Are you looking to Retire at 45? 4 Investment Tips for Early Retirement

Many of us want to retire early. That early retirement age might be 35, 40, or 50, but the idea is to retire sometime before the age of 65 and start enjoying life before age and infirmity catch up with you. Here below are 4 Investments tips to follow:

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1. Create a Plan

Armed with the willingness to commit and realistic expectations, it’s time to create a plan. Your early retirement plan should help you save enough money each month to reach your retirement goals. This means that you have to consider cutting your expenses, and changing what you do with your money, in order to meet the requirements of your plan.

2. Collect your savings

Collect your savings. Even if you’re employed at a great company, think of yourself as being self-employed when it comes to investing for your own retirement, you’re in charge, so take the reins and put together a game plan for how you’ll reach your retirement goal.

3. Keep away from withdrawing your EPF/ ETF

Though it can be tempting to tap into your EPF/ETF savings, it’s vital to leave the money you’ve allocated for retirement untouched. As it is known, withdrawing money from your retirement funds will cost you money in the long term in lost principal and interest.
4. Focusing on Tax Efficient Investments
To maximize your early retirement, you’ll want to invest in tax-advantaged accounts and investments that don’t have early withdrawal penalties. Here are a few to consider:
4.1. Pension plans
Although defined benefit pension plans are rare, some employers still offer pensions that begin paying out immediately when you separate from service or that allow you to begin receiving payments or else you can plan ahead by settling into a retirement plan such as HNB Assurance ‘my pension’ for a guaranteed monthly income for a happy retirement.

4.2 Stocks
Holding equities long-term is not only tax-efficient, but possibly essential to position your portfolio for growth. Taxes on long-term capital gains and dividends are currently capped at 15%, and you only have to pay this tax in the event that you receive dividends or sell shares.
4.3 Real Estate
Real estate investors have known for a long time about the tax benefits and income potential of investment real estate.
These Investment tips will definitely give you an insight on how you should plan for your early retirement, so get a head start to retiring early right away!

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References
Investopedia (2015) Retreived from http://www.investopedia.com/articles/professionals/022015/6-essential-retirement-planning-tips.asp
http://moneyning.com/retirement/want-to-retire-early-follow-these-5-steps/

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Disclaimer: The views shared in this blog are based on the macro economic conditions & industry status quo as per the time of publishing.