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Have you planned for your retirement?

Have you planned for your retirement?

YOU may be saying ‘who me? I am too young to be thinking about retirement’. It is not so! Rethink. You should have started thinking about it on Monday, because time flies quickly. If you were smart, and planned for retirement when you are young, your retirement years will be really those golden years.

If not, you need to compromise, work longer years and retire later than others. First of all, why do we keep a wrong notion that the mandatory retirement age for all working class people is 60 or 65 years?

This is because that is how it is practiced in most countries.

Which rule of a country, or for that matter of the world, restricts any human being to retire early? If you can achieve a steady stream of passive income which can sustain you for the next 60 to 70 years to come, then what is wrong in retiring at the age of 30 or 35 years?

Being retired does not mean that you stop working, but what I surely mean is that you stop working on a nine to five cycle, which most of the usual working class follow.

Once retired, one may decide to devote more time in doing some work, which one was interested in doing but could not do earlier due to his busy working schedule.

So attaining retirement means you are the boss of yourself and will take orders purely from self, unlike employment days where half of your actions were determined by the orders of your boss. The above demonstrates that nobody is too young to ignore one’s retirement planning.

However before you start to plan your retirement, you need to answer some hard questions like:

(1) When should I start saving?

(2) How much should I save?

(3) Where should I save for retirement?

(4) How should I invest the money?

(5) How should my strategy change?

(6) How much money [per month] will I need to sustain myself post retirement days?

(7) Will social security be enough? And

(8) What if I can’t save enough? Credible answers to the above questions would automatically pave the way for one’s retirement planning. If you are an avid reader of my weekly column on “Money Matters” then it may not be very difficult for you to frame answers to these question, as one or the other times I remember having addressed most of such issues as listed above.

Retirement planning is not a “rocket science” per say but merely refers to the allocation of financial resources towards one’s retirement. In most cases this simply means setting aside money or other similar assets for the purposes of collecting a living income once you’re past working age.

Financial independence is the goal of retirement planning. Remember, retirement planning is not something that can be done in a day, a week, or even a month. It is not an event but rather a recursive and cyclical process.

The best plans are the ones that provide enough flexibility to allow us to make changes as the need for doing so becomes evident. Investors who wish to reach their retirement goals need to start investing as early as they possibly can.

Getting into the market early gives your investments more time to perform and to earn income for you. Establishing a consistent pattern early on also helps build up the portfolio so that it can better withstand downturns in the market.

A long term investment pattern characterized by consistency means the investor does not have to rely on luck quite as much in order to reach their financial goals. Retirement planning is a whole life strategy that involves lifestyle choices in the present to help finance the future. As we get older the need for discipline in this area becomes more and more apparent.

The wise ones among us are those who take retirement planning seriously while they are still young, giving them a head start unlike some people who believes that - “I am too young to plan my retirement”.

So moral of the story is “start your retirement planning early in life”, else you would repent when you are not so young to handle the vagaries of your post retirement days. Cheers!!!

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Author: Jagjit Singh

1 Comments

  • avatar
    Tommy
    24/05/2022

    Thanks for your sharing about early retirement preparation. I do wish if you could go deep on classes of investments opportunities and how we can benefit from them. I am interested in Real estate investment opportunity but I can't find how could some one use debt to start the real estate investment, please if you can impart the knowledge you have for us. I heard that there is a loophole someone can benefit from that particularly in real estate , Regards.

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