How to retire at early 50's ?

Let's assume, you are at the age between 21 to 25 and started earning.

If you invest 20,000 every month for the period of 20 years at 12% CAGR , at 21st year onwards you will start withdrawing Rs 100,000 every month as systematic withdrawal plan.

Your total invested amount should be in between 1cr to 2 cr. According to me, if you are living in a non metro cities, this is enough for the remaining period of your life.

So why are you waiting? let's start invest.

Wait , Where can I invest to get 12% CAGR ?

Let's take our Nifty index return for last 3 decades is as an average of 12% .

If you are an defensive investor you can start investing in Index funds.

My advise is if you are at the early part of the life ( means in early 20's) you can take risk and invest in equity instead of Index. Offcourse, all your investments are based on your risk appetite.

If you are at the later period of 45 to 55, then you must restrict to fixed returns instead of equity.

Whether I need to invest all my money in stock market?

Absolutely not.

Only mandra to keep our investments safe from all the situations is "Stay Diversified".

This is the lesson that we learn from COVID crash.

How can I diversify my investment?

Well, there are many asset classes to diversify like Bonds, Gold, Fixed deposit, Crypto, US and Indian share market etc.

Nothing is permanent in this world including your job.

Now we can see many Fintech companies, who welcomed us in 2021 are now sending us to home in 2022, due to various reasons in the economy.

So having a passive income is a must one nowdays.

If you are planning for your retirement in late 50's, the you must take 

1) Life insurance 

2) Health insurance for you and your family 

3) Emergency fund either in savings account or in FD ( Six month salary should be kept aside as emergency fund )

4) Start your passive income journey ( Blogging, content creation, free lancing or any business etc.)

5) Invest and Stay Diversified

6) Don't have many Credit cards, which made you to spend more.

Thank you for reading this.

If I missed anything please comment, so that me and others will learn.