Retirement Plans

Retirement Plans

Whatever your age, it's fun to think about your dream retirement spot. A lake house, a beach town, an apartment in the city. If you're at or near retirement age, it's time to start giving more thought to what makes an ideal retirement spot. Why do I need retirement plans? Retirement is one of the most important life events many of us will ever experience. From both personal and financial perspective, realizing a comfortable retirement is an extensive process that takes sensible planning. Even once it is reached, managing your retirement is an on going responsibility that carries well into one's golden years Is it too late to begin planning for retirement? Whether you are 25, 35 or even 55, it is never too late to begin planning for your retirement. The age you decide to begin the retirement planning process, however, will determine the amount you will need to save to reach your retirement goals. Where do I begin planning for retirement? Begin by setting goals for your retirement. Depending on the goals you set for this time in your life, which could include travel or the pursuit of hobbies, you could need anywhere from 70-100% of your pre-retirement salary. You may decide to speak with a financial analyst to assist you in your retirement decision making.

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Here are a couple of financial tools that will help you achieve the 5 step plan: National Pension Scheme: NPS is available to all Indian citizens between 18 to 55 years of age. For example, one can invest Rs 1,000 every month in the NPS which can increase every year based on one's income levels. The final corpus available at the age of 60 years would depend on how the markets have performed over the years and the value of the pension will depend on the size of this corpus. However, there is no assurance on the quantum of pension value to the beneficiary while opening an NPS account.  Investment : How to invest, where to invest - In “Early retirement – Why a fixed deposit (FD) is not a good choice”, we discussed that the best option for retirement planning is to create sources of passive income while you are still working. Stocks : Now, this is one unconventional investment avenue for retirees! But please note that this is an avenue that should not be ignored while investing your retirement corpus. With life expectancy increasing due to new medical developments, you want your retirement money to last for your entire lifetime.  Mutual Funds : Though the market is flooded with retirement plans, you can also consider building a huge retirement corpus with your existing mutual funds portfolio.All you need is a little bit of number crunching, a good but small set of mutual funds (researched and selected yourself or with the help of an adviser) and you are ready with a plan.  Life Insurance : Life insurance is different. We are all rather attached to our lives. What we must remember is, as strange as it may sound, life insurance is not bought to insure our lives. After all, our lives are priceless, and no amount of money would be enough to insure it. What life insurance is intended to insure is the financial loss, or hardship, that someone would experience should your life end.  Contact us and we will help you with your retirement plans and help you live your dream.