Nothing is more difficult for an individual to have a successful career and then face a life without a post retirement plan.
Retirement is one of the most important life events many of us will ever experience. From both a personal and financial perspective, realizing a comfortable retirement is an incredibly extensive process that takes sensible planning and years of persistence. Even once it is reached, managing your retirement is an ongoing responsibility that carries well into one's golden years.
While all of us would like to retire comfortably, the complexity and time required in building a successful retirement plan can make the whole process seem nothing short of daunting. However, it can often be done with fewer headaches (and financial pain) than you might think - all it takes is a little homework, an attainable savings and investment plan, and a long-term commitment.
Before we begin discussing how to plan a successful retirement, we need to understand why we need to take our retirement into our own hands in the first place. This may seem like a trivial question, but you might be surprised to learn that the key components of retirement planning run contrary to popular belief about the best way to save for the future. Further, proper implementation of those key components is essential in guaranteeing a financially secure retirement.
Retirement planning is the process of undertaking financial planning to provide for the period post retirement. It is a process of saving and building a corpus invested in various asset classes that will result in income and earning.
In normal circumstances most of us will stop receiving the monthly incomes when we retire. However the need for money for various expenses does not cease. Planning for this situation so that it ensures a smooth roll over by raising the required income will constitute retirement planning. This involves looking at each possible source of retirement income.
Highlights of Retirement Planning:
1. There is planning to provide for the later years
2. There will be no income from regular work
3. A corpus has to be built up to provide the income in the years post retirement
4. It involves selecting various investment avenues
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