Image Source : FREEPIK By starting even a small SIP of Rs 500 per month, investors can see their money grow over time, which will serve as an incentive to keep saving and making future investments. (Photo for representation only.)
Early retirement: Countless people intend to leave the workplace at an early age. The choices you make as a young adult might very well decide whether you can retire early. If you make the best use of your opportunities, you may indeed be capable of setting the milestone for accomplishing your retirement goals.
Many people wish to retire early in order to travel, pursue other interests, or continue living life according to their own terms. If you want to retire early, you must commit to the goal from an early age. And if you take these steps in your twenties, you’ll find yourself in a more advantageous position to oversee a workplace exit on your desired schedule.
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Experts offer advice on how to retire early and some investment tips for your early 20s.
According to Atul Goel, MD, Goel Ganga Group, “Real estate is an excellent means of guaranteeing your retirement by providing additional income sources, and for good reason: it offers consistent cash flow, produces higher tax benefits, and diversifies your portfolio. When making an early real estate investment, first decide what type of estate you want to acquire. When a long time period and potential for appreciation are taken into account, having invested in a land parcel is preferable because the land tract does not fall in value and there aren’t any maintenance fees. Real estate is a high-returning asset that also serves as an inflation hedge. Because real estate has historically been inversely related to conventional assets, it can be a good way to diversify your investments and also to secure.”
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“People’s most common financial mistake is delaying investments. This is common because people believe they have enough time to achieve their financial goals and believe that delaying 5 to 10 years won’t make much of a difference. However, this delay may make it difficult to meet your financial goals in the future. However, there are two simple ways for investors in their twenties to get started investing early. The first is to enrol in the Employees Provident Fund (EPF) to begin saving for retirement as soon as one begins earning,” Amit Gupta, MD, SAG Infotech, said.
“Start a Mutual Fund Systematic Investment Plan as an alternative (SIP). By starting even a small SIP of Rs 500 per month, investors can see their money grow over time, which will serve as an incentive to keep saving and making future investments. However, one must begin investing immediately and take the first step. Individual investors must invest the time and effort required to gain fundamental financial knowledge. As one learns more about investing, one’s funds will be better structured.Even if one can only save a small amount each month, such as Rs 1000 or Rs 2000, one will get fairly close to one‘s financial goals. Furthermore, by emphasising savings, one can make moderate and small changes to one’s daily spending without drastically altering one’s lifestyle,” Gupta added.
According to Siddharth Maurya, Resource Specialist, Expertise Real-Estate and Fund Management, “When you’re in your twenties, retirement appears to be so far away that it doesn’t seem real. Anyone approaching retirement age will inform you that the years fly by, and accumulating a small asset becomes difficult. Investing early is regarded as one of the wisest decisions. To begin, we can pursue the FIRE (financial independence, retire early) movement, which prioritises saving and continuing to invest 50% more than one’s earnings so you’re able to invest in your twenties when you have the fewest responsibilities and retire before your sixties. Second, mutual funds’ systematic investment plans (SIP) are regarded to be among the ideal investment options for retirement.”
“Finally, there are stocks. The past demonstrates that equity is the best long-term asset and has the ability to generate wealth for investors in the longterm. Over the past ten years, the NIFTY50 (India’s index of the top 50 stocks) has brought back 10.3% CAGR (Source: NSE India). So, if you saved through stocks month by month for a decade, you should really have managed to accumulate 2.7 crores with a month – to – month investment of 55000,” said Siddharth Maurya.
Suren Goyal, Partner RPS Group said that “Consumers should begin investing early in order to secure ample growth time. It necessitates strategic planning, which does include a retirement plan, time frame, and clear objectives. Investors in the real estate market need thorough preparation and expertise, and consumers ought to be knowledgeable in industry trends that can be advantageous, as well as investment advice, tax benefits, and so forth. Individuals may review and fully comprehend the tax calculation, as well as the implications that can result from professional assistance. Investigate attractive deals with potential gains and a variety of returns on investments. Finally, investment tracking is required to keep track of performance.”
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