1) Planning for retirement early is important to ensure adequate financial support for one's golden years and maintain a desired standard of living after leaving the workforce.
2) Starting retirement savings early with small monthly amounts allows time for funds to grow substantially to meet future needs.
3) Using the replacement ratio method, one can estimate the monthly or annual income needed in retirement as a percentage of pre-retirement earnings and then calculate how much needs to be saved each month to achieve that target income level over the savings period. Starting savings earlier dramatically reduces the required monthly amount.
Palm leaf portal from Gopast was launched on April 14th 2014, and has got subscribers both from within India and outside as well. The main usage has been on "Ask RG" menu where people ask me questions related to Financial planning, Wealth management, Retirement, Motivation, Leadership etc and the next most used menu is "My Resources"
Retirement Planning is one of most important part of everyone's life. But most of them ignore this very important thing. Early retirement planning gives you the power to choose the age when you will retire. FinAtoZ gives you the retirement calculator which is an early retirement planner and gives you the idea about the final corpus you need at the time of retirement along with the correct retirement age.
I am glad that our small quarterly magazine "Life-A Promise" has published on time. The extraordinary achievements of the children always motivated me. I am proud to be able to highlight the achievements of some of the children of Shillong in this issue.. Everbloom K. Nongrum, Miss Bipasha Dhar, Master Arman Sharma, Master Saruya Kanuar, Miss Debashmita Chakraborty these five little children has done extraordinary jobs in their respective field. This issue is the witness of their achievements. Our Best Wishes to these little kids. Gopinath Sir's wonderful article is like a gift to us. We must read again and again "Why Discipline savings is always ahead than financial intelligence". With your good wishes and love, I will go ahead with something new again. Thank you all.
Our quarterly magazine "LIfe-A Promise" has blossomed in a new way. It is only with your blessings that we have been able to republish this magazine amidst the sweet fragrance of festivals. Thank you all. I would urge everyone to read Gopinath Sir's article. We are very happy to be able to print beautiful writings of the youngest students of Shillong. We need blessings from all our readers and well wishers
Palm leaf portal from Gopast was launched on April 14th 2014, and has got subscribers both from within India and outside as well. The main usage has been on "Ask RG" menu where people ask me questions related to Financial planning, Wealth management, Retirement, Motivation, Leadership etc and the next most used menu is "My Resources"
Retirement Planning is one of most important part of everyone's life. But most of them ignore this very important thing. Early retirement planning gives you the power to choose the age when you will retire. FinAtoZ gives you the retirement calculator which is an early retirement planner and gives you the idea about the final corpus you need at the time of retirement along with the correct retirement age.
I am glad that our small quarterly magazine "Life-A Promise" has published on time. The extraordinary achievements of the children always motivated me. I am proud to be able to highlight the achievements of some of the children of Shillong in this issue.. Everbloom K. Nongrum, Miss Bipasha Dhar, Master Arman Sharma, Master Saruya Kanuar, Miss Debashmita Chakraborty these five little children has done extraordinary jobs in their respective field. This issue is the witness of their achievements. Our Best Wishes to these little kids. Gopinath Sir's wonderful article is like a gift to us. We must read again and again "Why Discipline savings is always ahead than financial intelligence". With your good wishes and love, I will go ahead with something new again. Thank you all.
Our quarterly magazine "LIfe-A Promise" has blossomed in a new way. It is only with your blessings that we have been able to republish this magazine amidst the sweet fragrance of festivals. Thank you all. I would urge everyone to read Gopinath Sir's article. We are very happy to be able to print beautiful writings of the youngest students of Shillong. We need blessings from all our readers and well wishers
There is a Saying, “ IF YOU FAIL TO PLAN, YOU PLAN TO FAIL” .. i.e. “If you fail to plan, you are planning to fail.”Finance is a very integral part of our lives. We work hard all throughout, fulfilling wishes like buying a house, going on a dream vacation, children’s marriage, child’s education and much more. But all the hard work will not have any significance if one doesn’t make a proper Goal plan for their future. A proper plan of investments Mix that will give good yields at proper time is a must for everyone.
Planning for retirement is not as easy as it seems. Simply because you have to estimate your expenses 30 - 35 years hence in today's money. This visual presentation provides an overview of how to approach your retirement planning.
House magazine for the associates of Gopast. This is the eighteenth quarterly issue. Inscriptions made on stone seldom fade, this is the core of the tag line of this magazine. Truth Stays Forever. This magazine will be of interest for people engaged in the financial services industry
Retirement is one of the most important life’s event many of us will ever experience. From both personal and financial perspective, realizing a comfortable retirement is an incredibly extensive process that takes sensible planning and years of persistence. visit https://www.financialhospital.in/retirement-planning.php to know more
Financial Planning is a long term process through which you can achieve your financial goals. We at Financial Hospital bring to you a presentation to help you understand the basics of having a healthy and planned financial future.
Retirement planning is using your earnings to provide income, after you retire from work. Start planning for retirement now. We can help you use your savings today, to live a comfortable life tomorrow.
OUR NEWSLETTER FOR AUGUST, 2021 IS ON STANDS. THIS NEWSLETTER MAGAZINE GOOD IDEA TO PLAN FOR FINANCIAL WELL BEING. THIS MAGAZINE ADDS VALUE TO ALL READERS !! THIS MAGAZINE IS COMPLIMENTARY TO ALL READERS !!
Why Retirement plan ( Things to remember while planning for retirement )Singharoy Investment
Retirement is the time when you would like to spend your days doing what you love — travel, live in the farm house, start a poultry farm, restaurant etc. However, I have come across many people who are not very comfortable about retirement thinking that their regular income will then become irregular.
Retirement is the time when you would like to spend your days doing what you love — travel, live in the farm house, start a poultry farm, restaurant etc. However, I have come across many people who are not very comfortable about retirement thinking that their regular income will then become irregular.
Starting early helps save more
It's good if you start planning your finances early – your financial commitments are likely to be fewer, and hence you can salt away more. Planning at the early years of your career also helps compound the corpus many times by the time you retire.
Things to remember while planning for retirement
1: Decide how much income you require to live comfortably in your post-retirement years. Consider aspects like increased medical costs, vacations but reduce costs like children's education and rent, if you own your home. You must map this income on basis of your current lifestyle.
2: Determine how much you need to save regularly, starting today, to have the right amount. Start allocating as much as you can towards your retirement kitty. In case you are currently not in a position to set apart the funds required, start with whatever is at your disposal.
3: Select the right retirement plan, which will help you meet your post-retirement requirements.
4: Start saving now! Then you will have time on your side and can enjoy the power of compounding.
5: Systematically invest a fixed amount every month for your post-retirement years and lead a tension free healthy retirement.
Not only is retirement planning an essential aspect of one's overall financial planning exercise but is also crucial to be commenced early in life. One must always remember that systematic and early retirement planning can help you reduce your financial burden incurred during the post retirement years and help you plan for a carefree and financially secured post retirement life today.
OUR JUNE, 2021, NEWSLETTER FOR AVID INVESTORS IS ON THE STANDS FOR JULY,2021 (ISSUE JUNE,2021). WOMEN AS INVESTORS IN OUR DOMESTIC MARKET. APART FROM OUR DOMESTIC MARKET INDICATORS, WE ALSO DEALT ON US MARKET AND EXTREMELY GOOD PERFORMANCE IN THE MONTH OF JUNE,2021. WE ALSO COVERED ON WOMEN, AS INVESTORS, WHOSE PARTICIPATION LEVEL IS GROWING YEAR ON YEAR. HOST OF ISSUES, WHICH SHOULD BE OF INTEREST TO ALL AVID INVESTORS, DON'T NOT MISS READING THIS JUNE, 2021 NEWSLETTER !! HAPPY SURFING !
The reality is there is no link between what you earn and how well you manage your money. That is good news for everybody. It simply means that regardless of our earning levels, we can all learn good money management habits and we can all aspire to a good level of financial security. Indeed, we can do more than just aspire; we can actually do something to achieve that financial security during our lifetimes.
There is a Saying, “ IF YOU FAIL TO PLAN, YOU PLAN TO FAIL” .. i.e. “If you fail to plan, you are planning to fail.”Finance is a very integral part of our lives. We work hard all throughout, fulfilling wishes like buying a house, going on a dream vacation, children’s marriage, child’s education and much more. But all the hard work will not have any significance if one doesn’t make a proper Goal plan for their future. A proper plan of investments Mix that will give good yields at proper time is a must for everyone.
Planning for retirement is not as easy as it seems. Simply because you have to estimate your expenses 30 - 35 years hence in today's money. This visual presentation provides an overview of how to approach your retirement planning.
House magazine for the associates of Gopast. This is the eighteenth quarterly issue. Inscriptions made on stone seldom fade, this is the core of the tag line of this magazine. Truth Stays Forever. This magazine will be of interest for people engaged in the financial services industry
Retirement is one of the most important life’s event many of us will ever experience. From both personal and financial perspective, realizing a comfortable retirement is an incredibly extensive process that takes sensible planning and years of persistence. visit https://www.financialhospital.in/retirement-planning.php to know more
Financial Planning is a long term process through which you can achieve your financial goals. We at Financial Hospital bring to you a presentation to help you understand the basics of having a healthy and planned financial future.
Retirement planning is using your earnings to provide income, after you retire from work. Start planning for retirement now. We can help you use your savings today, to live a comfortable life tomorrow.
OUR NEWSLETTER FOR AUGUST, 2021 IS ON STANDS. THIS NEWSLETTER MAGAZINE GOOD IDEA TO PLAN FOR FINANCIAL WELL BEING. THIS MAGAZINE ADDS VALUE TO ALL READERS !! THIS MAGAZINE IS COMPLIMENTARY TO ALL READERS !!
Why Retirement plan ( Things to remember while planning for retirement )Singharoy Investment
Retirement is the time when you would like to spend your days doing what you love — travel, live in the farm house, start a poultry farm, restaurant etc. However, I have come across many people who are not very comfortable about retirement thinking that their regular income will then become irregular.
Retirement is the time when you would like to spend your days doing what you love — travel, live in the farm house, start a poultry farm, restaurant etc. However, I have come across many people who are not very comfortable about retirement thinking that their regular income will then become irregular.
Starting early helps save more
It's good if you start planning your finances early – your financial commitments are likely to be fewer, and hence you can salt away more. Planning at the early years of your career also helps compound the corpus many times by the time you retire.
Things to remember while planning for retirement
1: Decide how much income you require to live comfortably in your post-retirement years. Consider aspects like increased medical costs, vacations but reduce costs like children's education and rent, if you own your home. You must map this income on basis of your current lifestyle.
2: Determine how much you need to save regularly, starting today, to have the right amount. Start allocating as much as you can towards your retirement kitty. In case you are currently not in a position to set apart the funds required, start with whatever is at your disposal.
3: Select the right retirement plan, which will help you meet your post-retirement requirements.
4: Start saving now! Then you will have time on your side and can enjoy the power of compounding.
5: Systematically invest a fixed amount every month for your post-retirement years and lead a tension free healthy retirement.
Not only is retirement planning an essential aspect of one's overall financial planning exercise but is also crucial to be commenced early in life. One must always remember that systematic and early retirement planning can help you reduce your financial burden incurred during the post retirement years and help you plan for a carefree and financially secured post retirement life today.
OUR JUNE, 2021, NEWSLETTER FOR AVID INVESTORS IS ON THE STANDS FOR JULY,2021 (ISSUE JUNE,2021). WOMEN AS INVESTORS IN OUR DOMESTIC MARKET. APART FROM OUR DOMESTIC MARKET INDICATORS, WE ALSO DEALT ON US MARKET AND EXTREMELY GOOD PERFORMANCE IN THE MONTH OF JUNE,2021. WE ALSO COVERED ON WOMEN, AS INVESTORS, WHOSE PARTICIPATION LEVEL IS GROWING YEAR ON YEAR. HOST OF ISSUES, WHICH SHOULD BE OF INTEREST TO ALL AVID INVESTORS, DON'T NOT MISS READING THIS JUNE, 2021 NEWSLETTER !! HAPPY SURFING !
The reality is there is no link between what you earn and how well you manage your money. That is good news for everybody. It simply means that regardless of our earning levels, we can all learn good money management habits and we can all aspire to a good level of financial security. Indeed, we can do more than just aspire; we can actually do something to achieve that financial security during our lifetimes.
17 Retirement and Estate PlanningYOU MUST BE KIDDING, RIGHT.docxherminaprocter
17 Retirement and Estate Planning
YOU MUST BE KIDDING, RIGHT?
Rachel Jones is 27 years old, and she recently took a new job. Rachel had accumulated $6000 in her previous employer's 401(k) retirement plan, and she withdrew it to help pay for her wedding. How much less money will Rachel have at retirement at age 67 if she could have earned 8 percent on the $6000?
A. $6000
B. $24,000
C. $96,000
D. $130,000
The answer is D. Spending retirement money for discretionary purposes, instead of keeping it in a tax-deferred account where it can compound for many years, is unwise. The lesson is to keep your retirement money where it belongs!
LEARNING OBJECTIVES
After reading this chapter, you should be able to:
Estimate your Social Security retirement income benefit.
Calculate the amount you must save for retirement in today's dollars.
Distinguish among the types of employersponsored tax-sheltered retirement plans.
Explain the various types of personally established tax-sheltered retirement accounts.
Describe how to avoid penalties and make your retirement money last.
Plan for the distribution of your estate and, if needed, use trusts to lower estate taxes.
WHAT DO YOU RECOMMEND?
Juliana Pérez Rodríguez, age 48, worked for a previous employer for eight years. When she left that job, Juliana left her retirement money in that employer's definedcontribution plan. It is now worth $120,000. After getting divorced and remarried four years ago, she has been working as an assistant food services manager for a convention center in Chicago, earning $70,000 per year. Juliana contributes $233 each month (4 percent of her salary) to her account in her employer's 401(k) retirement plan. Her employer provides a 100 percent match for the first 4 percent of Juliana's salary contributions. Company rules allow her to contribute a total of 8 percent on her own. Juliana's 401(k) account balance at her new employer is $21,000. Her husband Fernando, with whom she shares the same birthday, is a computer programmer working on contract for various companies and earns about $90,000 annually. When Juliana returned from a vacation with her husband, she found that her father had suffered a serious stroke. Despite undergoing physical therapy, he is now in a nursing home and likely will be there the rest of his life. Juliana is hoping that she and Fernando can retire when they both are age 65.
What do you recommend to Juliana and Fernando on the subject of retirement and estate planning regarding:
1.How much in Social Security benefits can each expect to receive?
2.How much do they each need to save for retirement if they want to spend at a lifestyle of 80 percent of their current living expenses?
3.In which types of retirement plans might Fernando invest for retirement?
4.What withdrawal rate might they use to avoid running out of money during retirement?
5.What three types of actions might they take to go about transferring their assets by contract to avoid probate?
YOUR NEXT .
17 Retirement and Estate PlanningYOU MUST BE KIDDING, RIGHT.docxaulasnilda
17 Retirement and Estate Planning
YOU MUST BE KIDDING, RIGHT?
Rachel Jones is 27 years old, and she recently took a new job. Rachel had accumulated $6000 in her previous employer's 401(k) retirement plan, and she withdrew it to help pay for her wedding. How much less money will Rachel have at retirement at age 67 if she could have earned 8 percent on the $6000?
A. $6000
B. $24,000
C. $96,000
D. $130,000
The answer is D. Spending retirement money for discretionary purposes, instead of keeping it in a tax-deferred account where it can compound for many years, is unwise. The lesson is to keep your retirement money where it belongs!
LEARNING OBJECTIVES
After reading this chapter, you should be able to:
Estimate your Social Security retirement income benefit.
Calculate the amount you must save for retirement in today's dollars.
Distinguish among the types of employersponsored tax-sheltered retirement plans.
Explain the various types of personally established tax-sheltered retirement accounts.
Describe how to avoid penalties and make your retirement money last.
Plan for the distribution of your estate and, if needed, use trusts to lower estate taxes.
WHAT DO YOU RECOMMEND?
Juliana Pérez Rodríguez, age 48, worked for a previous employer for eight years. When she left that job, Juliana left her retirement money in that employer's definedcontribution plan. It is now worth $120,000. After getting divorced and remarried four years ago, she has been working as an assistant food services manager for a convention center in Chicago, earning $70,000 per year. Juliana contributes $233 each month (4 percent of her salary) to her account in her employer's 401(k) retirement plan. Her employer provides a 100 percent match for the first 4 percent of Juliana's salary contributions. Company rules allow her to contribute a total of 8 percent on her own. Juliana's 401(k) account balance at her new employer is $21,000. Her husband Fernando, with whom she shares the same birthday, is a computer programmer working on contract for various companies and earns about $90,000 annually. When Juliana returned from a vacation with her husband, she found that her father had suffered a serious stroke. Despite undergoing physical therapy, he is now in a nursing home and likely will be there the rest of his life. Juliana is hoping that she and Fernando can retire when they both are age 65.
What do you recommend to Juliana and Fernando on the subject of retirement and estate planning regarding:
1.How much in Social Security benefits can each expect to receive?
2.How much do they each need to save for retirement if they want to spend at a lifestyle of 80 percent of their current living expenses?
3.In which types of retirement plans might Fernando invest for retirement?
4.What withdrawal rate might they use to avoid running out of money during retirement?
5.What three types of actions might they take to go about transferring their assets by contract to avoid probate?
YOUR NEXT ...
http://ekinsurance.com/financial/retirement/
If you are near retirement or have retired, listed below are several common mistakes that occur in the arena of financial planning for retirement that you can plan now to avoid.
Inscriptions is our house magazine meant for our associates. In this issue we Discuss about "Make the impossible; possible", Play by the rules and be rewarded, The journey of money, Retirement planning and we are proud to be associated with a Yogasana wonder
Inscriptions is our house magazine meant for our associates. In this issue we Discuss about "Make the impossible; possible", The amendments made to sec 10(10D) and the suitability of Life Insurance Endowment type products, Partnership insurance, Estate planning and we are proud to be associated with a sports person and a gold medalist
This is a house Magazine of Gopast for circulation amongst its associates. Habits: changing the old ones and creating new ones under the Coping up skills, Islamic Financing and Takaful Insurance also Debt to income ratio of a family articles by Mr R Gopinath. Mr Ajay Tyagi about Risk management and Mr Ankur Shah about SVB collapse and Three children achievements covered in the Proud to be associated space
This is a house Magazine of Gopast for circulation amongst its associates. Coping up skills by Mr R Gopinath, Financial Derivatives by Mr R Gopinath and Article on the need of a professional insurance advisor by Mr Ankur Shah; Proud to be associated with Ms Payal Dave and Mr Arjun Shameer the passionate designers and the gallery of events at Gopast.
This is a house Magazine of Gopast for circulation amongst its associates. Coping up skills by Mr R Gopinath, Articles on retirement planning one by Mr R Gopinath and the other by Mr Nayan Bhowmick; Article on the need of a professional insurance advisor by Mr Ankur Shah; Proud to be associated with Mr D Murugesan the ambulance man and the gallery of events at Gopast.
This is our house magazine for circulation amongst our associates. This issue is covering the topics of Coping up skills using the body mind connectivity, Retirement dependency years graph and also Financial abundance.
Our House magazine addressing our associates. This issue contains how OTP for becoming the best version of ourself. Retirement planning, Behavioural difference and gallery
Our House magazine addressing our associates. This issue contains how to use Proud list as a part of coping skills. Partnership Insurance as a part of Niche market and Allocating money the concept of drawing our financial plan.
Inscriptions is our house magazine meant for our associates. In this issue we Discuss about "Guilt Feeling and how to recover from that", Intrinsic Value for Business and Families, and Retirement Needs from the technical side and The selection of Mr Hari Kishore N for the Technical tour and his experience.
Proud to present you the 35th issue of Inscriptions, our house Magazine. This issue contains valuable inputs. How to cope with stressful situations and recover soon an article by Mr R Gopinath, Sensex60k an article by Mr R Gopinath, that addresses the dilemma of investors. Mr D Balu contributes an article Asset Allocation and also the Hula Hooper Ms Ramya sharing her achievement
Proud to present you the 34th issue of Inscriptions, our house Magazine. This issue contains valuable inputs. How people rise themselves up from the valley of losses to successfully realise their dreams under the topic LegenD from L to D by Mr R Gopinath Radhakrishnan , How to Co-Create a life insurance plan with the Prospect an article which also narrates a real life incident also written by Mr R Gopinath, How is a family defined and how the money flow is important to the family an article by Mrs Savita Mudaliar Pillai and also our proud to be associated section covering the achievements of Mr Rohit son of an Insurance agent. Please read and also share for the benefit of our associates.-rg
Our Quarterly house magazine meant for our associates. This covers topics related to Mind management, wealth management , Risk management, Leadership and Marketing management. This issue covers Mirror Neurons, Net worth and Risk Management
Our Quarterly house magazine meant for our associates. This covers topics related to Mind management, wealth management , Risk management, Leadership and Marketing management. This issue covers Mirror Neurons, Net worth and Risk Management
Inscriptions 31st issue has been published. Please read about Self control and its role in our becoming a great personality in the article "Self Control- Is it a Rocket science?" written by Mr R Gopinath. The next article Financial Planning - the basics (part 1) written by Mr R Gopinath will be quite useful for financial planners, Insurance advisors and other investment products advisors. Mr Vidyadhar Lagad has contributed his article "Retirement planning, adoption of a son. We have proudly shared the achievement of Master Utkarsh Mathur, son of our associate Mr Samrat Mathur. Thanking all our contributors and patrons who have encouraged us to continue our pursuit of publishing a magazine that inspires and teaches our associates to bring about their best in their lives.-rg
This is the 30th quarterly issue for the associates of Gopast. This issue contains Mind management, Wealth Management, and gallery of news and achievements.
This is the 29th quarterly issue for the associates of Gopast. This issue contains Mind management, Wealth Management, and gallery of news and achievements
This is the 28th quarterly issue for the associates of Gopast. This issue contains Mind management, Wealth Management, Retirement planning and gallery of news and achievements
This is the 27th quarterly issue for the associates of Gopast. This issue contains Mind management, Wealth Management, Retirement planning and gallery of news and achievements
This is the 26th quarterly issue for the associates of Gopast. This issue contains Mind management, Retirement planning, Health insurance and gallery of news and achievements
House magazine for the associates of Gopast. This is the 24th quarterly issue. Inscriptions made on stone seldom fade, this is the core of the tag line of this magazine. Truth Stays Forever. This magazine will be of interest for people engaged in the financial services industry
Retirement planning using "Replacement Ratio Method"
1. MAKE RETIREMENT AN ENTRY NOT AN EXIT
R.GOPINATH
gopinathr@go-past.com
Are we prepared to live long?
Yes, most of us want to live long, but the question is are we prepared for it?
Well, the fact is that most of us are not prepared.
Adequate Retirement provisions is required to ensure all or a few of the under mentioned
aspects happen:
1) Maintain the standard of living that we are accustomed to.
2) Enables to do things that we could not during our working days. (Things that we are
passionate about, but have not been able to do being engaged in working to earn
for the living like Photography, Visiting 7 wonders of the World, Writing a book,
painting and so on)
3) Preserve our dignity by being independent.
4) Provide for contingencies (unforeseen).
5) Support others whom we care. ( In case our dear ones need some help.)
6) Early retirement.
Are we prepared to live long? yes, most of us want to live long but the question here is are
we prepared for it? Planning adequate financial support for those golden years has to start
very early in life to meet it. But we know that a majority of people start thinking about it only
when they are nearer to it.
To build substantial base for a continuous cash in-flow the acquisition has to start early
with small amounts, allowing enough time for it to grow.
There are two methods to quantify the post retirement income. Replacement ratio method
and the Expenses provision method.
Replacement ratio method, as the name explains it, is estimating a certain percentage of
the active income at the time of retirement to continue for life time after retirement.
Say for example my friend Mr. Atul (age 50) earning `1,00,000 per month now wants a
minimum of 50% of his income at his retirement ( age 60) as the post retirement income
(pension).
Let us suppose that his income goes up at the rate of 10%p.a , Then he will be drawing an
income of `3,36,000 at age 60,
50% of that is `1,18,000.
Now if we estimate the corpus required to generate this monthly income of `1,18,000, (at a
rate of 8% pa simple) it takes ` 1,77,00,000 to yield that.
2. So now the goal is to generate `1,77,00,000 in the next 10 years. How much do you think
Mr. Atul will be required to be set aside for this purpose, assuming that he will get 12% on
his yearly savings?
Almost `77,000 per month (total salary today is 1,00,000). (Please Donʼt faint..).
Suppose he needs the same amount of pension and had Mr. Atul started at age 40
(instead of age 50) then Mr.Atul may have to set aside only `18,000 per month at the
same rate of return from his age 40 to achieve this goal.
Mr.Atul do you see the difference?
Start planning for the retirement early, so that you can provide adequately for those golden
years. You must decide now as to what style of life you would like to have after retirement?
1) Free to do things (Complete Freedom/ dignified)
2) Maintain the standards (Decent)
3) Curtail and live within the means (Adjust and Compromise)
4) Depend on others for basics ( Helpless)
Some of the major road blocks to a good, decent and dignified retired life is:
1) Lack of planning,
2) Shy to consult a financial professional,
3) Wrong prioritization ( Ex.- Housing loan with a huge EMI at young age)
4) Spending more during the active work life and saving less,
5) Unexpected expenses during the middle age,
6) Inadequate insurance,
7) Consuming the retirement fund for other interim needs
This Replacement Ratio method does not consider the inflation rates because of the
underlying assumption that income will decide the expense and if a proportion of the
income is provided for then it will take care of the rest.
Retirement need not be an exit, but can be an entry into a world of freedom.