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If You Haven’t Started Retirement Planning Already, You Should!

One of the most neglected subjects amongst the investors is the retirement planning. More shocking and distressing is the fact that most of the investors/people don't even look at it as an important issue. In a way, there is a grave lack of awareness about retirement planning in India. The reason being, in India, there is a great divide between government employees and private employees. The government employees, after their service, get secured retirement thanks to pension and government's health care. Hence, they are a little indifferent towards retirement and healthcare planning. However, employees of the private sector, despite lack of resources, display the same disdain towards retirement planning and financial planning on the whole.

 

First and foremost, we need to get the concept of retirement planning right. Retirement planning is not merely getting minimum wage every month. It's about planning is such a way that you live and enjoy your life exactly as you did while you were working. In other terms, its aim is to get you the income which will be well over the inflation rate.

 

How To Plan For Your Retirement?

 

One of the biggest complaints people have is that money just comes in and goes out, and they just can't make any plans or provisions for it. That’s true, that’s the very reason you have to make conscious efforts to save and invest. People of varied paygrade face the similar issue. The reason being - lack of money management. Money management simply means tightening the screws of your budget as to prevent needless spendings and cash slippages. It also helps you identify your financial goals and gives you an estimate of the funds required and allocation of funds in the right investment instruments.

 

To get a sense of your financials needs, here are 2 important things that you need to do.

 

  1. Set Your Financial Goals - One of the principal characteristics of money management is that it gives total clarity about your financial goals. From setting short-term goals like saving for a family vacation or buying a new car to long-term goals like children's education and most importantly - retirement planning. All your financial goals can get sufficient funds and time if you manage your money wisely.

 

  1. Decreasing Your Liabilities - Your net worth is your total assets - total liabilities. If your assets (movable and immovable) are hardly more than your liabilities, it means you are only managing to keep your head above the water. Liabilities are the big hindrance on the road to wealth creation. In the long-term, it helps if you can chalk out a payment plan to speedily reduce your debts.

 

Seek The Expert Advice

 

Retirement planning is extremely important. One has to be cautious and patient while making all the provisions for retirement planning. As there is little margin of error, it is important that you have to hit the mark in all the decisions you make and get full advantage of  the long period of time at your disposal. Hence, instead of taking up the hard task of juggling between all the financial instruments yourself, it is better if you seek help from professional financial planners or wealth managers. Like clothes have to be stitched to the measurement an individual, retirement planning has to be done taking into account the needs of an individual. From setting up the buckets for all your goals, a professional financial advisor can also help you strike a perfect balancing in your portfolio. Spending a little on expert advice will give a big boost to your retirement planning and your investment strategy on the whole.

 

 

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Comments 3

Aryan Sharma on Friday, 24 November 2017 13:19

It Depends upon your Age, eg.. if you are 20 then you can have more allocation towards riskier asset classes eg.. Direct Equity, in Late Thirties you can increase weightage in Mutual Funds and at 50 increase weight age towards Debt.
Real Estate if you are living in it or using it, its not an asset as per me.

Niveza is Right you need to consult with a Financial Planner and set your goals, he would be able to help better.

It Depends upon your Age, eg.. if you are 20 then you can have more allocation towards riskier asset classes eg.. Direct Equity, in Late Thirties you can increase weightage in Mutual Funds and at 50 increase weight age towards Debt. Real Estate if you are living in it or using it, its not an asset as per me. Niveza is Right you need to consult with a Financial Planner and set your goals, he would be able to help better.
Guest - Rajesh on Tuesday, 21 November 2017 23:35

Nice article
How much percentage should go where for retirement. Gold, equity, mutual fund, real estate etc,?

Nice article How much percentage should go where for retirement. Gold, equity, mutual fund, real estate etc,?
Niveza India on Thursday, 23 November 2017 16:33

The percent of asset allocation varies from person to person as every individual has different financial requirements. A financial planner can help you set your financial goals and also with the selection of right investment instruments.
Do read our http://bit.ly/2jSskbd

The percent of asset allocation varies from person to person as every individual has different financial requirements. A financial planner can help you set your financial goals and also with the selection of right investment instruments. Do read our http://bit.ly/2jSskbd
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