How Sound Is Your Retirement Planning?

It is never too early to start planning for retirement. Retirement planning means caring for two aspects – your personal fulfillment and financial security. What you need is to have a retirement corpus which will provide you financial self-reliance when you choose to suspend your boots. Start now to let the fundament of substance interest work it’s magic.

Albert Einstein called it the eighth question of the world for a good reason. With an early on start you can make investments aggressively with a higher percentage of collateral in your investment stock portfolio leading to a bigger corpus. Calculate your current cost of living and add the price of inflation on that.

  • Has a one-way commute of at least 30 minutes (in the highest quartile in this sample)
  • The romantic relationship between rates of interest and currency markets value is complicated
  • Investment income from collectibles taxed at a particular rate
  • The activity is not passive activity to the taxpayer per Section 469; and
  • Dudster company’s DOL is 2. If sales increase by 10%, NOI will increase by 5%
  • 200-day MA 1129
  • Overhead + Construction Cost is $450 psf

Remember to add any expenditures that are being borne from your company today but which you might need to undertake in the future on your own. For instance medical costs. Future needs like higher child education and marriage. Keep room for extravagance, nurturing hobbies, vacations, and gifts. After reaching a careful estimate, calculate the total amount that should be saved and diverted into creating a corpus and choose a good plan. Creating wealth through long-term financial investment planning can be carried out in two ways – aggressively or conservatively. The normal ways of channelizing funds are direct investments in stock markets, mutual funds, fixed deposits, bonds, government securities, and purchasing life insurance coverage.

Retirement planning through an insurance policy can provide double advantages of security with wealth generation. You can either choose for simple Pension and Annuity programs or ULIP (Unit Linked Insurance Plan) pension plans. In ULIP pension plans as an integral part of the money is invested in the marketplaces which over a period of time to give high profits.

While taking into consideration the equity – debt allocation, it is advisable to take only as much risk as required and that you can bear easily. Top ups can further enhance the returns as high quality allocation charge to them is usually 1-3% only. However, do go through the overall charges of the plan.

Currently, all pension programs are investments allowed under section 80C of the TAX Act where maximum investment up to Rs. 100,000 p.a. is exempted from taxes. Make sure that your corpus itself is taxes free even though the annuity payouts are taxable. Search for schemes with a higher secure period so you aren’t tempted to withdraw money too early that may deprive you of the benefit of compounding! Ensure that the corpus will be accessible for an annuity at the right time of your pension.

Prom says he charges a share of assets, which could be beneficial to a young professional starting out. “Whether they come to me with 20,000 or 200,000, it’s still 1 percent,” he says. “Someday, (young professionals) would be the ideal clients that a lot of advisors would ‘compete’ for. We try to get clients to this point and beyond. “We understand young families need for reasonablypriced, objective, individualized guidance to help them start life on a sound financial path jointly.

Buck says his role is like that of a personal trainer: person who provides knowledge, mentoring, and perspective. “We provide professional, objective knowledgeable advice and you just pay for the services you will need and desire. We advise not only on your financial investments, however the risks that can impact achieving your targets.