If you think retirement planning is a task to be done in your late 40s then you are absolutely wrong. Planning for your old days from your initial days is very important and that’s where the funda of early investing works. Now the two big questions are
Why to plan for retirement and how to plan to for it?
So, let’s talk about our first question first i.e., Why to plan for retirement. As much as you need your salary and monthly income now probably you will need more in your 60s because with each passing year your responsibilities grow at double pace. To comprehend it simply you will need funds after retirement to meet up your daily expenses, to cover medical expenses, to cope up with the inflation, to meet any specific goal or uncertainties. Life can throw you in any adverse situation on any possible time and rest 2020 has taught us a lot about this. So, to overcome all these uncertainties and expenses you definitely want a handsome surplus by your side.
Let’s jump on to our other concern that what can be a best approach for retirement planning?
We have seen that many fails at accumulating their capital and many prosper too. What makes this difference? Obviously, the time and the amount. Not only early investing will help but with that the amount you are investing makes a huge difference. This doesn’t need any explanation, quoting Warren Buffet_ “Do not save what is left after spending, but spend what is left after saving.” This could be the best possible approach not only for retirement planning but for your whole investing cycle. While at the same time we cannot deny the importance of fulfilling current needs. So maintaining a perfect balance between future requirements and present need can make your investments as easy as pie.
Now let’s talk about some points that we should consider while planning the retirement. First and foremost, point is at what age to get retire, commonly it is 60 but again it is a matter of personal choice, some people wants, early retirement and some work enthuse even wants to work after their 60s. So, deciding the right age and starting investment for it at the right time is very critical. Secondly you should have a clear mindset related to corpus that you are targeting at. Instead of targeting at some vague amount one should do a proper calculation of their expecting expenses considering the inflation factor to set the target amount. You can also use retirement calculator on Investocafe’s website to know the exact amount you need to invest on monthly basis to achieve a particular target.
And if you have a proper planning and dedication you might be able to achieve the target within a time frame. Then keeping the required fund at the safer side and remaining at the high risk to attract better returns will be a reliable variant.
However, it is a very demanding process and we at Investocafe can make it very effortless for you. If you are looking for a financial planner or advisor then you are stuck at a right place. Investocafe is a one stop shop where you can sort your investment plans at the earliest.