Retirement Planning should be your Most Important Financial Goal

By: hirannya | Tags: | Comments: 2

We all need to and want to plan for our retirement. But, are we ready? Are we going on the right path and investing wisely? Well, these questions are sometimes very daunting and to top it all, we do get a lot of advice from various sources which can be taxing! Retirement plans are very crucial and should begin right from the moment one starts earning. Well, if it is delayed, never mind, there are still ways that can help you save and have a good retired life. But, are you ready for planning or are you still contemplating? One definitely needs to have a defined picture about it as to how and when and then figure out the right plan.

Why retirement planning is important goal

The times are difficult as we all know, and they are going to be difficult once you stop earning that is when you retire. Your expenses are not going to reduce just because  you are retired, or nobody is going to give you that kind of salary due to your age. There is the inflation, the interest rate, health issues, medicines, and the lifestyle that influence the expenses. The life span has increased and with it, there are several issues that need to be tackled. Are you retiring by choice or is it by force? That is if you are a government employee, you will definitely retire when you are around 60 or even less. Maybe you might take up another job, but, of course, the salary will be much less. Is there anyone who can provide you with finances if you truly need them? Do you own a house or live with your children? There are some questions like these that will help you get a clear picture. But, I must say, you must be realistic and think practically. You need a good retirement planning before you retire so that you are ready to retire and have a peaceful life without depending on others for your basic needs.

Points to consider for retirement planning

What is your income?

Whether you are in business or an employee, you still have an income and also expenditure at the age when you cannot work anymore. So calculate and consider if you can save anything from it. How much do you spend? Calculate all this and check how much you can save today and how much you will be spending after retirement and what your expenses will be. Try projecting for around 5-20 years and more which can be impossible to track how much you will need in the future. Taking your present income and the expenses, the savings should be enough to suffice your lifestyle. But, when there is no income, things can be difficult. A plan that includes your income as well as expenses should be chalked out. Think of other expenses that you might need like a vacation, children’s marriage, education, house, car, other expenses like domestic and unknown.

Best retirement planning

The best retirement plan should be a mixed asset plan. Your portfolio should be based on the age of retirement and your income. It varies according to different income scales, and that is why there is no single plan. Every retirement plan is different based on the lifestyle and needs. There are various considerations and investment assets that can help you benefit right from the present day till you retire. The best way is to approach a professional financial planner who can prepare financial plan for you according to your income, expenses, liabilities and also how many years you will be working till you retire.