Guide to achieving Financial Freedom: Know the basics to get started early for a comfortable retirement
Investors India|August 2022
Financial freedom is what most of us desire and aim for during our earning period of life.
Guide to achieving Financial Freedom: Know the basics to get started early for a comfortable retirement

In reality, this desire of becoming financially independent can be achieved only with a proper plan in place. Financial freedom may mean different things to different people but essentially it is a state that is achieved when the person does not have to work anymore to fetch the daily needs required for existence. When your wealth takes care of all your financial needs for a lifetime, you can consider yourself to be in a state of financial freedom!

It is that stage of life when the household expenses for a lifetime, expenses on self and family members, and costs related to medical needs, outings, and entertainment, can be met without having to depend on a job or profession. As a salaried or a business person, when you do not have to depend on a regular source of active income, you can consider yourself to have achieved a state of financial freedom. What it means is that you would have accumulated enough wealth to meet your living expenses for a lifetime without having to be employed or dependent on others.

The idea is to create enough assets that could provide a stream of income to let the goals be met at different life stages. Let’s see what it takes to achieve financial freedom for oneself.

Start with an estimate of the retirement corpus that you wish to create. Take into account the number of years left to retire, life expectancy, post-retirement expenses, growth rate during the accumulation phase, the growth rate on corpus during retirement, and other key factors that will determine how much you need for financial freedom. Remember, all of these will be assumptions and the actuals may hugely vary in practice. Therefore, keep realistic and conservative assumptions before you venture out to carve your road to financial freedom.

Denne historien er fra August 2022-utgaven av Investors India.

Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.

Denne historien er fra August 2022-utgaven av Investors India.

Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.

FLERE HISTORIER FRA INVESTORS INDIASe alt
Thematic Fund Or Sectoral Fund, Which Fund Suits You?
Investors India

Thematic Fund Or Sectoral Fund, Which Fund Suits You?

A thematic fund is a type of mutual fund that focuses on investing in companies based on specific themes or trends.

time-read
2 mins  |
October 2024
Be Kind To Your Kidneys
Investors India

Be Kind To Your Kidneys

The kidney is a vital organ in our body which is four inches long and two and a half inches in width.

time-read
5 mins  |
October 2024
Have You Included A Passive Fund In Your Portfolio Yet?
Investors India

Have You Included A Passive Fund In Your Portfolio Yet?

The assets under management (AUM) of passive funds recently crossed the Rs. 10 lakh mark. While a significant portion of this money comes from institutional investors, such as the Employees Provident Fund Organisation (EPFO), these funds are also gaining popularity among retail investors.

time-read
1 min  |
October 2024
Mutual Fund
Investors India

Mutual Fund

1. SEBI allows mutual funds to buy and sell credit default swaps (CDS)

time-read
4 mins  |
October 2024
Insurance News
Investors India

Insurance News

1. The finance minister has launched a new NPS scheme named NPS Vatsalya

time-read
1 min  |
October 2024
ASK THE EXPERT
Investors India

ASK THE EXPERT

Dear Sir, I attended your webinar on post-retirement financial planning. As advised by your good self, I invested in NPS after retirement.

time-read
3 mins  |
October 2024
Market Mystery: Some Important Investing Lessons from Fund Managers Themselves
Investors India

Market Mystery: Some Important Investing Lessons from Fund Managers Themselves

Mr. Mahesh Patil is the Chief Investment Officer (CIO) of Aditya Birla Sun Life AMC Limited. As the CIO Mahesh oversees INR 3 lakh crore of assets under management.

time-read
6 mins  |
October 2024
How to make a cautious entry into equity funds during a bull market
Investors India

How to make a cautious entry into equity funds during a bull market

The number of mutual fund folios has been rising, with flows via the systematic investment plan (SIP) route reaching new highs.

time-read
4 mins  |
October 2024
All that you need to know to kickstart your retirement planning process
Investors India

All that you need to know to kickstart your retirement planning process

We all enjoy planning for the future. It’s a good idea to plan ahead of time for anything, from the day’s activities to a vacation.

time-read
5 mins  |
October 2024
5 Steps To Achieve Your Financial Goals
Investors India

5 Steps To Achieve Your Financial Goals

From a beach house, a Jaguar, to traveling the world – there are many things in life that we want to accomplish.

time-read
3 mins  |
September 2024