The reasons for premature retirement can be many. Some people wish to retire early, because they are physically tired or bored of their jobs. A few others are eager to retire earlier due to health related reasons. Many times, during our course of employment or business management, we are unable to do some things which we are very fond of. We may not get time for our hobbies like traveling, reading, collecting precious things, etc. Some people serving in a company may want to retire from their job to start their own business. These days, many people consider the idea of retiring early and shifting their base to the outskirts of the city to live a happy, comfortable and peaceful life away from the pollution and daily woes of the big metro cities. People want to spend some quality time for themselves and their family. However, early retirement planning should be systematic and should not lead to any kind of loss to the person retiring. Here are some early retirement planning insights for the people planning for early retirement.
Do You Really Want to Retire?
All people who want to retire should ask this question to themselves. If your inner mind says 'yes', only then you should proceed with your plans. Decision of early retirement is the most difficult decision to make. Avoid thinking of retiring just because some of your friend has retired or a person close to you is suggesting you to do so. Follow your heart and take a right decision keeping in mind the future and well-being of you and your family and relatives.
Ensure Your Financial Independence
Thinking about your financial independence and good financial condition is very important while planning for early retirement. For several years, you have been used to being independent and managing your finances on your own. So, you may be in an awkward position to ask someone to help you just because you are no longer working even though you have a good health. The early retirement planning should start at least five years before the date of quitting your work. People planning for early retirement should be more cautious while spending their money and avoid unnecessary wastage of money. You may have to compromise on a few things but this compromise will help you in your later life. It is recommended that people planning for early retirement should invest their money in different saving schemes, real estates, bonds, etc. to strengthen their financial position in the days of retirement. Avoid taking loans which are beyond your capacity to repay and especially those taken against credit cards which have a high rate of interest. Before investing your money, make sure that you are investing in government approved institutions which have a history of giving good returns to the investors. Consult an investment analyst especially while making risky investment choices like mutual funds and the stock market. It is essential to have a life insurance policy and medical insurance which will be useful for you and your family.
Be Sure About Your Post Retirement Plans
Plan what you will be doing after your retirement, much before you retire. If you are planning to start your own venture, do a lot of research on all the aspects related to that business. Investing your money blindly without thinking of the consequences of your actions can affect your entire family. If you do not plan things in advance, you may be totally confused and bored later on.
Completing Your Responsibilities and Duties
It is a wise decision to complete your vital responsibilities as the main earning member of your house before you retire. The responsibilities may include educating your children, marriage of your children, setting aside money for their and your health, etc.
An early retirement can help you do things, which you could not think of doing in your professional life. With proper and systematic planning, you can make the most of these golden days of your life.
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