Invest Early For Early Retirement

While uncertainty hangs over the age at which you will be able to quit working life, anticipating your retirement does not necessarily amount to utopia. We still have to give ourselves the means and adopt good practices, and this should be done as soon as possible.

It is difficult to know today at what age one can hope to quit “active” life. What if that question just wasn’t relevant anymore? This is what supporters of financial independence say: young workers who follow the FIRE movement (Financial Independence, Retire Early) from the United States.

According to them, it is possible to give oneself the means to retire well before the official age. Often from 40 years old, when the norm would be that one is on the contrary in full rise of career. The idea is appealing to say the least. What about its implementation?

Spend less, save more, and invest more

Aiming for financial independence means considering your life in two stages: a work and savings phase, followed by a phase devoted to “retirement” and/or any other project, during which passive income covers expenses. But behind this common aspiration, there are dozens of nuances, and individuals with sometimes very different goals.

No matter what the goals are, the key to early retirement is to invest early.

Nothing prevents you from seeking to strive for financial independence, or to build up capital to live well in retirement. How? ‘Or’ What? By adopting the main principles stated by us above: spend less, save more, and above all: invest better.

There are different types of investment instruments that can help fulfil your retirement goals, for example, you can choose investment in pension plans or a lifetime retirement investment scheme.

Making investment for early retirement is fundamental. Whether you start saving at age 20, 30, or 40 for retirement, or manage to set aside 20% or 70% of your income, only well-managed investments, like SIPs and retirement or pension plans, will get the most out of your efforts. Here are some tips on how to do it. (Read More: Defeat The Evil Age And Diversify Your Investment)

Don’t be afraid of the stock market

By comparing the performance of different types of investments, before tax, over the last 10 years, we notice that equities offer by far the most interesting returns.

For a long-term objective as ambitious as early retirement, investment in the stock market is therefore the most appropriate. On one condition: properly diversify your portfolio, in order to limit its volatility. You can also turn to stock advisory services.

Use ETFs

To properly diversify your investments, you don’t have to spend hours selecting thousands of companies yourself, in hundreds of different industries and countries. You just need to invest in funds, preferably index funds or ETFs.

ETFs replicate the composition of dozens of stock market indices. They deliver a performance in line with that of the market, and most often superior to that of traditional funds. They thus make it possible to obtain the most effective diversification, while reducing costs.

Secure your child’s future with child plans

The most common method that is available for helping your children financially is to invest in a child plan in their name. It is guaranteed that when your child will reach the age of maturity, he will be able to get a lot more than you invested. This type of investment opportunity is ideal for children. So, we suggest you to make use of it by contacting experts of RKFS.