Banking and Investment
Financial Planning – integral to investments
Most of us, in our early earning years, fail to take control of our money and save money with clearcut goals. There are also amongst us savers who fail to channel savings into right investment avenues. So, at the end of it, both these categories of people are not taking time off to understand and plan for their financial future. Whatever be your goal, a house, a safe retirement plan, children’s education, vacation abroad etc, one needs to start planning.
Proper planning goes through two important phases – saving and investing in your earning years and carefully managing your assets according to your goals. Your goal should be clear and simple, measurable and specific. Take a disciplined approach and put yourself on track to meet your goals. Always remember, whatever your age, unless you inherit a fortune, win a lottery or your earnings are so large that you have all that you ever need, you will not succeed in building wealth unless you save.
Retirement Planning is an essential element of any financial planning. Before you make a plan for your retirement from a job, business or profession, you need to ask yourself three essential questions. 1. How long until your retire. 2. What is the money you will need to lead a comfortable life and 3. What are your current saving avenues for retirement. If you need to know where to invest your money and when you will need the money, you need to decide when you will retire. Here are some words of wisdom relating to retirement.
1. The number of years after retirement is almost equal to the number of your earning years.
2. Inflation and taxes are the biggest enemies of retirement planning as they erode your returns.
3. Most people cannot maintain their standards of living post retirement if they do not start earning and invest regularly.
4. Your PPF, Gratuity, Post Office savings etc will last only for few years post retirement.
In deciding where to...