Life in retirement is as long as career itself and sometimes more. Retirement means no salary on the last day of each month, no increments, no health reimbursements and no added bonus! It also signifies inflation could be hurting more than ever with increased lifestyle and healthcare costs but limited/no income at all. All of your investments can be subject to 'market risks' and irrespective you could have to liquidate some portion to meet current expenses.
If not prepared properly, you could have to live a life of compromises.Travel and recreation could seem to exist for the rich. After living a luxurious life, will you be able to compromise on the standard of living?
For a carefree retirement life at least as great as the working span , you must start planning today as it's never ever too soon to plan for retirement life!
3 Step process for Retirement Planning:
1. Evaluate the price of post retirement plan based on present lifestyle net of inflation. Add greater healthcare costs, getaways, other family parties and reduce charges such as children's education and rent, should you own your house.
2. Estimate 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 expected post-retirement expenditures.
3. You should begin early and systematically to see the power of compounding and top up this kind of investment whenever feasible. Whilst investing for retirement life, parameters like diversification, portfolio balancing, risk, taxation, estate planning must also be handled.Most importantly there should be ample liquidity to tide over any contingency. The investments should be able of safeguarding one from inflationary pressure at the same time must be wealth protectors.
The key to achieve success in the above mentioned is - Make use of income for more than just consumption; analyze the importance of each life phase to reap fruits of investing and plan in a disciplined way to control emotional or distressed spending.
And now, you can come up with a plan for things you can do while you could not take out time to do in your work span and also flaunt an independent retired life - pursue a hobby, have a family vacation, join a club and live life king size!
If not prepared properly, you could have to live a life of compromises.Travel and recreation could seem to exist for the rich. After living a luxurious life, will you be able to compromise on the standard of living?
For a carefree retirement life at least as great as the working span , you must start planning today as it's never ever too soon to plan for retirement life!
3 Step process for Retirement Planning:
1. Evaluate the price of post retirement plan based on present lifestyle net of inflation. Add greater healthcare costs, getaways, other family parties and reduce charges such as children's education and rent, should you own your house.
2. Estimate 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 expected post-retirement expenditures.
3. You should begin early and systematically to see the power of compounding and top up this kind of investment whenever feasible. Whilst investing for retirement life, parameters like diversification, portfolio balancing, risk, taxation, estate planning must also be handled.Most importantly there should be ample liquidity to tide over any contingency. The investments should be able of safeguarding one from inflationary pressure at the same time must be wealth protectors.
The key to achieve success in the above mentioned is - Make use of income for more than just consumption; analyze the importance of each life phase to reap fruits of investing and plan in a disciplined way to control emotional or distressed spending.
And now, you can come up with a plan for things you can do while you could not take out time to do in your work span and also flaunt an independent retired life - pursue a hobby, have a family vacation, join a club and live life king size!
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