Planning for retirement


All of us thinking to have a hassle free retirement life without being burden to any one. To have this, you should be financially well secured. Some early planning will help you to achieve these goals. Here are some important points you should always keep in mind to have a free, independent retirement life. Read further.

Retirement plan is not a single step process. It has lots of early planning and action involved. Go through each of these points and you will be able to understand each of this and act well.

• Plan early. You should have well plan on the retirement year. It should have in the age of 50 or 60 depends on individual. The importance of a plan on your retirement age help you to start your savings and investments early as possible as well as get an idea about the money required each month to save for invest.

• An investment for retirement life should start as early as possible once after you decide the retirement age. If you are starting your investment for the retirement at the age of 25 or 30, the monthly amount required to save will be little. If you plan little later in the age of 40 or 45, your monthly savings should be higher and some time it will not be able to meet that investment amount requirement.

• Have your monthly budgeting to identify the required and unwanted expenses. This will help you to save more money to invest. You should be well aware about the needs and wants.

• Free from debt first. Identify the trap of debt. Prepare a plan to pay-off all your debts first, before start saving and investing for retirement. Control credit card and personal loans.

• Have realistic investment plan. Always choose a well balanced investment plan upon your risk taking capacity. You could have a well balanced portfolio depends on your age and need to be re-balanced upon your age. Below are the points when dealing with investment plan.

o Get the help of a well experienced financial adviser if you are not able to do you investment plan independently.

o Always prefer the investment instrument that has ability to grow your money along with economic growth and time. Read this article to identify such instruments easily.

o Carefully choose the debt instruments that giving the compounded interest than a flat interest like bank deposits and company deposits.

o You can select and Unit Linked Insurance Plan focused for retirement planning. Carefully choose one has advantages of well performing funds, low costs. Remember, retirement investment plan not required insurance and thus you will be free from mortality charges.

o Monitor and Re-balance your portfolio time to time depends on age. When you are investing with equities, you should have patience and the investment focus should be long term than short or mid terms.

o Do not touch that money: Never touch your investment instruments or dip into your retirement savings to meet temporary money requirements.

• Start the family floater medical policies at the early age and renew the same till you live in this earth. Starting the same early guard you to give huge premium later.

• You have to consider possible risks while saving and investing your money with the focus of retirement plan.

o Inflation: While calculating your future required amount for retire life, you should consider inflation and all the calculation should be fail proof with inflation adjusted numbers.

o Remember your investment in equities and debt instruments should meet the right proportion depends on your age. For example, if you starting the retirement savings and investments at the age of 30, the recommended portfolio proportion is 30 percent of money in the debt instruments and rest 70 percent in equities or equity related instruments. If you are near to the retirement age, say the age of 55, your proportion should be 90 percent in debt instruments and 120 percent in the equities. This calculation is little confusing, here is a well researched article says how this proportion can be achieved.

That’s all for now. There are lots of advices on retirement planning available in the net. You can see the gist of these articles is the same above. Have a well thoughts and related action always. You can have a very realistic and fantastic retirement life. Remember, you can only decide your own destiny.

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