Planning for retirement has always been the most anxious thing in life and more so with the salaried population.
Ready to Retire;
- Have all the Basic Goals been met with or have you accumulated enough corpus to meet the expenses towards the Basic Goals?
- Is your Passive Income greater than your Active expense?
If the answer to both the questions is YES, then you are “READY to Retire”.
Now let me explain to you in detail what the above questions mean..
Basic Goals
- Goals whose corpus or the time to goal is not in your control, then those goals are called Basic Goals.
- Children’s Education / Marriage Expenses / Owning a house for self-occupation are examples of Basic Goals.
Passive Income and Active Expense
- Passive Income is the Income you generate independent of your monthly salary or income from active business/professional involvement;
- Interest income/dividends
- Rental income
- Royalty income
- Active Expense
- Your lifestyle Expense
Now having known each of the conceptual definitions, answer yourself if you are “Ready to Retire”
If your answer is “No”, seek advice from the financial planner and move towards the status of fulfilling your Basic Goals and generating Passive income greater than your Active Expense.
Happy Investing…
