Vijaibabu's Blog - Personal Finance Guide for Financial Freedom

Starting early would ensure that your salaried clients are able to build a sizeable nest egg for their retirement. Unlike self-employed individuals or entrepreneurs who have the flexibility of deciding their retirement on their own, salaried individuals need to plan their retirement more diligently. The first step in retirement planning is identifying the corpus required for retirement. Advisors say that least 10% of annual income should be set aside to build a nest egg for retirement. If the income keeps increasing, it is advisable to increase savings as your clients may desire to maintain the same lifestyle during retirement. Financial advisors suggest that one should ideally plan their retirement in their 30s. Starting early would ensure that your clients are able to build a sizeable retirement kitty. “Retirement planning is not a priority for many. They are more focused on meeting their short term goals like buying house, car, foreign tour, etc. Salaried individuals s...

Saving for retirement has a very long-term investment horizon and equity-based assets are an excellent choice. As a long-term savings project, accumulating savings for retirement is no different from any other long-term savings. However, if you talk to conventional financial advisors, you will probably discover that this is a contrarian view. For some reason, there is a school of thought that believes that because one should not take risks with one's retirement savings, one should not invest them in equity. The logic is that older people are not earning any more so they can't afford to take any risks. The value of their money must never decline, even if it grows slowly. Once you accept this logic, then the only type of investments that are acceptable are those that offer guaranteed fixed-income returns. Curiously enough, this view extends not just to investments that actual retirees make, but also to investments that even younger savers make for retirement. These experts...

Retirement  is the time for enjoyment claimed one of the ads for Pension products. Yes it should be. But,  whether  it is actually that or it’s time to cut corners and count the coins, depends squarely on the actions prior toretirement of the individual concerned. Most people are not that concerned about retirement… but they should be. Retirement period these days are two to three decades. The corpus accumulated needs to be able to sustain for such a long period.  There are a whole lot of goals which take precedence as a rule – like a home, children’s education, vacation etc. These goals are important – but not nearly as important as planning for one’s retirement. General perceptions about retirement  : •    It’s so long into the future that we will look at it when the time comes. I want to enjoy life now. •    Retirement planning is taken care of by buying a few pension policies. • ...