Why do Entrepreneurs Opt For An Early Retirement?
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While retiring early sounds appealing, entrepreneurs need to be careful while strategizing. A proper plan should be the next step. Retirement offers entrepreneurs with a chance to relax, travel, and spend more time with their families. Others can be anxious as to how someone else is going to run the business which they have actually found.
Recently, the retirement of Alibaba founder Jack Ma created a buzz across the industry. Being China’s richest man, Ma announced his retirement from the company at the age of 54. Promising to continue as the company’s Director, Ma announced the company’s Chief Executive Officer Daniel Zhang as his successor.
To successfully retire early, it’s necessary to adopt a contrary mindset, producing fascinated lifestyle and retirement planning insights.
Be financially independent
In order to retire early, you need to have a huge nest egg and an income stream that matches your working salary. According to a report, the average employee surveyed required a nest egg 12 times their career pay to retire.
Young retirees claim that the magic number is not income, it’s actually the saving rates in the form of a percentage of their take-home pay.
Spend less, being just as happy
Retirees don’t consider spending less money as a sacrifice at all. In fact, with their transforming mindset, they claim it to be perfectly content (feel proud) of minimizing their consumptions, in spite of enjoying all the necessities.
Money of Budgestsaresexy.com shares, “I’m just as happy drinking beer at home as I am at a bar. I’m just as happy eating food as I am hitting a new restaurant. I do more of the free/cheap stuff and continue having a sweet quality of life.”
Cash flowing assets
An alternative investment is the smartest way for retirees to lead a successful and happy life. It provides income support at early stages of your retirement, which could be molded later. Real-estate investment and income-producing websites are few alternative investments, assuring a constant flow of cash as income.
This article was originally published on Franchise India by Shahram Warsi.