Tomorrow Never Comes
Tomorrow Never Comes
Being a part of the financial industry since 2003, we have met a lot of clients who have no clarity for their financial needs and future financial plans. The biggest problems are with the upper-middle class and middle-class segment of society, wherein they always conveniently postpone financial planning up to the age of 38-40 Years. At this age, it is not financial planning but rather it becomes crisis financial planning. Financial planning is a stepwise process but where we lack is a thought on financial planning. You may or may not want to look forward to future expenses but an individual cannot deny the fact of “Retirement “. Retirement is the real aspect of working life which is certainly bound to happen. But Major of us, avoid any planning for this purpose or delay it for unnecessary reasons.
We have to understand; often life won’t work out the way you planned. And if it doesn’t, you’ll put yourself and your family in a less than ideal situation. The best way to do that is to plan for retirement. Chances are, you don’t plan to work until the day you die. You may have even envisioned your dream retirement, sipping cocktails on a beach, on a porch in a cozy mountain retreat, or off traveling the world. But it actually takes careful financial planning for these dreams to be realized.
We have to understand a fact that till the time we are earning, all expenses can be planned and somehow here and there we can match them but once you are retired your financial dependency comes on the corpus you built-in working years. Now you have 2 options, either you built a corpus by saving while you earn or saving while earning with investing that money in those instruments which can help you in generating a decent return over your corpus. If a built-up corpus, not invested properly, it becomes dead money with the value of that money eaten up by inflation.
In this article, we give 7 reasons for which one should build retirement corpus:
1. The Average Life Expectancy Continues to Rise: The first reason you need to kick-start your retirement planning is the simple fact that people are now, on average, living longer than ever before. A longer life means you’ll need more retirement funds saved to continue to live off. With the average Indian lifespan creeping up toward 80 years old, it’s easy to see that you’ll need a substantial sum to live comfortably in your retirement.
2. You Can’t Work Forever: You might be defiant and think you can work until the day you drop, and for some, that maybe the dream, but the fact is you can’t perform your profession at a high level for your entire life. As you age, you’re going to slow down and certain tasks will become more difficult. No matter how much you want to keep working for your entire life, it is no excuse to not save for retirement. Having that money handy prepares you in case you retire earlier than anticipated. Without a retirement fund to fall back on, you’ll be stuck in your “work forever” plan.
3. Your Future May Have More Financial Obstacles than Your Past or Present: It’s important to realize that you may indeed experience financial hardships in the future. People are often optimistic about their financial future, living with the faith that things will be better in the years to come, but it’s not something you can bank on. Your future is not guaranteed, which is why retirement planning is necessary, and once you have a plan in place – stick to it. If you run into trouble later in your life, you’ll have to try as hard as you can to resist the temptation to dip into your retirement savings, although it will be there as a safety net if you need it. Keep in mind, there are sometimes penalties for withdrawing your retirement funds, and you will want to save them for your actual retirement.
4. Relying on mediclaim plans Is Risky: We as Indians are not entitled to any type of social security from the government. Whatever retirement funds need to be built that has to be built by us only. Medical expenses can be taken care of by insurance plans but at retirement age, those are very expensive. Certainly, in the later stage of life, we will require a higher need for the medical facility. You need to have extra surplus funds for those requirements. Proper retirement planning is necessary in the event you need to cover any long-term care that you may require later in your life. Mediclaim may not cover every form of care, so your retirement savings may become your safety net to pay for in-home care or a nursing facility.
5. It’s Unfair to Depend upon Your Family: On the other side of the coin, imagine your future with your family if you didn’t see the value in planning for retirement. It would then become your children’s responsibility to take care of you. In your retirement, you shouldn’t be dependent on anyone, let alone your own family. Having a firm plan in place will make sure you don’t become a financial burden on those you love the most. You want to be in a position to help out a family member’s financial situation, not make things worse.
6. You Always Have Enough Money to Save For Retirement: If your immediate reaction to this section was “No, I don’t,” we’re here to tell you that yes you do! While we understand that everyone’s financial circumstances are different, you do have enough to save for retirement. Let us show you how.
When your finances are in rough shape and you’re struggling to make ends meet, it might not appear that you have any money to put aside for retirement. Where is this extra money going to magically come from? The thing is, you already have it, and you just need to change your mindset.
If you can make saving money to help plan for your retirement a priority, you’ll be able to see that you do indeed have some extra funds to build a pleasant future, no matter how dire things seem. Saving money is a challenge for some more than others, but it’s always much more of a mind game than a number game. As long as the end result of having a comfortable retirement is of high importance to you, you’ll find a way to save to make it happen.
Another common barrier is time, but to that, we have the same answer: you have it. As long as you prioritize your retirement, you will take the time to set forth a plan for your future, and become motivated to stick to it.
7. Why is Retirement Planning Important Today? That’s right — today. Not tomorrow. It’s incredibly vital that you start planning for retirement early. You’ll put yourself in the best situation if you start planning for retirement early on. Accumulating the funds you need for a comfortable retirement may take decades, depending on your income, and you’ll want as large of a nest egg as possible when you are no longer bringing in a salary. By starting to invest in your retirement early on in your career, your funds will accumulate and grow over time, leaving you with a substantial enough fund to fulfill your retirement dreams.
The best news is it is never too early to plan for your life after you’ve finished your career. Now that you realize the importance of retirement planning, you can start developing your retirement plan today.
In the Indian financial market, you can find many products that may suit your retirement planning needs. But you need to choose the right asset allocation, with the right product mix. Diversifying funds is not only the criteria but managing those funds ideally is a bit tough task. For e.g. in early stages, you need those products which may fetch higher returns with high volatility because your age and your earning capacity will allow you to take a risk but in the later stage, you may require those assets class wherein you can secure your principal and returns accumulated in early phase.
How Moneymatters can help you!
We are a Group of minds which helps its clientele in achieving improved returns from conventional, rather un-predictable and multifaceted financial products. Our decade-plus experience on financial markets, considered to be simple, though quite complex, revolves around fundamental principle that if one plans and adopts a timely and focused approach towards their investments and choose the right mix of investment products, then one can certainly attain superior results in terms of Return on their Investments viz-a-viz benchmark products. We pick, choose and recommend various investments strategies and this - our expertise – has helped us service and retain our diversified set of Clients, be it HNI, Ultra HNI, and Retail Clients, to their satisfaction.
Our endeavor remains and always revolves around building and maintaining long term mutually rewarding relationship and hence our Clients are proposed with strategies which suit their expectation alone. Wealth Management or Financial Planning at Moneymatters, as one may alternatively say, is uniquely based on the Client’s profile, his/her financial Goals considering the preferred and advised Risk parameters, depending upon Client’s age, returns expectation, time-frame, etc.
Our product basket has numerous products to offer, which provide Clients with better selection options based on his/her needs, backed by research and Client’s risk appetite. Our product selection is based on the following parameters: Quality, goodwill, and Cost of Product, Consistency and Risk associated with the product, future expectation of returns from product-based on various financial readings and formulae.
Moneymatters don’t follow the conventional concept of product-driven advisory. Rather, our team offers Research-based products to all its clients so that his/her selection is uniquely positioned and priorities are well-taken care of. NEED BASED SERVICE is our core MANTRA which is not-compromised and is uniformly adhered to by all Employees without any exception. We strongly focus on Client satisfaction, his/her wealth creation and Client retention is the reward that we have managed to attain basis this focus and effort. This practice has helped our teams to remain grounded and on toes and abreast with market dynamics all the time. In fact, satisfied and Happy Clients have taken us thus far and their expectations have brought out the best from our team. We continue to grow with our Clients and we sincerely wish, if given a chance, we shall give our best to prove trustworthy of garnering a new fruitful relationship.
Let’s build retirement Corpus together & Enjoy happy retirement life!
Visit us : www.moneymatters.co.in
Disclaimer: Mutual funds are subject to market risk. Kind read scheme related documents carefully before investing. Moneymatters and Its employees or directors don’t guarantee any return. All shown returns are tentative in nature. These are not guaranteed to anyone or investor in any nature.