Make Money Work For You

In my earlier post on How to Retire Early in Five Steps, I briefly touched upon asset allocation in step #3. In this post, I go into a bit more detail into how one should go about asset allocation for early retirement. Before understanding asset allocation, you need to understand asset classes. If you have not read my post on asset classes, head on over to that post.   Disclaimer: The asset allocations discussed here are only a suggestion, it may or may not work for you because your needs and requirements may be different from mine. Please work with your … Continue reading “Make Money Work For You”

Let’s Understand Asset Classes

Did you know that if you only invested all your money in stocks you would get incredible returns over the long term? But what if you cannot stomach the risk where your investment could erode by 70% within a few months? Would you be able to sleep soundly if you found that your Rs. 50 lakhs investment became Rs. 15 lakhs? If you don’t like the wild roller coaster ride then you might want to diversify your investments into different investment baskets of varying risks. Generally risk is correlated with returns, so lower risk usually means lower returns too. To … Continue reading “Let’s Understand Asset Classes”

Should You Retire Early?

Early retirement is not for every one, and it is not like everyone need to retire early. Don’t blindly follow the bandwagon and join the F.I.R.E (Financial Independence Retire Early) cult. You subconsciously know who you are, and whether early retirement makes sense for you. Here are some reasons why you may not want to retire early.   You don’t know what you will do with all the free time Just imagine, once you have achieved the goal of early retirement, and if you sit down to think “what’s next?”, then boy are you in trouble. You should already have … Continue reading “Should You Retire Early?”

How Long Will My Money Last?

How long will your money last? The oft given cliched answer is — it depends. It is true if you want someone to answer for you. But if you put some effort, you will be able to answer the question yourself. The only problem is that you should be able to make some good estimates of your expenses, inflation and investment return long into the future.   This is a continuation of my earlier post — How Much Do you Need to Retire. If you haven’t read it, I urge you to head over there first. So by now you … Continue reading “How Long Will My Money Last?”