Why don’t people appreciate the importance of retirement planning??
When I speak with faculties and employees at colleges, b-schools, corporates, various institutions I really get scared because of lack of understanding or underestimation of retirement corpus that is required to maintain the current life style of millenials. We are living longer hence our corpus must be sufficient to take care of our expenses for at least 20-25 years post retirement at say 60 years of age.
Following are retirement planning mistakes I have compiled from my little experience as a Financial Planner:
1. Procrastination. People just don’t start planning. Time is money and doesn’t wait for anyone. The sooner you start the amount required to save and invest is lesser.
2. Not engaging a professional advisor. The advice of competent professional does make a difference.
3. Ignoring inflation and tax, they are silent killers.
6. Not maintaining Asset Allocation as per risk profile, financial goals, net worth etc.
7. Not doing periodic re-balancing of Assets as per changing needs and circumstances.
8. Not staying invested and not getting benefitted out of compounding.
9. Underinsured or no insurance – Life and Health.
10. Not planning alternate vocation.
I will sign off with this quote.
“You can be young without money but you cannot be old without it.”- Tennessee Williams
So ladies and gentlemen the question is not at what age I want to retire but it is at what income. Please plant & nurture your retirement plan ASAP. Ideally from the first pay cheque, remember the golden rule of personal finance: “Pay yourself first.”
Happy Investing !!