Way to plan for the Retirement
Modern lifestyle hungers with the Job and Money. Everyone needs and stands with their Retirement. Google.com also responding more for ‘Retire Early’ than ‘Retirement Planning’. So, Retire Early is a kind of word, but plan for the retirement is so important today. As we are growing gradually, but the tech Gadgets and our Expenses are growing rapidly.
What about the Retirement Planning ?
It is an Obvious plan, ensure that you have a sufficient money or income to meet the expenses, when you are at the stage of retirement. The most common goal for everyone’s at their retirement stage is a regular income to meet the expenses, (i.e) Pension or getting a regular cash flow from the created corpus for Retirement. One must go to achieve this, they should Save and Invest. It’s not just saving, but Investing it. The Regular savings and Investing at early stage and will give a regular income by the Created Asset or Corpus.
Plan for the Retirement:
- Look out and understand the two stages (Accumulate and Distribute). At the Accumulation stage, your savings and investment will be made for the Retirement corpus. At the Distribution stage of Retirement, your created retirement corpus will generate you a regular cash flow or income. So, Investment made at the Distribute Stage is primarily income oriented.
- Calculate the Current Expenses (including your Loan EMI, other Debt, Education, Business Goals, if you want to retire early) and Estimate the Expenses in retirement or income at retirement.
- Save and Investing Regularly, then utilize the opportunity to make invest.
- Don’t forget, Retirement Stage is a long term planning — Stick to it.
- Finding the suitable investment product or just getting a Financial Adviser, who cares you on Retirement Plan (Financial Education).
- Read and Review your creating corpus once in Three or Five Years.
- Change of action if required, make it Rarely.
- Regular Cash flow / income is an important factor for the Retirement planning.
- Your Expected Return Rate for the Retirement income should be Inflation Adjusted Rate.