Retirement And Financial Planning

Can you afford to retire? Retirement conjures up images of a leisurely lifestyle, with walks by the beach or in the park. Retirement does not occur just like that. It can only happen with proper financial planning. One simply does not exist without the other.

Various studies have shown the vast majority of the population (some say as high as 95%) will not have enough funds in their accounts to retire. In effect, the vast majority will not be able to become financially independent by the time they reach age 65. They will still be broke at the age when they are supposed to be able to enjoy their life. They will have to find the means to sustain their daily livelihood. It is a sad situation, but it is a fact.

There are various tools available (and many of them are available online) that aim to help you determine your retirement needs., We have reviewed some of these, which we feel may be useful to the average folk. Here is something to think about – simply calculating how much you need for retirement will not do anything for you – if you do not implement the financial plan.

Financial planning should start as young as possible, and should not wait. Starting young will allow your money and funds to grow through your investments. This will allow a person to accumulate an investment portfolio that will grow large enough to fund one’s retirement needs.

Why start young? This is because time can work for or against you. Why do we say that? This is because the compounding effect of time can make a huge difference to the size of your portfolio. Warren Buffet will likely be a very good testimony to this principle.

In fact, the compounding effect of time has been described as the eighth wonder of the world! The results and impact on the size of your portfolio can be very dramatic! So do start planning as early as possible. Get your personal financial plan in place. If you have been procrastinating, start now – now is always better than later, and later is better than never.

Carpe diem (seize the day!). Just do it.

This entry was posted in Retirement. Bookmark the permalink.

Leave a Reply

Your email address will not be published. Required fields are marked *