Strategic Retirement Planning
No one is age proof and it shall come whiteout knocking on your door. If you want a care free retirement start saving now.
Saving is a good habit and if the early you cultivate it the better it will be. As they rightly say “Anything that we can do to raise personal savings is very much in the interest of this country as well”
To Spend or Not To: A part of the lesson is to start saving as early as possible. In fact, it is common knowledge and old wisdom that says it is better to buy insurance when you do not need it because no one will give it you when you need it the most. The same holds true in the case of retirement planning. Normally, young people do not care to bother about the question of retirement since they feel that it is a question that should bother the people who are past their prime. However, it is advisable to put away a part of one’s allowances or income for this very purpose.
In a recent study, it was found that a person aged 25 needs to save a measly $85 a month to have a corpus of $1 million when he reaches the age of 60. Postponing that can cause the same person to put away $286 per month when he reaches the mid thirties. $1000 a month if he starts thinking of saving for that aim at 45. And a whopping $4,350 a month when he reaches 55 years of age.
Milestones In The Financial Journey
The Thundering Twenties: This is the age when many young people have the spirit of adventure in them. Life seems to be one big party, interspersed with education and an occasional trip down the wrong lane for the sake of adventure. However, it is advised that while they are on the trip of a lifetime, they are well advised to put away a miserly figure of $3 a day, which can total to more than the $85 calculated above.
The Tumultuous Thirties: At this juncture, people have finished their education, have had jobs, fall in love and marry. In the next decade they are faced with the prospects of raising a family, getting their act together with not just their own bills but also the family’s expenditures to take care of. In spite of increased salaries and a possible double income scenario, it could get difficult if the regularity of savings is not maintained.
Formidable Forties: One can call the forties formidable only when the planning and implementation of the earlier two decades has been set in concrete. This is the age when children’s fees and other expenses have to be well taken care of. Further education also takes the position of top priority, this giving the planning for retirement a shove in the ribs and relegating it to the back benches.
Afterthought: When these three decades are well planned and settled, one can then be rest assured of the years that follow. However, putting off things till the last minute can take a toll on the physical, mental as well as the financial health of the household.