Investing for Retirement
Many people in their thirties think that What is the hurry of investing? There is till a long way to go for the retirement. But well, this is Myth. The truth is that, ideally you should start investing for retirement from the first day of your active earning life means probably from your twenties. Yes, ideally you should start investing for retirement from the day you get your first job.
Start Investing Early is the key of peaceful retirement. This is because the earlier you start, the compound interest will work more in favour of your investments to grow them large over the time. If someone has invested for 15 years for his retirement and the some other persons has invested for 20 years for his retirement than the second person will have much more retirement corpus than the first person.
The only 5 years of difference in starting investment can make a huge difference in the wealth later on. And that’s why when people ask me that, What is your advise about Retirement Planning? I say them that – Start Early.
Because this is the 90% advise that anyone needs to become financially Independent on retirement. And those who have started investing very early in their life have accumulated so much corpus in their early life that, they managed to retire in their forties and early fifties.
My another concern about Investing for retirement is that, most of the people think that investing for retirement means invest in the 401(k) plan and than wait and watch until your retirement to see weather the money has grown in your 401(k) plan or not? But well, believe me, The 401(k) Plan and the Social Security Plans are not sufficient enough to become financially independent after your retirement.
You will have to invest somewhere else rather than these plans for a financially peaceful retirement say for example in your own Business, Mutual Funds, Dividend Stocks, Rental properties…etc.. Investing only in 401(k) plan and Social Security scheme doesn’t guarantee any kind of financial peace after retirement.
So keep in mind these few key concerns about investing for retirement and plan your retirement accordingly.