The most important thing to remember when planning for your retirement is to consider the rate of inflation. This means your expected corpus for retirement should be calculated by adding up the inflation rate in the amount which is required by you (today’s value).
After you are clear with the estimated amount which is required by you at the time of retirement and deciding the age of retirement, then the planning process will start.
The retirement budget is calculated by keeping in mind the current lifestyle and the kind of lifestyle you want in retirement. To achieve a certain amount of money in a certain time period, systematic planning is required. This can be achieved with diversifying your investments.
There are many investment options available for retirement planning. The options are suggested based on two situations – first, if a lump sum amount is required at the time of retirement and second, if regular monthly income is required. There are monthly income plans, pension plans, senior citizens saving schemes, tax-free bonds, national pension scheme and more.
One needs to plan smartly to retire early with the required corpus.
To retire early, you need to plan for it early.