How to Open New Pension Scheme account with ICICI?

How to Open New Pension Sscheme (NPS) Account with ICICI Direct?

As all of you know that the New Pension Scheme (NPS) was launched in India in the year 2009 and up to now, it has attracted only 30,000 customers from all over the India. NPS has proved total disaster.

However, recently, PFRDA plans another push for a “Struggling’ NPS. It has taken several measures to boost the sales of New Pension System. One such measure is, tied up with ICICI Securities. Thus, now onwards you can open NPS account with ICICIDirect.com online.

And ICICI bank will get Rs.40 per every new account opened via ICICIDirect.com

Here are the key features of “How to pension Scheme account with ICICI?”

All you have to do is, logon to ICICIDirect.com with your login id and password and you will see the NPS option.

Once you will click the NPS option, you will have the subscribe NPS option from which you can subscribe it.

Let me tell you few things about NPS here.

- You can open an online NPS Tier 1 account by logging onto your ICICIdirect.com trading / investment account and visiting the “Subscribe NPS” link on the NPS page. Right now you can not open Tier – 2 types of accounts with ICICIDirect.com

- You can start a SIP in NPS through ICICIdirect.com

- Minimum annual contribution to NPS (Tier 1) is Rs.6000 per annum and can be started with as low as Rs.500 per month.

- Low fund management charges of less that 0.01%

- Withdrawal on maturity at  the age of 60 years post which one can withdraw 60% of the corpus as lumpsum or in trenches of minimum of 10% each and compulsorily buy annuities of the remaining 40%

- However, for special requirements a one time withdrawal or liquidity of 20% is allowed before maturity.

All About New Pension System (NPS)

All About New Pension System/Scheme (NPS)

The New Pension Scheme also known as NPS is effective from 1st April 2009.

Under this scheme, any Indian citizen can open the account with the government of India to save for his/her retirement. Well, let me tell you that this scheme is not only for government employees but this scheme is also for the Non-Government employees who work in the private sector companies.

What is the Purpose of NPS?

Let us understand this in layman’s language. Well, purpose of anyone in this world working as an employee is the peaceful retirement. I mean people work hard during their active life so that they can save enough on which they can live after their retirement.

The retirement age in India is 60 years (In very special cases it is 65) but because of the advancing medical facilities, the life expectancy has been increased. Previously people used to live up to the age of 70 years only but now because of the advanced medical services, people live well above 80 years.

And that’s why now the post-retirement life is increased.

Now, the government employees get the life time pension. Well, but what about the non-government employees who work in private sector? Well, they will have to build their retirement corpus by their own and that’s why NPS is the pension scheme for those people who want to build their retirement corpus by their own so that they can live happily on this corpus after their retirement.

Highlights of NPS -

The NPS would be administered by the Pension Fund Regulatory Development Authority (PFRDA).

A Central Recordkeeping Agency (CRA) would maintain all the records (like account balances) related to the NPS. National Security Depository Limited (NSDL) has been selected as the nationwide CRA for the New Pension System.

There would be six Pension Fund Managers (PFMs). The PFM would be responsible for investing your funds and generating returns from them.

There are also entities called Points of Presence (PoPs). The PoP would be responsible for the sales and marketing of the NPS. (These are similar to the distributors for mutual funds).

List of Pension Fund Managers (PFMs)

1. ICICI Prudential Life Insurance Company Limited
2. IDFC Asset Management Asset Management Company Limited
3. Kotak Mahindra Asset Management Company Limited
4. Reliance Capital Asset Management Company Limited
5. SBI Pension Funds Limited
6. UTI Retirement Solutions Limited

List of Points of Presence (PoP) entities

1. Allahabad Bank
2. Axis Bank Ltd.
3. Bajaj Allianz General Insurance Co Ltd.
4. Central Bank of India (CBI)
5. Citibank N.A.
6. Computer Age Management Services Private Ltd.
7. ICICI Bank Ltd.
8. IDBI Bank Ltd.
9. IL&FS Securities Services Ltd.
10. Kotak Mahindra Bank Ltd.
11. Life Insurance Corporation of India (LIC)
12. Oriental Bank of Commerce (OBC)
13. Reliance Capital Ltd.
14. State Bank of Bikaner & Jaipur (SBBJ)
15. State Bank of Hyderabad
16. State Bank of India (SBI)
17. State Bank of Indore
18. State Bank of Mysore
19. State Bank of Patiala
20. State Bank of Travancore
21. The South Indian Bank Ltd.
22. Union Bank of India (UBI)
23. UTI Asset Management Company Ltd.

Permanent Retirement Account Number (PRAN)

Each investor in the NPS would be allotted a Permanent Retirement Account Number (PRAN). This would be a unique identification number that would be used to identify an investor irrespective of his PFM.

The PRAN would be issued to investors by the RCA.

Types of Funds -

According to your risk appetite, you can chose to invest in Growth and Safe funds. Obviously, the Growth funds will be equity driven and the safe funds will be debt oriented.

Equity Investing Strategy -

Let me tell you that what would be the Investing strategy of NPS for Equity?

The investment would be passive – there wouldn’t be any active buying and selling of stocks based on the fund manager’s analysis. Instead, funds would be invested only in the 50 stocks comprising the NSE’s NIFTY stock index.

Debt Investing Strategy -

If you chose a debt fund than it will invest all of your money in Government securities which is 100% Safe and Secure.

Switching Facility is Available -

You can also choose to transfer your money between various funds and fund managers.

Charges associated with NPS -

The biggest benefit of NPS compared to any other investment plan or scheme is the minimal cost involved. The very low fee is the biggest advantage of the NPS.

01) Fund management charge

Compared to the high management fee of most other investment options, the management fee for NPS is peanuts – it is less than0.01% per annum! Compare this with about 1.75% to 2.25% per year charged by equity mutual funds.

02) Record keeping fee

The annual record keeping fee for NPS would be just Rs. 280. This is comparable to the annual charges levied by depository participants (DPs).

03) Transaction fee

Each transaction would cost Rs. 6. Thus, if you make a monthly deposit of say Rs. 2,000, you would be paying Rs. 6 as the transaction fee and the remaining Rs. 1,994 would be invested on your behalf.

Compare this with the 2.25% entry load charged by most mutual funds In this case, you would pay Rs. 45 as the entry load, and only Rs. 1955 would be invested on your behalf.

Withdrawal Facility -

Premature Withdrawal:

Well, this is a pure retirement plan so simply forget about the withdrawals. You won’t be allowed to withdraw any money before the age of 60 years except some special circumstances such as buying your own home or the marriage of your children.

Withdrawal on Maturity:

You would not be able to withdraw the full accumulated amount as a lump sum.

You would be allowed to take out 60% of the corpus as a lump sum, and would need to invest the remaining 40% in an annuity.

Annuity is an instrument that would provide a fixed monthly amount to you in return of the fixed lump-sum investment by you (40% of your accumulated corpus in this case). Thus, it would act as your pension after your retirement.

Employees Provident Funds to invest 15% in Equity

Employees Provident Fund (EPF) to invest 15% in Equity

EPF is the one of the most commonly used scheme by the employees of India to save for their retirement regularly.

Recently, the Finance ministry has asked EPFO to invest up to 15% of EPF in Equity. But well, in exchange of that, the EPF commissioner asked for the government guarantee that the stock price won’t go down.

"Our Board of Trustees felt investments in the capital market are unsafe and do not serve well for someone like us who want very stable returns," Central Provident Fund commissioner, Samirendra Chatterjee, told reporters on the sidelines of a function organised by AK Capital Services in Mumbai.
"If they want us to invest, please give us a guarantee for the same, we will invest," he added.

Giving such kind of guarantees is not at all possible in the capital markets. However, the purpose of the finance minister is clear. By investing 15% corpus of EPF in the equity, it will help to boost the returns of the employees saved money in the long run as equity provides the highest returns in the long run.

The EPFO and the company-run PF trusts are currently allowed to invest only in more secure investments like bonds and Government securities which deliver a stable return.

Unfortunately, the inflation in India is right now so high (8-14%) that the fixed income instruments are not that much secure. They will give you just the psychological feeling that the value of the fund will go high and high.

But well, the inflation will erode the purchasing power of your money put in the EPF over the time. Just think that your EPF generates 8% annual return from you while the inflation is 12%. In that case, your purchasing power is reducing by 4% every year even though you are gaining 8% every year ‘On Paper’.

I personally feel that for such a long time horizon investments, Equity exposure is a MUST.

Pension Plans are Worthless in the Modern Economy

Pension Plans are Worthless in the Modern Economy

Pension Plans are becoming worthless day by day. This is because the world economy is changing in such a bad manner right now that within few years the pension plans will be worthless.

Very soon people living on the Pension Plans won’t able to live on their pension income alone. Thus in the near future, the people who are planning to live on the pension income will be in financial trouble.

This is because the US Government and many central banks from all around the world are right now printing literally billions and trillions of dollars out of thin air and this newly printed money is diluting the purchasing power of the existing money.

Right now this money is sitting in the bank reserves but when this money will enter into the circulation, it will cause the hyperinflation and erode the world economy.

It will erode the purchasing power of your money in your pockets, savings account, PPF, Pension Plans, EPS, FDs, Post office Savings schemes and any other form of fixed income saving product.

Today the rules of money have been changed and the rich play the game of money in different ways. The Rich give their kids the entirely different kind of financial education right now that the poor and middle class are not giving.

This is because for the poor and middle class, going to school, get good grades, work hard, find a good job and retire on the pension plans or invest in mutual funds and diversify is the only form of financial education.

Unfortunately, most of the personal finance advisors, bloggers and gurus also spread this false personal finance educational messages to the new generations.

If you really want to learn these new rules of money to become and stay rich than read my eBook. Recently I have published my own eBook – My Journey To Billionaire Club: What Rich Teach Their Kids About Money That Poor and Middle Class Don’t?

You can download this eBook for FREE right now by clicking the above link and without any annoying registrations. In my eBook, I have explained the new rules of money. I have explained very clearly and briefly that how rich play the game of money. What rich think about money that the poor and middle class don’t?

If you want to teach your kids something about money than you should teach the lessons given in my eBook. So Don’t wait and start learning the new rules and lessons on money to get rich.

Rather than depending on the pension plans and the governments after your retirement, build your own Assets and become financially free.

Investing for Retirement

Investing for Retirement

Many people in their thirties think that What is the hurry of investing? There is till a long way to go for the retirement. But well, this is Myth. The truth is that, ideally you should start investing for retirement from the first day of your active earning life means probably from your twenties. Yes, ideally you should start investing for retirement from the day you get your first job.

Start Investing Early is the key of peaceful retirement. This is because the earlier you start, the compound interest will work more in favour of your investments to grow them large over the time. If someone has invested for 15 years for his retirement and the some other persons has invested for 20 years for his retirement than the second person will have much more retirement corpus than the first person.

The only 5 years of difference in starting investment can make a huge difference in the wealth later on. And that’s why when people ask me that, What is your advise about Retirement Planning? I say them that – Start Early.

Because this is the 90% advise that anyone needs to become financially Independent on retirement. And those who have started investing very early in their life have accumulated so much corpus in their early life that, they managed to retire in their forties and early fifties.

My another concern about Investing for retirement is that, most of the people think that investing for retirement means invest in the 401(k) plan and than wait and watch until your retirement to see weather the money has grown in your 401(k) plan or not? But well, believe me, The 401(k) Plan and the Social Security Plans are not sufficient enough to become financially independent after your retirement.

You will have to invest somewhere else rather than these plans for a financially peaceful retirement say for example in your own Business, Mutual Funds, Dividend Stocks, Rental properties…etc.. Investing only in 401(k) plan and Social Security scheme doesn’t guarantee any kind of financial peace after retirement.

So keep in mind these few key concerns about investing for retirement and plan your retirement accordingly.

Retire Early & Start a Business

Retire Early & Start a Business

Many people want to retire early because they want to start their own Business. Well, It is very nice that you want to start your own Business because you are passionate to do something new and want to add the value in the lives of literally millions of people by doing a Business.

But Well, What I want to suggest you is that, Why can’t you start your own Business at small level as a part time before you retire early? This is because you will know that weather your Business really has a potential or not?

Another thing is that, Business is a game of Money & Time both. Most of the people think that it requires only money to develop a successful Business. But well, this is not true. It requires Money & Time Both. How?…Well, see… I am talking about the Brand Name of the Business. A Brand Value of any Business won’t develop over night.

Say for example, take the example of “My Journey To Billionaire Club”. It doesn’t take one night to develop this brand. But it takes years of hard work to develop this brand as a Financial Education Brand.

And that’s why I advise you to start your business as small before you retire early. You can anytime give your full time to your Business after your retirement. But when you retire early, if you have started early than your Business would have developed a sufficient brand value.

And a Strong Brand Value means more profit. So rather than waiting for your early retirement, Start Early as a part time and later on when you retire early, start giving full time to you Business.

The Family Business Succession Plan

The Family Business Succession Plan

The Family Business Succession Plan is necessary for anyone. Now, let us understand what it means by family business succession Plan? Well, in the simple language, the family business succession plan means passing on your business to the next generation smoothly without any tax liabilities, family members conflicts and protecting the wealth of the business.

Let me explain you this by examples.

- Kongo Gumi Construction – is family owned. Founded in 578 AD in Osaka, Japan. It is currently managed by 30th generation. Some of the largest wealth creators and businesses are also family owned.

- Wal mart Stores – owned by the Walton Family, is the world’s largest company.

- In India too, the highest generator and creator of wealth are family owned businesses such as Tata, Birla, Godrej & Reliance…etc..

In the family owned Businesses, the head of the family is also the head of the business and the principal shareholder. Following are the vital issues in the minds of such leaders include,

- Who is most suited to protect, nurture and grow the business after me with the same values and traditions that I have Established?

- How Can I Ensure the integrity of my business and avoid division and the resultant loss of economic power?

- How will the ownership be transferred?

- How Do I ensure that the family wealth is preserved for the next few generations?

The Family Succession Plan is an Art and not the Science. The most recent example of an elaborate succession planning has been set by the GMR Group. The 58-year old group chairman, G M Rao has not only put in place a detailed succession plan to settle any business differences within the family, he has in the process segregated leadership from ownership.

In Summary, Succession Planning is essential for family owned business to protect not only the wealth of the family but also the brand value and reputation of the business and avoid disputes among the family members.

John Wu: Bankaholic.com

Johns Wu of Bankaholic.com sold Bankaholic.com to the the BankRate.com for whooping US $ 15 Million….!!!!

The following news was published in Mid-2008, the middle of the Recession in various Media.

Financial info site BankRate is expanding its financial product listings, as it’s acquiring Bankaholic, which provides info on deposits, savings accounts, and money market accounts. The company will pay $12.4 million up front, with another $2.5 million possible earnout over the next 12 months. Bankaholic’s sole employee John Wu will assist in the transition and remain for an unspecified period of time.

Read the More Detail about this Transaction on the Article,

The Blog Bankaholic.com sold for US $ 15 Million

Johns Wu is living in Great Los Angeles Area, California and he is in his early thirties and of course, he is retired now.

Wu started his Blog just 3 years back and within 3 years, he turned his blog into a multi-million dollar fortune. John Wu is the sole employee, CEO and founder of the Blog Bankaholic.com.

This shows that, it is possible to retire in your thirties and forties in the information age. No need to work hard until the age of 65 years. You can make your fortune in just 5 years in the Information age and than take the early retirement whenever you want.

There are several Internet Entrepreneurs around the world who are in their early thirties and have taken the early retirement. and now they are travelling the world and enjoying their life. So if you want to become wealthy in very young age than start your own Business in the Information age.

Is SBI Pension Plan Good?

Is it better to Invest in SBI Pension Plan?

Many people ask me this question. First of all I advise them to read everything about various types of SBI Pension Plans.

- SBI Pension Plan

After reading the above article, you will have a fair idea about SBI Pension Plans. There are basically 4 types of SBI Pension Plans that are available in the market. Now, let us come to the main thing. Is SBI Pension Plan good? Is it advisable to invest in SBI Pension Plan?

Well, Read the following article.

- Choosing a Best Pension Plan

Well, SBI Pension Plan is a good Pension plan. But the thing is that, I don’t recommend to invest you in any Pension Plans. Because Pension Plans are of 2 types of combinations.

01) Insurance + Savings (Endowment)

02) Insurance + Investment (ULIPs)

The only problem with Pension plan is their high administrative charges. Rather than why not go for,

- Term Life Insurance + Equity Diversified Mutual Funds?

Pension Plans are nothing but the opaque mutual funds. They are associated with high administrative charges. So it is advisable to buy a term life insurance policy separate and Mutual Funds separately.

Is it Advisable to Invest in SBI Life Unit Plus?

Is it Advisable to Invest in SBI Life Unit Plus?

SBI Life Unit Plus is a Pension Plan offered by SBI. Previously I have posted the article,

Choosing a Best Pension Plan

And in the article, I have explained in very detail that why it is not advisable to invest in any Pension Plans? This is because Pension Plans are the combination of Insurance + Investments. But the only thing is that they are associated with higher administrative charges.

And that’s why it is advisable to buy a separate term Life Insurance Policy and a separate Mutual Fund scheme.

I don’t recommend you to invest in SBI Life Unit Plus Pension plan or any other Pension Plan. Instead of that, go for term life insurance policy and 2-3 equity diversified mutual funds. This is because Mutual funds are associated with very low financial charges.

What to do If you Are 32 and Want to Retire at 43?

What to do if You Are 32 and Want to Retire at 43?

How to Retire within 10 Years From Now?

Recently someone asked me the above question. Well, To do this, I want to first of all read my article,

- How to Retire Early?

The above article is about retiring in twenties and thirties. But well, If you are 32 right now and want to retire at 43 than also the same principles apply. You have 10 years to retire so I think you should follow the following quick plan if you want to retire within 10 years.

01) Get Out of Debt – The day you start thinking of retirement, you should first of all get out of debt. Because this is the only trap that prevents you to get out of debt. If you are in a deep debt, you can’t retire early because you have to work hard in the economy to repay that debt.

So think of getting out of debt first.

02) Have an Emergency Fund – Once you get out of debt, build an Emergency fund and cut down all of your credit cards, Because credit cards are not the emergency fund. An Emergency fund is 3-6 months of your monthly expenses.

03) Start Aggressive Investing – Now, Start the Aggressive Investing. Save more and spend less. Divert every single penny towards stocks, equity mutual funds, businesses or anything else which you think that will give you the best returns in the long run.

Simply follow the above 3 step guide to retire within 10 years from now.

Eight Ways to Retire as a Millionaire

8 Ways to make a Million

Recently one of my friend asked me that, “Give me the Eight Ways to Retire as a Millionaire.” Well, there are several ways to make a million dollars. I will show you here 8 great ways to become a Millionaire.

01) Get a High Paying Top Level Job -

One way to retire as a Millionaire is that, you work hard and spend years in college to get high skilled degrees and later on take a job in some large corporation at management level. You will definitely make more than a Million dollars before you retire.

02) Become a Self-Employed -

Another way to retire as a Millionaire is, You become some kind of Professional person such as a doctor, lawyer, Chartered Accountant or IT Professional and make a Million Dollar.

03) Become an Entrepreneur -

This is my most favourite way to become a Millionaire. Just start your own Business from Scratch. And grow that Business to such a level that either it generates a Cashflow of Millions of Dollars or it’s Valuation goes to more than a Million Dollar. And later on you can become a Millionaire or even Multi-millionaire by selling your Fortune.

Many people became Multi-millionaires at Single Shot by selling their entire Business. Many retire as early as in their thirties or early forties and now they are travelling the world.

04) Become an Investor -

You can retire millionaire by Investing. You have to do disciplined and regular savings and investing for the long time. Many people do their day time job for whole of their life, live frugal, save money and Invest wisely for years and become a Millionaire by regular savings and Investing over the time.

05) Get Out of Debt -

You will ask me that, How Will getting out of a debt help you to become a Millionaire? Well, This is because Net worth is Total Assets minus total liabilities. So by reducing your liabilities, you can ultimately increasing your net worth. So if you pay off your all debt, your net worth will automatically be increased.

06) Live Frugal -

If You live below your means and spend less than you earn than you will have more money at the end of the year for long term investing and you will become a millionaire while you retire.

07) Create Some Asset and Sell it for Millions -

Creating your own Asset from Scratch is a sure shot way to become a Millionaire say for Example, Music, Books, Movies, Blogs, Websites, Businesses, Art, Paintings or anything else. Just find out your talent and develop some kind of Asset from that talent and Believe me you will become a millionaire or even multi-millionaire by selling that asset over the time.

Many Artists, Writers, Singers & Internet Entrepreneurs became Millionaires by selling their creative work for Millions.

08) Marry a Rich Spouse -

Well, This is also a way of retire as a Millionaires. If you marry a Rich spouse, you can retire with as a million dollar. Many people have retired by this way. But I would not recommend you this way because the people whom I know have retired as a Millionaire by this way had given lots of sacrifices and compromises to become rich by this way.

Anyway, So I have mentioned all the possible ways to retire rich in this Article. You just chose that which way suits you the most and you will be on the path of retiring as a Millionaire…!!!!

So Go Ahead…!!!!

Examples of People Who Retired Early

6 Examples of People Who Retired Early

Many people around the world have retired early. Some retired in their forties while some retired in their thirties. And now they are travelling the world and enjoying their life.

How To Retire Early: Six Examples

Read the above article. In the above article, few amazing examples are given. These people retired very early in their lives and enjoyed the rest of their lives like anything. Most of the people give their secret of successful early retirement to regular savings and Investing.

Here are the few secrets of the people who retired early -

- They Started Early: This is very important. People who retired early have started regular savings and investing since their early twenties. And that’s why the compound interest worked a lot on their wealth and over the time they become able to retire early.

- They Work Hard in Early years of Life: These people knew since early life that to make more money later, You have to earn and Invest more today. Than and only compound interest will work for them. What most people do is, they run to earn more in the later life.

- They used to invest Minimum 20% of their Annual pre-tax household Income: This is another characteristic of people who retired early.

- They have never borrowed money & Never used Credit Cards: When you take a debt of any kind, the compound interest starts working against you. Most of the people have to file bankruptcies because of Credit Cards and many other kinds of toxic debts.

Thus, people who retired early have revealed the above 4 secrets behind their early retirement. If you also want to retire early than Start following these secrets.

How to Compare Pension Plans?

How to Compare Pension Plans in India?

Comparing Pension Plans is itself a tireding job. Just a decade ago, The Indian market did not have many pension plan schemes. And thus you have to choose from only few options. But now the Indian market is full of Pension Plans from the following reputed private sector companies.

- LIC
- HDFC
- ICICI Pru Life
- Kotak
- And Many others…

And now, finally Indians have a Social Security Scheme just like USA. Recently on 1st May 2009, The Government of India has launched it’s own pension plan (Social Security) for its 89% of work force. The scheme is known as NPS or New Pension Scheme.

NPS is exactly same like Social Security scheme of USA. Thus, now we have several options available for choosing pension plans. Sometimes people get confused that which pension plan to chose. So Here are few basic things that I have learned about comparing the pension plans.

First of all, Ask yourself that, Do you really need a Pension Plan? This is because many financial experts feel that pension plans are nothing but the combination of Mutual Funds & Life Insurance Only. But they are associated with higher charges. So I personally think that rather than going for Pension plans, why not invest in equity diversified mutual funds via SIP and have a separate Term Life Insurance Policy?

So first of all take the wise financial decision that, weather you really want to go for pension plans or not?

Pension Plan = Mutual Fund + Life Insurance

Now, suppose you really want to invest in a pension plan than the next question comes – Weather you want to go for Government Pension Plan (NPS) or for some private Pension Plan?

As a rule, Government schemes are better than the private schemes. Because they are associated with the low fund management and administrative charges. However, You should compare various pension plans’ administrative and fund management charges before taking decision for investing in them.

I Personally don’t need to invest in Pension Plans because I am already investing in Equity Diversified Mutual Funds via SIP and I have a Term Life Insurance Policy. Both of these products fulfill the requirements of a Pension Plan. So I don’t need any Pension Plan.

Make Internet Business & Retire Early

Make Internet Business to Retire Early

Do you want to retire early? Say for example in your early fifties, forties or even thirties? Than i think you should focus your time, energy and money on developing Internet Businesses. This is because the internet businesses are the assets which appreciate much faster than the traditional offline assets such as stocks, bonds, gold and real estate.

According to one study, in the past decade, several people have taken early retirement and from these people, most of the people retire early by doing internet Businesses. Here I will tell you the 2 possible ways to retire early by doing an Internet Business.

01) Develop an Internet Business & Put it on Autopilot -

Well, Here you develop an Internet Business out of Scratch and work hard behind it to grow it. And you take this Business to a level that, from that level, you can hire a Manager to run it even without your presence.

This is known as putting your Internet Business on Autopilot. From this level, you will be able to enjoy a steady and growing stream of passive income even if you don’t work at all. And from that level, you can retire anytime in your life.

02) Develop an Internet Business & Sell it for Huge Profit -

This is the second way of retiring early by doing an internet business. Here, you develop an Internet Business out of Scratch and later on Sale this Business to some new buyer or an Investor for a huge profit.

This is the way to make huge money. Because here you are going to sell your entire fortune. And thus the new interested buyer will give you a huge premium to buy your business.

Thus, if you want to retire early than you should start focusing on developing internet businesses as early as possible in your life. The more you start early, the more early your Business will develop a Brand Value.

Starting Own Business to Retire Early

Starting Own Business to Retire Early

If you want to retire early than the best way to retire early is to start your own business as early as possible in your life. It can be any kind of business. Weather it can be a traditional offline business or it can be an Online Business.

But starting your own business is the key of retiring early. There are two main logical reasons to start your own business.

- One reason is, if you start your own business than you can grow it to the level that from that level, you can put it on the autopilot by hiring business managers. And from that day, your business will run even without your presence. No matter what you do. Weather you work hard on your business or travel the world, once you hire the business manager, it will run automatically even without your presence.

- Second reason is that, If you have developed a successful positive Cashflow generating business than later on in your life, you can sell it for the huge profit and make lots of money by selling your business that you can retire early.

In fact, I know several people around the world who retired by selling their fortune at once and they have made millions of dollars at single shot by selling their fortunes. And now they are travelling the world and enjoying their rest of the lives.

Thus, starting your own Business is probably the best way to retire early. Because you will have 2 options later on. First is that, you can put your business on the Autopilot and earn passive income for the rest of your life and the second is that, you sell your entire fortune and make huge money by selling your entire fortune.

Quickest Way to Early Retirement

Quickest Way to Retire Early

Many people ask me the above question. In fact, i receive such kind of queries every week. Now, let me give you the straight forward answer of your Question.

The Quickest Way to Retire early is – Flipping the Business (Traditional offline or Internet Business) for huge profits

Well, The people who retired early in their lives around this word have retired by this way only. There is no other way in this world which can give you this much quickest retirement. If you want to retire early than you MUST have to develop a successful Business, work hard for 5 years to grow it and later on selling it for the profit to the new buyer.

The real money is inside the Capital Gains of the Business. A Business is the Asset and it appreciates in its price over the time. And if it’s an Internet Business than it can appreciate in its value over the time like anything. In fact, many Internet Entrepreneurs around this world have developed a successful Internet Business and later on sold it for millions of dollars and now they have taken the retirement and now they are travelling the world.

As long as you own a Business, its valuation is “On Paper” only and unless you sell it, it will be On Paper only. And most of the time of the life, the valuation of such assets remain on paper only. This is because unless the owner sells his Asset, this profit remains on paper only.

Taking the higher income job is not the way of quickest retirement. This is the one and only way to take the quickest retirement in your life. So if you want to retire early in your life than you have to focus on flipping a Business…!!!

Retire On Dividend Paying Stocks

Dividend Paying Stocks: Way to Retire with Financial Piece

If you want to retire with financial peace or even you want to retire early than the Dividend Stocks are the answer. This is because Dividend Stocks can be a good passive income stream for you as well as give you the capital gains. If you invest in the Growth Stocks than probably you will never have a passive income for the most of your life. The problem with Growth stocks is that, they give you good capital gains but you can’t spend that money until you cash it out.

Now, the Annual Yield on Dividend Stocks is around 4-8% per Annum. On and average, the Yield of Dividend Stocks is 5% per Annum. Thus, for every $ 1,00,000 of investment in Dividend stocks, you will have a Dividend Income of $ 5,000.

So if you have $ 1 Million than you can invest it in Dividend Paying stocks and generate a steady Passive Income stream of $ 50,000 every year without much effort.

Everyone needs to think about developing a passive income stream. This is because after the retirement (Weather the early retirement or after the age of 65), you will no longer have any paycheck income and thus, you will have to depend on the Passive Income only.

Thus, if you have a steady stream of Passive Income than you can retire easily with financial peace. And Dividend Stocks are the one way to develop a passive income among several other Passive Income Ideas.

Smart people start developing their Dividend portfolios since very early in their lives. And thus, they have developed a sufficient portfolio Income on which they can live the rest of their lives even without working. It is also possible to retire early with the Dividend Paying Stocks. But for that, you have to start investing early…!!!

Build Passive Income to Retire Early

Build Passive Income Streams to Retire Early

This is the Information age and in the Information age, no one wants to work hard and retire at the age of 60 or 65. But more and more young people want to retire in their thirties and forties. And in fact, few people around this world have managed to retire early in their thirties or early forties only.

Now, the question is that, What is the basic element to retire early? How can you retire early and enjoy rest of your life?

Well, the Core element of retiring early is – You develop multiple Passive Income streams in your life.

This is the only way to retire early and enjoy the rest of your life. Now, Passive Income is the income to earn which you don’t have to work hard. You have to put only one time effort and that’s it. That Income flows for the rest of your life and for future generations even without your presence.

Here are the few Examples of Passive Incomes.

- Rental Income
- Dividend Stocks
- Interest Income
- Portfolio Income
- Books, Movies, Songs, Music and other Copyrights Royalties
- Business in which your presence is not required
- Income from Online Assets (Web Properties) such as Blogs, Forums and websites in which once you develop a Blog/Website having sufficient web traffic, that income will keep flowing into your account.
- Insurance Agent Sales you the Insurance Policy and make money for the year
- Network Marketing
- You do a Seminar or Stage show at once and make huge money

Thus, the above are the examples of the Passive Income. If you want to retire early and enjoy your rest of the life than you have to build anyone or more of the above passive income streams. Developing the above Income streams is the one time hard work.

Say for Example, you work hard once to acquire the Rental Property. You work hard at once to write a great book, produce a movie or a song. You work hard at once to develop a great blog or a website, you work hard at once to develop a portfolio of Dividend Stocks…etc…

This is one time hard work only. Means you work hard at once and than enjoy the passive income for the rest of your life. Take the Example of Michael Jackson. He worked hard at once only to develop those mind blowing pop songs and today even after his death, his songs are still generating hundreds of millions of royalty income for him every year.

Take the Example of ‘Rich Dad Poor Dad’ – The New York Times Best selling book by Robert Kiyosaki. Robert worked hard at once in the 1997 to write such a great book and today he is still making millions of dollars in royalties by selling his books.

How To Retire Within 5 Years from Now?

How to Retire Within 5 Years from Now?

Many people ask me the above question. In fact, this is the question mainly of youngsters who have just finished their college and enter into the real world. This is the information age and unlike Industrial age (Before 1990) people, the Information age generation is not ready to work up to the age of 65 years until they become disabled.

In the current generation, people just want to work hard for 5 years and want to take full time or semi-retirement after that and want to travel the world or enjoy the rest of their lives.

Now, the question is that, Is it Possible to Retire within 5 years from Now? And if yes, than How?

Well, Here I will talk about realistic examples and ways to retire within 5 years from now. Don’t expect something like “Get Rich Quick” scheme from me. You will have to work hard for this. So What is the realistic and possible way to retire within 5 years from now?

Well, The answer is Internet Business.

If you want to retire this much faster than the only way to do this is The Internet Business. Because the Internet Business is the only Asset in this world which valuation goes high at this much faster rate. Take the Example of myself. I have started my blog since March 2008. Today it’s almost one and a half year since I Blogging. Now, I can retire after 5 years from 2008 if I want by either selling this blog or hiring writers and putting this blog on the autopilot if I want.

In fact, many Internet Entrepreneurs around this world are living retired or semi-retired lifestyle because the Internet Businesses they have developed are now running without their presence and making lots of money every year as a passive income on which they can live rest of their lives without working.

Many Internet Entrepreneurs are in their twenties or early thirties and they have sold their single last online asset and made literally 2-3 Million Dollars and now they are retired and travelling the world and playing in the casinos around the world.

So if you want to retire within next 5 years than start your Internet Business right now. Believe me, You will definitely retire after 5 years and you will remember me and my advise for the rest of your life…!!!