Axis Money IQ Knowledge Nugget - 181

Retiring Early: Dos and Don'ts

Are you tired of the 9-5 grind and ready to trade in your commute for a hammock and a good book? Retiring early might be the answer you're looking for. But, before you say "Sayonara, office!" there are a few dos and don'ts you should keep in mind:

Dos:

??? ?Create a budget: Make sure you have a solid financial plan in place. Have a clear understanding of your current expenses and income, and use it to plan and budget for retirement. You don't want to be sipping your favorite drink on a tropical island only to realize you've run out of money.

??? ?Consider healthcare expenses: Healthcare costs can be a significant expense in retirement. While budgeting for retirement, consider options such as health insurance, family health insurance, critical illness insurance, etc, and ensure that you are well protected in the face of unforeseen incidents.?

??? ?Invest wisely: Investing in a mix of stocks, bonds, and real estate can help grow your savings and provide a steady stream of income during retirement.

Don'ts:

??? ?Don't overspend: Not having a sustainable lifestyle may put a strain on your retirement funds. Make sure that you don’t overspend, cut back on non-essential spending, and live within your means.

??? ?Don't withdraw from your retirement accounts early: You'll not only miss out on potential growth but you could also be hit with taxes and in some cases, penalties.

??? ?Don’t waste your time: If you're not prepared for the free time that comes with retirement, you may find yourself bored and restless. You can travel, pursue your hobbies, build additional streams of income, etc. Chart out a plan to ensure that you utilise your time wisely in whichever way you deem fulfilling.

Retiring early is a dream that can become a reality, but it takes smart planning and preparation with respect to your investments, taxes, and other expenses. Views and opinions contained herein are for information purposes only and should not be construed as investment advice/ recommendation to any party or solicitation to buy, sell, or hold any security or to adopt any investment strategy. It does not warrant the completeness or accuracy of the information and disclaims all liabilities, losses, and damages arising out of the use of this information. The recipient should exercise due caution and/ or seek professional advice before making any decision or entering into any financial obligation based on information, statement or opinion which is expressed herein.

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