Want to retire soon? Here is your action plan
Here are some of the steps that you should take to plan your retirement:
1. Save and invest wisely: Disciplined savings (about 20% of your income) done month on month, and invested wisely in
2. Plan to pay off your debts: High interest debts are more likely to sabotage your retirement savings, if you don’t plan well. Also, housing loans usually are the long-term loans, which will take years to repay. If you plan well, you will be able to repay these loans by the time you retire, thus saving a big chunk of money for your post retirement living.
3. Refinance: Home loan
4. Minimize lifestyle inflation: Retirement can last 20+ years these days. If you minimize lifestyle inflation, then you’ll have more money to put towards retirement. In other words, be the ‘Master of the Middle’, wherein you are not in your extremes when it comes to spending.
5. Buy Insurance:It’s extremely important to protect yourself and your loved ones in case something happens. Ensure you buy a life and health insurance for yourself and dependents and pay the premium on time. It’s also a good idea to make a Will and update it whenever there is a significant life change.
6. Find alternate sources of income: Having diverse income streams is always better. This way if something goes wrong with one, you have others left.
7. Have a
The concept of retirement is undergoing a makeover these days, with more and more people wanting to do stuff on their own terms, while continuing to work. By following the above explained steps diligently, the only thing one needs to think is not when and how to retire, but how to rewire oneself post retirement.
AdvertisementAbout the author: Rajiv Raj is the director and co-founder ofwww.creditvidya.com.
Popular on BI
- Congress 'hand' stops BRS 'car' in Telangana, Revanth Reddy leads in Kamareddy seat as KCR trails
- Santa Claus Rally may hit markets early as BJP storms to power in Hindi Heartland
- Assembly results: BJP leading in 54 seats in Chhattisgarh
- BJP leading in 155 of 230 seats in Madhya Pradesh, Congress ahead in 72
- Rajasthan assembly polls: BJP surges ahead of Congress to take lead