People dream of early retirement. After all, you would want to enjoy your hard work sooner rather than later. At whatever age early retirement is for you, you need to plan well for it. Because without a good “exit” strategy from the workforce, your retirement could get pushed back to a later age.
But how do you ensure retirement at 60 or even 50? Here is a quick guide.
1. Save money.
Spending money is easy, which makes saving a challenge. It is good to reward yourself with vacations and luxury items when you make enough at work. But you need to ensure that a portion of what you earn ends up in the bank. Otherwise, you risk your financial future.
2. Find other sources of income.
But don’t just rely on your savings to secure early retirement. The trouble with saving money in the bank is inflation. The value of what you save isn’t likely to be the same several years after. So you don’t, as the saying goes, want to put all your eggs in one basket.
Diversify and find another source of income to add to your retirement fund. A good option is to get into the stock market. With relative ease in online trading and mobile technology allowing investments from anywhere, anytime, you can trade in the forex market (currencies), blue chips (established, financially secure companies) or commodities (e.g., gold, oil, etc.).
Of course, you need access to relevant data to make sound investments. Online equities broker Rakuten Trade gives you access to sector, economic and company reports. You can use its app to activate your trading requirements completely online. You can open your account, trade and settle because the online broker provides Straight Through Processing (STP). For serious mobile trading, you can use its iSPEED.my, Malaysia’s first online trading platform.
But learn the finer points of trading before you venture into stocks.
3. Take care of your health.
Early retirement, ideally, means you’re in good shape. Not Only do you need good health to enjoy all the activities you envision in your retirement. But good health also means you don’t spend too much money on hospitals and medication. With the increasing cost of healthcare, you’ll need to look after yourself better.
The relaxing, wonderfully slow pace of days, more time with your loved ones—a reduction in stress. The allure of early retirement is understandable. You need to plan for it now to secure this goal. With a careful approach, you can expect financial security and fun for your retirement.