early retirees. They offer the potential for high returns and are ideal for long-term investment. Systematic Investment Plans (SIPs) in