Planning For Retirement? Avoid These Common Mistakes
"Retirement? Ah! C'mon, there's a lot of time for things like that." Did you also end up thinking the same?
Well, let us tell you this. Although you are only 30 yet, and retirement might be years and years ahead of you, but remember, a stitch in time saves nine. Systematic planning for retirement, done in time, leaves no regrets for future.
So, stop dreaming and start planning for retirement, from now. And while you are at it, here are 5 common mistakes to look out for.
Don't Forget To Have A Schemeful Roadmap
What are your plans post-retirement? What do you see yourself doing? Spending time indoors or making international trips? Or fulfilling little dreams that your busy life didn't permit for?
Planning all this well in advance will help you understand your post-retirement monetary needs better. Knowing how much money you need to spend the life you've imagined will help you set a systematic goal. The best way of going about it is listing your priorities now and then.
Will you have your family dependent on you? Will you be paying rent or loan for your house? Or will you be working during retirement? These are few questions to help you begin.
Not Starting to Save Early Enough
Living a luxury life is a dream of many. But overdoing it is not such a good idea. We tend to keep upgrading the electronic gadgets, daily use equipment, mobile phones, home renovations, without realizing that they suck up most of our savings. And by the time we are 40, we have used up most of our savings. That's when panic sets in. Now, that is a big reason to worry.
While fulfilling material desires is not bad, it is imperative we start saving efficiently from an early age to avoid mid-age crisis around monetary savings. Saving in time can help you plan your retirement better. So start early to save better.
Do Not Overlook Contingencies
A contingency is nothing but unexpected crisis. Around retirement, health-related contingencies are common. Medical bills can exhaust most of your pretty savings so can loans if you haven't planned it all in advance. You must bear this in mind that while your aging, such things can shake up your financial security if not carefully planned. Funds towards Mediclaims, LIC plans, etc. should be duly paid and saved up for future too.
Do Not Remain Ignorant Of Smart Investment Plans
All banks and financial institutions offer lucrative and beneficial long term smart savings plans. SIPs (Systematic Investment Plans), Mutual Funds, Shares and Stocks, Fixed Deposits, etc. give you geed returns in the long run. Dig them up to know which would help you post retirement. If needed, consult a financial advisor for beneficial plans without it being a burden to your pockets. Planning smart is as important as planning early.
Retirement is a period when you want to reap benefits of the hard work of your life thus far. Make sure you enjoy the honeymoon period you expected retirement to be, by avoiding these common mistakes when planning for retirement.