Retirement is always something that is kind of fascinating for me. I just have four years of experience in software industry and I think it is kind of enough. It looks dreadful at times. I just want to work for someone and just do something for me which am interested in. I don’t know what keeps me interested and that is a different story altogether. Retirement from the industry means I have made myself comfortable and living a lifestyle that I dreamt of and hope to continue the same till I die.
If I need to retire then how much cash should be in my hands? I know it is very early to even think about retirement but that is how I see things. I need to plan early so that when I do retire, I retire the way I wanted it and if things go as my plan I might even retire early. Retiring means not doing something you love but something that you don’t love to do and do it just for the sake of it and a means to make money. I have seen many people argue with me for hours telling me that they don’t work for money, I don’t agree with them.
Assuming that I make 1 lakh per annum now, then after 5 years the same amount need not be sufficient for me. Assuming that inflation is around 5% then the value of 1Lakh reduces to 75-80k. So when I think of how much money do I need, I have to consider my lifestyle, inflation, emergency situation and gifting others. Why I put gifting as one of the needs is, I see that happen every now and then. When you retire you will have your own family and also your son/daughter will have their own family. You need to be good to them as well, don’t you?
Technology keeps changing at a faster rate than you even take notice of it. So if you are tech-geek who is interested in the gadgets and keep changing them very frequently then you got to ensure that you have enough cash stashed for it as you are going to make some not needed expenses. Why I call buying gadgets as not needed is because it is not necessary but you just fancy having them and have them.
You got to control your spending else it will be a problem for you. So when you are days are golden make sure it is golden rather than making it just another day where in you are trying hard to make the ends meet. Think of the things that you want and how you want to lead your lifestyle. It is of upmost importance as to how your lifestyle is. I am sure that is how you want the rest of your life time to be. If you have enough money today then make sure you have more than enough when you retire.
If you ask me what is a good way to retire then I would suggest investing rather than saving money. Investing will ensure your money grows and yields better results and it beats the inflation. That is a good way to hold on to your money rather than keeping in the bank account. What to invest in is a good question again? I would suggest the least risky investment options such as bonds, CDs and similar investments where in you don’t take any risk at all. Also one more suggestion is buying gold, silver, platinum and other valuable metals.