Retirement and Financial Planning
Can you afford to retire? Retirement conjures up images of a
leisurely lifestyle, with walks by the beach or in the park.
Retirement does not occur just like that. It can only happen
with proper financial planning. One simply does not exist
without the other.
Research had indicated that the vast majority of the
population (some mention as high as 95%) might not have
enough money to retire when they reach the official
retirement age. The vast majority simply will not have
enough funds to be financially independent by the time they
reach age 65. They will still be broke at the age when they
are supposed to be able to take life really easy. They will
likely have to keep on working to sustain their daily
livelihood. It is sad, but it is true.
Retirement Fund
There are various tools and calculators in the market that
aim to help you determine your retirement needs, and we have
reviewed some of them, which may be useful to the
individual. A caveat though – simply calculating how much
you need and financial planning will not do anything if you
do not implement the financial plan.
Financial planning should not be left until you are an
adult. Start as young as possible for this will allow your
money and funds to grow through your investments. Having
said that, one should have an investment portfolio that will
grow large enough to fund one’s retirement needs.
What if you do not start young? The results can be quite
damaging. Starting late will have the time factor work
against you. Why do we say that? The reason is that the
compounding effect of time can make a huge difference to the
size of your portfolio. Warren Buffet, said to have started
very young in investing, will likely be a very good
testimony to this fact.
In fact, the compounding effect of time has been described
as the eighth wonder of the world! The results and impact on
the size of your portfolio can be very dramatic! So do start
planning as early as possible. Get your personal financial
plan in place. If you have been procrastinating, start now -
now is always better than later, and later is better than
never.
Just go do it.
Retirement and Financial Planning
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