RETIRMENT PLANING

SUBMITTED BY,
B VENKATA SAI SRAVAN
 PEN DOWN YOUR
ESTIMATED EXPENSES
  List down your expenses in order of priority
and cover them one by one. You may not
have a steady income, but you can live your
post-retirement life, the way you want to. Be
it your daughter’s destination wedding, a
world tour with your wife, owning a beach
house or having your own organic farm. You
can plan for each of this luxury, if you plan
early. Have a timeline for all such events.
Designate a budget for every expense
 CREATE A CONTINGENCY
FUND
 Don’t let unplanned expenditures burn a hole
in your pocket! Planning for what you know is
going to happen is easier than planning for
uncertain events such as medical emergencies,
unforeseen circumstances or any such event
which you might not have expected. Such
unexpected events could empty your savings
and wreck your planning. It’s a good option to
have funds dedicated to such contingencies
which may or may not befall you.
 BROADEN YOUR
INVESTMENT HORIZON
 Move away from the notion of sticking to only
low risk investments. As opposed to what
traditional advisors might say, sticking to low
risk investments will safeguard your money
but not help it grow to meet your needs. One
of the major threats affecting your retirement
corpus is inflation, as it eats into your savings
at an increasing rate. It’s better to invest in
equity instruments to counteract inflation and
accelerate the growth of your money.
 THE GOLDEN RULE –
START EARLY
 The earlier you start, the bigger corpus
you’ll accumulate. Start investing at an
earlier stage to allow your savings to get
compounded for a longer period of time.
Treat your retirement with as much
importance as your current financial needs
and start saving a small amount regularly
towards this goal
 AVOID BREAKING INTO
YOUR RETIREMENT CORPUS
 Avoid the lure of digging into your retirement
fund. A common habit amongst young
individuals while switching jobs is to withdraw
their PF account balance instead of
transferring it. Your retirement corpus suffers
a huge blow each time you withdraw your PF
balance and also, the balance will be taxable,
if withdrawn within 5 years
 INCOME SOURCES POST
RETIREMENT
 
 Well, your monthly salary won’t be credited in your
account any more, there can be other ways in which
you might continue sourcing income. For example, you
can receive a pension from your employer, you could
own an extra home which you could give on rent, or you
could be hired as a guest faculty in an educational
institution and receive fees for sharing your expertise
with the students. Are these sources of income adding
up to help you build enough money so that you are
ready for unexpected expenses? Retirement life can
bring in unforeseeable expenses in your life, and you
need to make sure that you are prepared for it
 INVEST WITHIN YOUR
LIMITS
 
 Although saving maximum to enjoy retirement is
indeed a must, that doesn’t mean you invest all
the money that you currently possess. Remember
that no type of investment is considered to be
safe. So it is advisable to invest within your
limits and do not get lured by lucrative schemes
offering exceptionally good interest rates. Invest
within your boundaries and regularly invest,
because this way you stand a chance of
benefiting from the power of compounding
 IDENTIFY YOUR RISK
APPETITE

 What type of investor are you? Are you an

aggressive investor who doesn’t mind investing a
large amount in equities with the hope of earning
higher profit margins? Or are you a conservative
type who doesn’t mind settling with a low but
steady income? An individual’s risk appetite plays
an important role in not just retirement planning
but any type of investment planning. Make sure
you understand your risk appetite before investing
your hard earned money in any retirement scheme
 STAY OFF DEBT

 Well taking care of debts must feel like a

cakewalk right now but trust us, you do not
want to owe anyone money later in life,
especially when you are about to retire. It is
advisable to not have any pending loans or
unpaid credits in the kitty as you near
retirement. Pay off all your debts if you do
not wish to lead a debt ridden retirement life.