Thursday, 8 March 2012

5 things to plan your retirement life

Have you ever think about your retirement and retirement life. Some people are not interested to think about your death, but death is a reality and everybody should face once. Retirement is also a reality and most people should lead a retirement life. If you plan now, you can enjoy a happy retirement life. But how can you plan your retirement life? The following things you must plan for your happy retirement life.

1.When you retire?

This is the first thing you have to plan about your retirement. If you are an employee, you may have a retirement age. You may be compelled to retire that time as per the organization or office where you work. If you are business man or running a sole proprietorship you have to decide till when you run your business effectively. Here you can calculate how much years left for your retirement. Yes the age of retirement is personal and varies from person to person. But you have to plan your retirement age and time of retirement so that you can plan accordingly.

2.Where to retire?

This may be a little bit catchy, where to retire. Now you are living at the place where you are working or doing your business. But this may not be the place you wish to or have to live after retirement. If you are free to take a decision, you have to plan a quiet, inexpensive place to lead your retirement life. The inexpensive place I mean that some place are very less expensive to live than high expensive city. So select a quiet village, but you must take care of nearness of hospital and health care centers, banks, transport facilities, nearness of your friends and relatives and also have the convenience of some social work which you can spend your valuable time. This is helpful to avoid the loneliness and boring and gives mental satisfaction. Nearness of church, mosque or temple where you can visit daily for you spiritual requirements and meditation is also a must.

3. How much money you need?

This is another important factor you have to decide how much money you need to retire. With how much money you can survive your retirement life. Now you are working or doing business. You have your income to survive. After retirement you don’t have salary or business income. You may have pension or any such related income. But is it enough to lead a retirement life. Retirement life may be inexpensive. But you have to spend for your daily needs and other related expenses. So you must decide how much money you need to lead a happy retirement life. So plan it right now when you are working.  You have to plan it with the consideration of inflation also. So there is a need of a lot of money that time. This retirement calculator helps you know how much money you need for your retirement life.

4. How to save for your retirement?

You must save for your retirement. After finding how much money you need to lead your retirement life, you have to plan how you set apart that money. You can accumulate money with your Provident fund Account or 401K account, Public provident fund or such related saving methods etc. any way you should set apart a portion of money periodically for your retirement needs. In my opinion you do some safe investments for your retirement money. If you are so young you can go for risky investments such as stock exchange or high yielding mutual funds etc. But when you become old, do only safe investments for your retirement plan. Bank fixed deposits are also suitable, if it offer high interest rate.

5. How much diversity need for retirement saving?

You must have heard that do not put all your eggs in one basket. It means diversify your investment to avoid the chances of a complete failure. If one method fails you can gain from another one. But here I advise that do not diversify much your retirement saving. Invest only in safe investment schemes such as Provident fund, 401K, Public provident fund, Bank fixed deposits etc.

I f you find a satisfied answers for all the above questions, you can lead a successful and happy retirement life. Retirement life may be happier with no any tension form business or work and also your children may be in a good position and you must not worry about them. So I wish a happy and peaceful retirement life for all.

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