We have come across many an individual who wants to have an early retirement. But when asked how they will ensure early retirement, the majority of them had no replies!! While some of them want to depend on their children and other family members, others shake their heads and say “Will never retire!”. These are some misconceptions about retirement. Every individual must plan for a comfortable Now if you are tired of the daily grind and mundane routines, you should plan for an early retirement. India’s First Free Online Financial Advisory, Moneymindz
Gone are those days when people lived in Joint Families and retired people received pensions if they had worked in government services. Today, pensions aren’t as widespread as they were earlier and joint families are very less in number. At this rate, you have to save for your own retirement without depending on children, relatives or friends. Taking a loan is not even an option after retirement. You can’t keep working forever too.
1. Keep a retirement plan with you
Ask yourself when you want to retire, what you want to do after retirement, how you would afford whatever you want to do during retirement, etc, Once you have done that, you can go to the next step. India’s First Free On call Financial Advisory Moneymindz
2. Anticipate possible requirements and expenses
During retirement, you have to be in a position to easily afford half of your current lifestyle. Check your budget and see your monthly expenses. Try reducing those expenses. Calculate how much the total monthly expenditure can cost with an 8% inflation rate. Focus on having that much corpus by the time you plan to retire. You may also want to take up hobbies at the time which cost money and you aren’t able to do that now due to lack of time. Save money for that too.
3. Invest for Retirement
Public Provident Fund, Employee Provident Fund, National Pension Scheme, 401 (K) are some government-sponsored retirement schemes available. But that’s not sufficient. Invest for retirement separately as well so that you can beat inflation with money from the government-sponsored schemes as well as your individual investments. Certified Financial Planner Kuber Mindz Moneymindz
4. Be aware of your risk appetite and financial goals as you invest
Retirement is the probably not the only thing you are investing for. You would be investing to keep an Emergency Fund, to fund your child’s education and wedding, etc. So you should invest diligently and patiently. Know how much risk you can take and what the time frame is for each financial goal you have.
5. Have a Plan B
You must always have a second plan ready just in case the first plan doesn’t go out well or doesn’t happen as per expectations. You might be hit with an emergency you never expected. At that time you may find it hard to arrange money. So you need a Plan B for the same.
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