Is your retirement coming soon? No, does it seem far? But how you act now is critical to your future security. Well failure to start planning your retirement in your 20s, 30s or however old you happen to be now is more dangerous and misguided than it ever has been. The important part is that if you don’t have a good plan, you’re putting your future security and a really fun period of life in serious jeopardy. MoneyMindz.com, India’s First Online Financial Advisory Portal is taking an initiative to help you understand the significance of retirement planning through this article.
What Is A Good Retirement Plan?
It differs from person to person but some people think a retirement plan is just a savings account. But however, it should be much more. You need to know that every financial decision you make now affects your overall lifetime wealth and ability to retire securely. For example buying a house, obtaining student loans, having children, buying new cars or saving and investing your income — they can all have huge impacts on what resources you’ll have after retirement.
Retirement can be termed as the end game of all the years you are occupied with earning, spending and saving. It is therefore necessary that your retirement plan should be a detailed account of all aspects of your finances now and into the future.
Reasons Why Planning for Retirement Is Critical
Here are few reasons why it is more important than ever to get a retirement plan:
Economy is Stacked Against You
We understand that it is not your imagination. Therefore it is hard to get ahead. May be perhaps harder than ever before. It’s more important than ever to adopt smart personal finance habits. Living within your means, save money for retirement, invest wisely, only borrow if it will help you get ahead (like buying a house), have an emergency fund and backup plans in case things go awry. You shall manage your money like someone wealthy even if you are not.
Social Security is Failing
If you don’t know let me tell you about Social Security which is only meant to supplement retirement income — not be your retirement plan. So, it’s typically not adequate to fund living expenses in retirement. It may be risky to expect your Social Security income at all.
Medicare is in Worse Trouble than Social Security
Out-of-pocket medical costs can be termed as the third biggest expense for most retirees. You can’t even expect much help from the government for your health care bills.
Goals and Plans Will Reduce Your Stress Now and Make Things Possible in the Future
Here the good news is that it is easy to reduce stress by creating a retirement plan as soon as possible. Again it may cause anxiety to set up a plan, but it greatly reduces stress over the long term.
If You Plan, Maybe You Could Retire Early — Really Early
By reading this article if you’re thinking that retirement seems like an impossible dream, think again. So, a good plan will get you there. A really good plan and lots of discipline can get there in a really short period of time. Therefore, retirement can be done. It doesn’t need to be painful but it only takes a plan.
For more information visit: www.moneymindz.com or give a missed call to 022-62116588 and download our FinFree app.