Retirement is an essential part of life, but generally, people don’t think about their retirement life and don’t make any plan for it.
Retirement is less of age, more of money.
If you are confident in your collected corpus, you can retire, age doesn’t matter.
- Estimate expenses of your retirement life and make a realistic plan
- Make a corpus which you will need from the start of your retirement, don’t forget to add inflation and some chunky expense there
- Estimate how much you have
- Follow your planning and have someone to monitor your planning and following
If you think your corpus is enough, take care of inflation, sudden medical expenses, which can eat your dreams away
Complete your retirement planning with the plan of regular passive income which you should get during retirement
Compounding is interest on interest, the longer the period, the higher the effect of compound interest
According to PV Subramanyam, ‘start early, invest regularly, believe in tax-free compounding, you will create wealth
Annuity from the insurance company should also be done to ensure regular flow of money during retirement
You may face some blunders which should be avoided, those are,
- Consuming corpus early
- Stay in confusion how much to save
- Postponing retirement planning
- Asset allocation as per your age
- Letting the tax into your retirement
- Paying too much for your health
- Hoping that your kids will take care of you
- Not looking after future chunky expenses
- Retiring when you need a break