Life in retirement is as long as career itself and some times much more. Retirement means no salary on the very last day of every month, no increments, no medical reimbursements and no added bonus! It also indicates inflation could be hurting more than ever with increased lifestyle and medical costs but limited/no income at all. All your investments could be subject to 'market risks' and irrespective you could have to liquidate some portion to meet present expenses.
If not planned properly, you could have to live a life of compromises.Travel and recreation could seem to exist for the affluent. After living a luxurious life, would you be able to compromise on the standard of living?
For a care free retirement life at least as great as the working span , you should start planning right now as it's never ever too soon to plan for retirement life!
3 Step procedure for Retirement Planning:
1. Evaluate the cost of post retirement life based on present lifestyle net of inflation. Add greater health costs, vacation trips, other family celebrations and lower costs such as children's education and rent, if you own your house.
2. Calculate the amount you would need to save regularly from now to build the retirement corpus which if gathered at that time must be sufficient to substitute your pre-retirement income or a little more than predicted post-retirement expenditures.
3. You need to start early and systematically to see the power of compounding and top up such an investment whenever possible. Whilst investing for retirement, parameters just like diversification, portfolio balancing, risk, taxation, estate planning should also be handled.Most importantly there must be sufficient liquidity to tide over any contingency. The investments must be capable of safeguarding one from inflationary pressure at the same time should be money protectors.
The key to achieve success in the aforementioned is - Utilize income for longer than just consumption; analyze the importance of each life phase to harvest fruits of investing and plan in a disciplined approach to control emotional or distressed spending.
And now, you could come up with a plan for things you can do whilst you could not take out time to do in your work span and also flaunt a completely independent retired life - pursue a hobby, go for a family vacation, join a club and enjoy life king size!
If not planned properly, you could have to live a life of compromises.Travel and recreation could seem to exist for the affluent. After living a luxurious life, would you be able to compromise on the standard of living?
For a care free retirement life at least as great as the working span , you should start planning right now as it's never ever too soon to plan for retirement life!
3 Step procedure for Retirement Planning:
1. Evaluate the cost of post retirement life based on present lifestyle net of inflation. Add greater health costs, vacation trips, other family celebrations and lower costs such as children's education and rent, if you own your house.
2. Calculate the amount you would need to save regularly from now to build the retirement corpus which if gathered at that time must be sufficient to substitute your pre-retirement income or a little more than predicted post-retirement expenditures.
3. You need to start early and systematically to see the power of compounding and top up such an investment whenever possible. Whilst investing for retirement, parameters just like diversification, portfolio balancing, risk, taxation, estate planning should also be handled.Most importantly there must be sufficient liquidity to tide over any contingency. The investments must be capable of safeguarding one from inflationary pressure at the same time should be money protectors.
The key to achieve success in the aforementioned is - Utilize income for longer than just consumption; analyze the importance of each life phase to harvest fruits of investing and plan in a disciplined approach to control emotional or distressed spending.
And now, you could come up with a plan for things you can do whilst you could not take out time to do in your work span and also flaunt a completely independent retired life - pursue a hobby, go for a family vacation, join a club and enjoy life king size!
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