Insights

How to retire at 40?

November 12, 2019 . Ranganayaki R

In your youth, there’s always an inner tussle between living at the moment and keeping an eye on the future. We get it, it’s as tough a tightrope to walk as any. The carefree kid residing in each one of us would love to live life king size, without a care in the world. No wonder then, that most of us end up splurging our salary sooner than saving it, leave alone investing it to multiply our wealth further!

Delve a bit deeper, and you’d realise that that’s exactly why you must plan your finances well. The need to live every moment (including the ones lying ahead of you) to the absolute best, is why we just cannot neglect financial planning earlier in life. 

If you’ve ever built early retirement castles in the air, you can, in fact, make it a reality! 

How to retire at 40:

Read that again. Seems blissful? Imagine yourself chilling at home when you are 40, not having to wake up every morning to rush to work, keep yourself stress-free for the rest of your life! 

Would you believe that you don’t need to let this be the elusive dream? As they say “Nothing works if you don’t”. Start investing earlier and enjoy the fruit of your hard work “multiplied” during your retirement days. 

Retire at 40

Here’s how you can let your money work for you post early retirement:

  • Plan sooner and invest early:

Having a post-retirement plan is a necessity for everyone. But the sooner you do this, the better. And the better you know, the sooner you can retire. Ask yourself what would you like to do in your 40s? Would you be buying your dream car/home, go on a world tour, or would love to simply chill at home? This will let you plan how much and how long you need to invest, and will also answer the main question, “How to retire at 40?”.

  • Step-up your investments:

Step-up your investments whenever you receive a hike or move up the career ladder. This will not only help you reach your goals faster but also help you adjust for inflation. Get to know more about Step-up SIPs here.

  • Leverage the power of compounding:

We all know the mantra, ‘SIP’ (Systematic Investment Plans). There is nothing to think twice about when we are focused on having “planned and regular” investments with better returns in the future. And when compounding is considered, SIPs are the best options. Also, the longer the term of SIP investment, higher would be the power of compounding.

So, make sure to start planning for your retirement kitty early. And of course, a person who starts at an early age can also afford to choose long-term, high-risk investments that tend to deliver higher returns in the long run.

Devise a customised early investment and retirement plan for yourself! Simply use our Retirement Plan and Pension Calculator 2019 or get in touch with one of our financial advisors today.

Happy investing!

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