"How old do you want to retire?" This is a question that many of the retirement surveys must ask. Most of the answers will be concentrated between the ages of 55 and 65. Only a minority will choose to be under 50. I think this is because people who fill in the questionnaire know that in today's work environment, High salaries and dreams of retiring before the age of 55 are simply impossible tasks.
At present, the statutory retirement age in Taiwan is 65 (the age of the old-age insurance annuity plan). However, in many people's minds, they all hope to work hard and start enjoying wonderful time five years, 10 years or even 15 years in advance. However, the dream is beautiful, but the reality is always cruel. If you can retire early smoothly, the key is whether your retirement pension is enough to decide.
How much to prepare for retirement pension is enough? In my opinion, the crux of the matter lies not in the "absolute figure", that is, whether it is not enough to prepare $ 5 million, $ 10 million or $ 20 million. Instead, will it be able to obtain a steady stream of "passive income" after retirement? However, the passive income can not have a mouth to talk about it, and it must be planned well in advance.
Having passive income is the key to early retirement
Why is "early retirement" so appealing? If you can retire in your 40s, few will want to retire again after 60, because later retirement will start to show many health problems. For example, if your knees degenerate, you have to dream about starting to lie back when you were young , Domestic and foreign travel, the result is therefore unable to move; or more serious, chronic upper body, go out to carry kits ... ... this retirement believe we are not happy.
The older we are, the higher our chances of using savings to solve medical problems. We often say that "when we are young we use health for wealth and wealth for wealth after we are old" means this. So it is really a great thing to be able to retire early and take care of your own life while you are still strong. However, what should be done now to realize the desire to retire early?
"Early bird bugs eat." Many people march toward financial freedom. They only did two things right: They started to save money earlier than others and began to invest more in wealth management. As a result, some people get a large pension fund sufficient to support their retirement life. Some rely on one or more passive incomes so that when they retire, they still receive monthly fixed-term "retirement salaries" .
First of all, the sooner you start saving, the more you save money over time. With the benefit of compounding, saving is enough to support the decisions we can make next.
First save and then start looking for passive income investment opportunities
With savings, the next step is to invest correctly. With enough savings, including an emergency backlog, you can begin to understand how to make more money by investing. Such as investing in stocks, real estate, funds and annuities, and some other investment options that can be invested in cash.
After investing, start paying attention to creating "passive income." Passive income, also known as "non-wage income," refers to the amount of money you can earn without having to spend time each day. The key to whether you can retire early is whether you can get a steady stream of passive income. To give the simplest example, now that the "annual insurance" launched by insurance companies can provide retirees a stable monthly pension, the annual payment of annuity insurance can be paid annually from a young age. It can be a full payment of premiums once in a few years or a year prior to retirement and then receive a fixed monthly payment starting on the scheduled date.
Including the bond funds monthly interest income, long-term holdings of stocks or ETF and receive an annual dividend income, rent received housing, publishing books published each year to receive royalties ... These are "passive income." The sooner you start investing in such passive income, the higher your chances of early retirement. Therefore, before retirement, we must constantly look for such opportunities so that "money" can work hard for us and earn more money. This is exactly one way the rich have become richer.
So, if you want to retire early, start now!