The When and How of Retirement planning

Retirement planning can be challenging at times for many.

Here are 3 simple steps that will throw light on when and how you should get started.

Assess your current situation:

To understand when to start your retirement planning, it’s important to first assess exactly where you stand today.

It’s best to start as early as your first pay check. That would be ideal.

If for some reason you have not yet done much, it’s never too late.

Simply start by adding up all the funds/capital in any form you have earmarked for retirement.

Avoid including contingency funds or amounts set aside for big ticket expenses.

Just do it on a spreadsheet or pen it down on paper. Start now.

Retirement spending needs:

Have realistic expectations of what you will be spending on post-retirement.

Many people feel their expenses will fall relatively as they entire retirement phase.

This may really not be the case as there could be a sudden splurge on pent up

wants that you waited for year or unexpected medical expenses.

Travel expenses may increase as you may have waited for retirement to globe trot.

Such expenses bring a strain on your retirement corpus.

A practical approach is to understand your life style today and extrapolate it to your retirement age.

This would be base. Then add up the estimated and expected spends at your retirement age.

This will give a fair idea of the amount of money needed at retirement.

As the goal for the corpus is set you can plan towards achieving it with correct planning and asset allocation.

You can have a fun comfortable and secure retirement if you start thinking in the right direction today.

Confront any shortfalls:

If you have followed step 1 and step 2 above. You know how much you have.

You know how much you need. The difference could be a shortfall. It’s ok.

If you are falling behind, its time to give a close look at what you need to do.

If you are in an earning phase then it will easier to bridge the gap.

Meaningful changes can be made. Increased savings.

Reduction in unnecessary expenditures and debt. Get healthy.

All this can easily get you on track and pick up the pace to ensure your retirement targets are met.

The key is planning and asset allocation. This need expertise. Money management is a niche area.

A good planner will help in creating a risk-appropriate asset allocation and consistent

monitoring of your retirement portfolio.

The time-horizon is key in wealth creation and retirement planning.

Here long term really matters. The earlier you start the better it is.

It’s better to tighten your belt now rather than in your retirement phase.

All you have to do is reach out.

Being a retirement strategist with over a decade of experience let’s partner to ensure

you have a comfortable financial cushion to fall back on when you retire.