Looking for early retirement? This asset can help you achieve your goal!

April 25, 2022 12:15 AM AEST | By Toshiva Jain

Looking for early retirement? This asset can help you achieve your goal! — Image source: © Johnkwan | Megapixl.com

Highlights

Investment in shares is one of the most optimum ways to fetch good results for an early retirement plan.

Shares are one of the best and most lucrative investment options for youngsters because one doesn’t need hefty capital investment to begin their journey in the share market.

Rules for companies listed on ASX or NYSE are stringent; thus, the risk factor is minimised for individual investors, making shares a safer option for the long term.

Times are changing! The boomers used to have different opinions about retirement from what the millennials have. However, the basic requirements of a successful retirement plan remain the same. One needs financial, social, and physical security in old age.

People throughout their careers save money in different forms for their retirement plans. However, what if one wants an early retirement? - In that case, one may need a different strategy altogether. Merely depending upon the government schemes or the monthly savings of provident funds won’t make the case strong.

Budget Planning: 4 Phases Of Retirement

MUST-READ: How are bond prices related to the stock market?

Thus, if someone is looking for early retirement, they would need an efficient plan to collate an optimum amount by the time they wish to retire and take a backseat in their professional lives.

There are several options available for investments and increasing wealth; however, there is one asset that experts suggest is the ultimate investment option to plan for early retirement. So, what is it? - Let’s have a look.

GOOD SECTION: Three timeless lessons for investors from billionaire Ray Dalio

Investment in shares

Yes, you read it correctly. Most people who are into investing do invest in shares; everybody knows that. However, when you plan to have an early retirement, investing in shares becomes more crucial.

Investment in shares benefits for retirement

Source: © Wutzkoh | Megapixl.com

One would need to start investing at an early stage if aspiring for early retirement. Shares are one of the best and most lucrative investment options for youngsters because one doesn’t need hefty capital investment to begin their journey in the share market.
Rules for companies listed on ASX or NYSE are stringent; thus, the risk factor is minimised for individual investors, making shares a safer option for the long term.
Since no considerable brokerage or transaction cost is involved, so, one is not wasting any money while investing in stocks.
Look at the long-term fundamental value of the stocks; one shouldn’t focus on short term gain or loss when planning for retirement. Thus, act wisely while choosing the company to invest in and play the card for longevity.
The next thing is to remain vigilant while investing in stocks. One shouldn’t choose a company because it's a hot stock; instead, study its fundamentals well and proceed. Additionally, the “tops and bottoms” strategy may not always work. Thus, don’t get sentimental and invest money wisely.

ALSO READ: Three best-selling books every investor should read

Additionally, the world economy is going through significant inflation; thus, in times like these investing in stocks is considered a wiser choice because it helps one outrun the rate of inflation.

All said and done, it is never to be forgotten that the equity market has pros and cons. Where there is profit, there is risk involved as well. Thus, do not gamble; carry out the probability and devise an optimum plan for early retirement.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.