Just like building a muscular body requires a hard-work, discipline, and dedication similarity if you want o to become a millionaire you will have to be hardworking and disciplined person.
According to tax and investment experts, if someone wants to retire early, he or she will have to start investing as early. Jitendra Solanki, Registered Tax and Investment Specialist with SEBI say, “Building a retirement corpus of Rs 10 crore by the age of 50 requires financial discipline and investment planning at an early stage of one’s career.
If the person wants to retire by the age of 50 then he has to start investing in the retirement fund by the age of 25. At this age, one would be earning, but the chances of having a huge amount for investment are less. Mutual fund SIP is the best option. You have to invest for a long time to fill the ocean drop by drop.”
A mutual fund SIP (systematic investment plan) is perfectly apt for those who are looking to invest a small amount every month and that too for the long term. Retirement age in India is mostly thought-about 60 and folks make retirement-oriented financial savings protecting this age quantity in thoughts.
But why should you retire at the age of 60 only? If you think about retiring early, you should save sufficient money for the rest of your life. A lot of experts believe that if someone plans to retire early, he or she will have to start investing at an age of 25 years, even if it is a small amount.
On the risk to build up ₹10 crores by age of fifty; SEBI registered tax and funding skilled Jitendra Solanki mentioned, “To create ₹10 core retirement corpus by age of fifty requires monetary self-discipline and funding planning on the early section of 1’s profession is should.
If an individual desires to retire by 50 years of age, then she or he should begin investing in retirement funds by 25 years of age. At this age, one could have income, however, the possibilities of having a big lump sum quantity for funding are few. So, mutual fund SIP could be the most suitable choice for such investors because it helps the ocean from an icing tip.”
Meanwhile, Kartik Jhaveri, Direct – Wealth Management at Transcend Consultants said, “Only SIP might not be able to meet such an ambitious investment goal as mutual fund SIP yields 12-15 percent per annum in long-term. One should make some pun in its investment like annual step-up by 10 percent. A person’s income is expected to grow annually and hence one should think of increasing one’s investments too. So, a 10 percent annual step-up in monthly SIP will help the investor reach? 10 crore target.”
So, it’s advisable for the investor to keep the annual step-up rate as high as it’s possible for him or her as it curtails monthly investments to a larger extent.