Let’s start planning for the investment at the early age to experience the golden moments in your post retirement life. If you’re not planning for the proper investment at the early age then simply you’re planning to fail your retirement life.
Many people understood the retirement planning in many different ways. Some of them have a big question that what they are going to do after the retirement. How they’re going to spend the time which they will get after freeing from all sort of daily routine. Many of them are still thinking that where they will be staying after the retirement.
“Here we’re going to understand how all of the questions are related to the money which are popping up in your mind for the retirement.”
After thinking about everything you will find yourself that you’re facing only one question which is MONEY. Start of the investment at the early age is as important as breathing because this is the thing which will be holding your hand when your hand will be so tired to work anymore.
“Retirement planning is the main part and the ultimate goal of any financial planning.”
Successful retirement planning is solely depending on the successful financial planning. Any investor adviser, mutual find manager, pension plan adviser always forces their client to keep invested. Because this investment will multiply your fund by the magic of compounding. This fund you can avail as retirement pension plan when you completely get out of the corporate/business life.
Stipulated Age of the Retirement:
Stipulated age of the retirement is 58 many of us plan to retire at the age of 58. Many of you wants to take retirement early 40. Whereas few people can’t take the early retirement if they’re working for the big multinational organisation or the government agencies.
Post Retirement House and Lifestyle
This is the crucial question might be bothering you if you’re planning for the retirement. Post retirement life style is going to be compromised one if you’re failing to plan for the retirement. Maintaining the similar life style after taking the retirement is quite difficult due to the inflation and other conditions. Post retirement house is the big question for you. Post retirement will not permit you to go outside and earn more. Resultant one can plan to stay away from the city life and they chose to stay in a city which is less expensive and affordable.
Protect your Family from the Financial Risk
If some how you are not capable to go outside to earn money due to illness, accidents etc. then this can be the bigger risk for your family, in order to protect your family from all sort of unlikely financial risks you need to think twice before unnecessary spending. Your savings and the right investment will take care of your family in case of some trouble.
We’re living in an age of pomp and shows everybody is fascinated by the outer appearance and running towards the glittering world without knowing what is exactly behind the glitz. This thing forces many of you to spend more money on lifestyle by picking bank loans and with the help of the credit cards. But keep remember one thing as you’re going to spend money with the help of credit cards just for the sake of lifestyle then it will be danger alarm for you. This habit will not allow you to save the money and after every end of the financial year you will be end up by paying high interests rate and no savings.
If you’re familiar, schooling fees are going to increase day by day. Due to industrialization of the education system it is very difficult for middle class parent to admit their child at reputed school. Estimating the cost of education is important factor because you cannot imagine how much raise can be in education in next 10 to 20 years from now.
Most of us forget about the basic fact that, health is not going to be at same level when you will be retiring. You might have some illness and some sort of medication you might require to sustain yourself. Consideration of the medical expenses and planning for these expenses is essential in order to have a pleased experience of the post retirement life.
Unexpected Surprises from Life
Life is unpredictable you can not predict what is going to happen in next 2 years. It’s all mystery in order to deal with the unpredictable things you should be financial capable enough to bear such kind of surprises.
“Last but not in the list, if you’re planning to keep some money for your next generation after your death then this should also be considered as the part of your retirement.”
Let’s Makes your Retirement a HAPPY RETIREMENT
First of all, you need to make some basic calculation about your life and the expenses. This will help you to understand how long you’re going to live and all possible expenses which will require you throughout the rest life. If you’re already running any financial plan then you need to include your retirement plan in to already running financial plan.
This point will work effectively to make you happy in your retirement. First, you need to note down all the possible non negotiable medical expenses. These expenses may include your medication bills, nursing, medical insurance etc. You can not make any negotiation with your life by compromising medical expenses. By calculating the non-negotiable expenses, you can spare some fixed amount out of your pension and you can concentrate more on investment to increase the post retirement income.
Note down all the things which you own and you will be required to purchase in your daily life. This amount will include all the expenses and required costs. Daily expenses will give you the clear-cut idea about the overall basic expenses you will be having monthly. Key thing you need to remember while calculating the daily expenses is inflation. Inflation may force to fluctuate your expenses estimation.
Check Your Post Retirement Income
It is utmost and important thing you need to determine while drafting the retirement plan. You need to check what are the possible cash flows going to give you benefit. This cash flow may include your pension plan, dividends getting from the shares, interests from FD, Rent from the house etc. After evaluating all your post retirement income source, you can reach to the round figure of your income.
After calculating the overall expenses and the post retirement income, you will come into the conclusion that how much big hole your monthly expenditures are going to create on annual planning.
If you’ve calculated the overall expenses vs income sources then you will most probably come into the conclusion that your expenses are either equal or more than the income source. If this is the case then it’s big danger alarm for you.
“You must have at least 80 percent of financial back up of your entire pre-retirement plus post retirement expenses in order to have successful and happy retirement”
If you’re failing to do that then you will land your self in danger. Early investments, Early Savings and limiting unnecessary expenses by planning proper financial management is the key of the successful retirement. If you’re failing to do then most probably, you’re planning to fail for your rest life after taking the retirement.