Retirement is a bitter-sweet affair for most because, on one hand, it is a culmination of one’s work life, whilst on the other, it typically comes with a bounty that has been saved through the working life of the retiree. The reality of today’s times is that working lives are getting shorter & shorter and we can no longer hope to be gainfully employed till the age of 60, as our earlier generation was. Hence, it is important to ensure that you work towards achieving financial freedom soonest, which will make retirement a peaceful and a welcome event in your life. If you wish to secure a good post-retirement life, now is the time to start planning for it!
Planning for your retirement
Retirement planning is a long-term process and the earlier you start, the better positioned you will be, to deal with it, when you get there. If you do this well, you could give yourself a good chance of deciding when you want to retire, as opposed to your employers doing that. More than your financial standing, it is your financial discipline which plays a crucial role in the planning process. Making the right investment decisions and staying with it is very important to succeed in this endeavor.
Taking the right financial decisions
Mere savings are not sufficient to help you put together a good retirement amount. Your savings should be invested in favorable instruments, based on sound financial advice. If you arent doing this, you are missing out on making the most of profitable opportunities to multiply your savings and achieving financial freedom. The secret sauce is to give your savings the right investment vehicles to grow, and the time to compound this gain.
Factors to consider
If you are not someone who can spend a lot of time in making investment decisions, investing in mutual funds can be a great option, if you choose the right funds. Professional Fund Managers manage the monies received by mutual funds, choosing the right avenues that give your money a great chance to grow exponentially. However, the best way to understand where one should invest is to hire an experienced and sound financial advisor. Times are uncertain, and the markets are dynamic – sometimes, fragile too. That’s why it is a big help to have someone who is well-qualified to deal with this, by your side, through this journey.
Health insurance and Medicare
Medical expenses can increase as you get older, and hence retirement planning should also include medicare and health insurance plans which provide for these. Contrary to popular belief, it is best to take medical insurance early in life, since your age will work in your favor to lower premium costs, and at the same time, you will build a transferable insurance history which will work in your favor, later. With so many plans available in the market, it can get confusing and overwhelming. Your financial advisor, who is planning your retirement, can be a big help here.
Working after retirement
Retirement from work doesn’t mean you stop working. In fact, once the countdown starts, it can get overwhelming to deal with all the free time you will have. It is therefore, important to decide what you wish to do after retirement to keep yourself engaged. In order to ease into your retirement, it helps to ask yourself these questions early on:
- Do you wish to continue working even after retirement? In that case, what would you want to do?
- What are the necessary investments you have to make now, to ensure you have a steady income from them at retirement, which will enable you to lead a comfortable life?
Times are crucial and uncertain. You need to think ahead rather than wait. Visualise the future and then start planning now. The financial freedom that you will give yourself through this will make the process worthwhile, and secure an enjoyable and safe life for you, even when you don’t have that salary credit coming in at the end of the month.