The best way to get rich and retire early
The Best Way to Build Wealth and Retire Early
What does it mean to be "rich"? To us, it’s simple: having enough so that you don't have to worry about money and are free to use your time as you wish. If you want to retire by age 50, you have to be honest: "working a 9-to-5" and relying on default super is rarely going to get you there.
The Early Retirement "Number"
To live comfortably in retirement today, many estimates suggest you need at least $1 million in investable assets (excluding your home). But if you are 25 and want to retire in 25 years, inflation means you'll actually need the equivalent of $1.85 million. Throw in a debt-free home, and you're looking at a target of $4M - $5M.
Which Path is Best?
Shares: Shares are the best engine for compounding over 40 years, but for a 20-year "early retirement" sprint, they can be slow. To beat the market, you need skill, a high savings rate, and the discipline to ignore volatility.
Property: Residential property has been the "Australian Dream," but it faces headwinds. With high debt and low rental yields, property is becoming a less reliable path for rapid wealth creation than it was for the previous generation.
Business Ownership: Historically, this is the most effective way to retire early. Every one of the world's (and Australia's) ten richest people built their wealth through equity in a business. It involves the highest risk, but it’s the only path with truly outsized rewards.
The Mindset of the Rich
Beyond the assets, early retirement requires a specific mindset:
Relentless Focus: You have to be obsessed with your goal.
Risk Tolerance: You must be willing to make bold moves that others won't.
Before you embark on the journey to retire early, you need to look in the mirror and decide if you have the stamina for the climb. We help you build the map, but you have to walk the path.
Source: https://www.morningstar.com.au/stocks/best-way-get-rich-retire-early
For further information, or to book an appointment to ensure your business/trust affairs are in order, give Humble Goode Financial a call on 08 7477 8252 or email planning@hgfp.com.au
General Advice Warning:The information on this website is intended to be general in nature and is not personal financial product advice. It does not take into account your objectives, financial situation or needs. Before acting on any information, you should consider the appropriateness of the information provided and the nature of the relevant financial product having regard to your objectives, financial situation and needs. In particular, you should seek independent financial advice and read the relevant product disclosure statement (PDS) or other offer document prior to making an investment decision in relation to a financial product.