Retirement is the integral part of the career, we would say it’s a part of the career itself when you will decide to take a big and brief relief from the work routine. Retirement period is the golden dream of every single service person, business person. Every worker come across the situation where he or she frames a golden moment of the retirement. Mostly we’ve noticed the retirement dream is further classified in two main categories
Golden Framed Retirement Dream:
Where every single person who is dreaming to take a retirement would love to spend full time with family on a sandy beach having lots of coconut tress all around, lush of green fields, forests train track, long roads with the cool breeze around having the perfect view of the nature.
Dreaded Retirement Dream:
At the same time person who is in the mod of service or business could have the dream of the pain and worries when thinks about own retirement. If you fail to plan your retirement wisely then you will end up with all the worries, negations related to your medical bills, fulfillment of the routine life expenses with respect to the significant growth in inflation.
“Which dream are you dreaming about it, is it a dream of “Golden Framed Retirement Dream” or it’s a “Dreaded Retirement Dream?”
Everyone is fascinated about the golden framed retirement dream. Now, it’s up to you how seriously you are thinking about your retirement. Just by choosing the “Golden Framed Retirement Dream” will not be enough because as the time passes picture which you’ve drawn in your mind will certainly change over the years as you near closer of your own retirement.
What Does it Take to Successful Retirement?
Proper financial planning is the key which will land you in successful retirement. You need to put your own retirement plan in motion for yourself so that you can have the pleasant experience of the retirement.
First you need to ask one question to yourself, how much wealth I need to accumulate on own self to set own self free from all sort of the financial burden. You can quote required wealth after the retirement which will be solely depend on your current life style. Once you receive the answer from you then you need to steadily act upon that so that you can make a sense out of your investment to feel the pleasant experience of the retirement.
Take Cup of Coffee, Pen, and two Papers
- Paper One:
Take a few minutes to boil fresh coffee. Then seat on chair and start taking sip of your hot boiled coffee and think about your annual expenditure based on the monthly expenses. Note down all your annual threshold of the expenses in Dollars on your paper. Once you done that then adjust the similar quoted annual threshold for post-retirement and make some modification which will occur after you retire.
Once you start to estimate your retirement plan then you need to think about the multiple factors which will allow you to estimate the things accurately. This assumption varies from the person to person and it depends on the area of the interest. For example, one may plan for the vacations, one may plan to spend time out of the county, one may come across disease and list goes on. Consideration of all these pointers is essential to quote the correct estimation of the post retirement annual expenditure.
- Paper 2:
Good job guys, now you’ve successfully calculated the post retirement expenditure estimation. Now we’ve second paper in our hand to note down your investments. Start noting down all of your investments and the probable returns on the investment. This will quote will help you to determine how much you’re investing now and how much you need to invest till the time you retire completely. If you’re unable to determine the net worth of investment then reach out to the good financial planner nearby to understand the value of locked wealth and the necessity of the investment to land on pleasant retirement.
DII factor of the Retirement
This DII factor is death, Inflation, and Investment. These three factors will help you to estimate the accurate quotations for your retirement to have the pleasure experience of the retirement.
- Death Factor: Everyone who has birth will pass away as well. You need to think about your life at first place, how much time you’re going to live. Let’s say you’re of the 35 age and you’re assuming you can live life till the age of 80 then you’ve 45 years still in your hand out of which most of the time will be involved into the retirement time.
- Inflation Factor: Inflation is increasing significantly day by day. You need to think how much the inflation would be during the period of your retirement. This is the crucial factor and most of us fails to determine how important role inflation can play.
- Investment: You need to take a closer look of your investment. How much you’re sparing out of your wealth for investment and how your entire portfolio looks after the period of your service retirement.
More conservatively you estimate the safer retirement you have. Inflation is the culprit which is going to down grade the overall return of your investment. To safe guard your post retirement return you need to think twice before making investment. Investment is all about making sense out of your hard-earned money so that you can have good life. Focusing on the growth type mutual funds, and growth type shares is important.