Friday, September 21, 2012

Secure your future with retirement plans

Retirement is one of the toughest decisions to make in life. There’s always some greed of working a couple of months extra in order to accumulate a little more cash and there’s always a fear whether they amount of money you’ve saved after working endlessly for decades will last you your entire retired life! But trust us, with proper planning and a positive attitude, the money you’ve saved after working hard and burning yourself daily for decades will definitely prove its merit and last you your entire life. Here are a few tips that can help you with your retirementplanning .

·         Brush up your basics: You should pick up newspapers daily and read up the financial sections. Papers have a specialized column dedicated to latest developments in the field of investments, mutual funds etc. You need to study them well in order to be abreast with the latest developments. Unless you’re clear with the basics, you cannot go a long way with your retirement planning. Also, keep one thing in mind that your retirement income in usually 65-70% of the money you earn when you’re well settled. After retirement, your life will sober down a bit as compared to your heydays.
·         Keep a track of your present income: Most professionals don’t keep a track of their money. They don’t have an account sheet where they can note down the money they’ve spent the loans you’ve given or have borrowed. This will help you to effectively plan out a data chart showing whether your expenses are going towards needs or wants! This will give you a realistic figure of the amount you can save every month so as to decide the best retirement plan in India for you.


·         Calculate your future position: There are various factors which we are dependent on for our future. It might be our children, our social security benefit and so on. But assess them carefully and evaluate the kind of benefits you stand to receive in your future. We’re not talking about your children here but rather, plans like social security benefits. Aren’t plans like social security dwindling? If not, what’s their scope in near future? Such questions need to be answered for building an effective wealthmanagement plan for future.

·         Forecast future expenses: This is what we are looking at majorly. You need to forecast your future expenses to see how much money you’ll spend each month. To best way to calculate is to keep on noting down your daily expenses that take place right since the time your day starts till the time it ends. You’ll have an amazing idea of how much you spend on auto/taxi, how much on outside food, how much on other wants which are now unavoidable. Even if you go to the best of wealth management companies in India, they’ll suggest you the same.
·         Start investing! : After you’ve carefully evaluated all pros and cons, it is time to start investing! Start investing a portion of your salary for your future.