We all dream of leaving a full-time job behind at the age of 55 or even sooner.
The vexed question is: Is it possible to clock out early?
Since our birth, we have been advised the age-old method of saving more and spending less. This route towards wealth creation is also considered as an evergreen method to manage our finances in a methodical way. However, if you think that this traditional habit of piling up huge amounts of cash reserves will help you to retire early, it’s time to do the maths again.
Here’s what you need to know:
- No one has become a multi-millionaire by adopting this approach in their routine. And who else can tell you better than the people who have travelled the road to affluence? The financial mentors Warren Buffett or even Rakesh Jhunjhunwala did not amass humongous wealth by walking on this path.
- Since we have spilled the beans, there’s one more truth. No one will even admit that ‘Saving more, Spending less’ is an obsolete method. The times, they are a changin’.
The millennials lifestyle is starkly different when compared to their forefathers. Talk about solo-travels, designer labels, exotic trips, dine-outs at plush restaurants, proclivity to own the latest gadget amongst many other – we are not even close to living a life as basic as our parents did.
With the current lifestyle, millennials are facing a tough time to plan for a smooth retirement.
Now let’s say you invested your savings of INR 3 Lacs in the traditional savings products such as PPFs and FDs for 10 years. The PPF will turn into INR 6.24 lacs and FD would fetch INR 5.86 lacs at the maturity.
Now, are these returns sufficient to retire smoothly?
Definitely no. Even after years of tussle with our spending, we are not even close to the finish line.
So is retiring early an unrealistic goal? No, it is very much doable. The game remains the same, although the rules have changed. All it requires is a change in the mindset, basic education, discipline and street-smart ways to make an action plan.
But the question which we have for you is: Are you willing to fast-track your early retirement and explore the best method of retiring comfortably?
If we observe Warren Buffett and Rakesh Jhunjhunwala, they vouch on the magical powers of value-investing with a perspective of holding that stock almost forever unless the fundamentals of the company alter. These stocks can grow as much as 500% or even 1000% in a span of few years. No, we are not kidding!
Need an example? Here, they are:
- If one would have invested 1 lac in Minda at the start of 2013, the accumulated return till now would be more than INR 10 lacs. This is an appreciation of more than 900% in 5 years.
- Similarly, if INR 1 lac were invested in Havells in January 2005, it would have turned into 82.5 lacs today, a growth of whopping 8150% in 13 years.
Here are 5 ways to retire early:
- Before you get started, calculate the amount you need to have in your locker to retire comfortably.
- Get started early and be willing to live frugally to save enough for unforeseen situations in life.
- Adopt a modern and well-researched way of investing your money. Make sure that you pick products with a vision of staying invested for a long-term.
- Ensure your emotions are under control. This doesn’t mean you have to stick to your investments even when there is a change in fundamentals.
- Review the products on a periodic basis.
Our secret ingredient to retiring early
Our wealth creation products are a departure from the traditional method while embracing the modern investing way for a modern lifestyle. We scout for the companies which are gems in making. We believe that even though rigorous research and analysis help in identifying companies with strong fundamentals, the key to discovering such multi-bagger stocks is to look at the data in a manner which others can’t. We have our eyes set on stocks with significant margin-of-safety having not just growth potential but ability to give a multi-bagger return of 5 times, 10 times and even more in a span of few years.
Our endeavour is to generate multifold returns for our clients by following a simple investment methodology: Stocks with sound fundamentals, agile and credible management, and healthy balance sheet along with the benefit of the power of compounding leads to real wealth.
By following this path of systematic investing, you can retire comfortably even at the age of 40!