Contents
What is Retirement Planning?
Retirement Planning is a plan where one decides to meet their goals once they stop working. In short planning today for a good future. One cannot ignore retirement planning. It is very important for everyone. Have an eye on why Retirement Planning is important below.
Why Retirement Planning is important?
- Financial Independence
- To live your post-retirement life in your way
- For your good health
- Also to avoid work pressure after post-retirement
- One can avoid over-dependence on social security benefits.
- Retire early and enjoy life peacefully
Need for Retirement Planning.
Nowadays Retirement Planning has become a need for many people because of the following points
- Lack of social retirement benefits
- The rise in cost in short inflation
- Medical Emergencies
- To plan for your kids
- Life expectancy has increased
- Don’t rely on children
Benefits of Retirement Planning.
You too can enjoy the benefits of Retirement Planning if you are thinking of making Retirement Planning
- Backup for financial emergencies
- Return on Investment
- Win over Inflation
- Financial Independence
- You can retire early
- Protection of your hard earn assets
Types of Retirement Planning?
- Insurance
- Employment-based
- Public Provident Fund
- National Pension Scheme
- Whole life ULIPs (Unit Linked Insurance Plans)
Retirement Planning Steps.
1. Decide your retirement age
The first step of retirement planning is to decide your retirement age at which age are you going to retire. So according to that you will have to calculate your cash flow let’s say you want to retire at 60 and your life expectancy is 85 so in the next 25 years how will you manage your cash flow so that you can easily enjoy your first life without any pressure?
Let’s take the second example if your age is 21 and you want to retire at 30 and your life expectancy is 90 so how will you manage your portfolio urine come so that you can leave the rest of the 60 years of life happily? Hope now you will get a crystal clear idea of how important is determining the age of retirement for perfect planning.
2. Start early to retire peacefully
Starting early in any field or in anything is an extra advantage for yourself. Because if you start early you have time to try multiple things that are working for you or not so that you can switch in no time if you have some time. And if somebody starts late how can he try multiple things that which things are working for him or not? The point is to retire peacefully not in hurry or not in under pressure if you want to return peacefully so according to that you have to make a plan you have to do tense of things and it is show that you get you will get in some trouble but anyhow you will take a little get over that problem so for that starting early is better.
3. Know your retirement corpus
Knowing your retirement corpus. Corpus don’t you get it, okay let’s talk in simple words Corpus is something which you need let’s say you need 10 crore to live the rest of your life peacefully that tells here is the Corpus ok retirement corpus I don’t want to get into the definition of that detail that will go bouncer for many of you. In between my personal tips that if you want you can follow it or ignore it up to you keep things simple and easy to use that’s it don’t make it complicated in anything okay.
Let’s get back to a topic so that that I will call us can be different from different people you can’t blindly copy anyone corpus if somebody wants the retirement corpus of 5 crore that doesn’t mean that you will have a good lifestyle with that five crore are you getting my point it’s all depend on the persons needs want this so one should have their retirement corpus that to can very for very people somebody can leave happy life in 2Cr and somebody need 10Cr.
4. Calculate the future value of your current savings
Well, this is the most important but seriously only points are very important but this point is more important to the rest because if this somebody is missing this point or ignoring this point or anyhow missing this point, okay so there is a high probability that after making perfect plan your might can get into trouble in future. You should know the future value of your current service let’s say you have one you are now so what will the value of 1 CR be after 15 years do you know okay let’s reveal the truth 36 lakhs. Shocked 😲 right this is what real finance is. Having doubts check this article.
5. Get in touch with a financial expert
If you think that you don’t know anything no problem relax you can easily contact any financial advisor expert so that you can make your retirement plan so can protect your money and video’s future by investing in the right place without taking unwanted risks. It is not mandatory to get in touch with a financial expert if you already know or have a good command of finance so you can make your own retirement plan. And if you are thinking you need to learn lots of things regarding finance so don’t forget to subscribe to a notification which will help you to get knowledge free of cost.🙂
6. Create a portfolio
Creating a portfolio is a good option but many people confuse themselves and make the portfolio whatever return they might get better but because of their specifications how you don’t do this mistake of education only one place wasting is also bad so at least try to balance how to put for you so that you can have a good portfolio.
7. Track and review your plan at some interval
It’s not the first and last that okay you now created your retirement plan and it’s over no wrong you have to take care of your retirement planning you have to analyze and review overtime so that you can know whether you are going on the right track or not. If necessary you can change little bit things but if necessary then only. But I highly suggest making your retirement planning with proper calculations.