About Author
- He is the CEO of www.subramoney.com
- An Accountant by Qualification and a lawyer by training
- He has conducted over 1000 training and financial communication session across the country
- His mission is to equip smart people with the tools to get richer
About book
- What is retirement: Is Retirement an Age or Amount of Money? It is just a phase where your daily income is now no longer available and your saving and investment becomes your ultimate supporter
- Retirement is Something Harsh to digest, but need to be accepted
- Important part in this stage is how well you manage your money in Saving & Investing (Accumulation Stage) and in Retirement (Withdrawal Stage)
- How much You need to survive at your Non-earning period depend on 4 factors:
- How long you and your spouse will live
- Performance of your investment portfolio
- The plan ruiner (Inflation)
- How well you have predicted your expenses and manage your withdrawals from your corpus at retirement
- Steps to Reach your corpus:
- How much your Retirement Expense will be both day to day one as well as your comfort one (House, Cars, etc)
- Make A Realistic estimate of Expense
- Next, how much you have and how much you owe (Asset & Liabilities, Cash Flow & insurance)
- Your Will
- Compare your Income and Expense and start Investing for Retirement (Net worth)
- Your insurance plans
- Goal Setting Should be SMART:
- S Specific (age/term to retire)
- M Measurable (Measure your corpus with your earning and expenses)
- A Achievable (Corpus value should be achievable)
- R Realistic (Planning should be real not fictitious)
- T Tracked (Goal should be tracked and if necessary changes needed than should be done)
- Investing 40 a day can help you to become Rich:
“If You spend 40 a day in cigarettes or 2,000 in Restaurant or 10,000 a month in Shopping. Save them and Invest. This Amount will grow to Millions in 30 years! If u invest in Equity, Sensex, PPF, etc. Just Invest It And be a Millionaire. Even you can save more by using products only when you actually need them”
- Compounding is the most powerful shastra of planning it is interest on interest and its effect is seen in later years only if you are consistent towards your investment and don’t withdraw that amount before you planned
- Don’t forget Inflation in all this as the inflation is the biggest destructor of Retirement planning as higher the inflation rate than higher the prices of goods and services at retirement. So, one should take Inflation very seriously at the time of planning
- One should avoid Ponzi schemes in their planning as such schemes looks attractive, but eventually they will ruin your corpus (Especially old people)
- Women’s should also need to plan for Retirement because they work for a lesser period and live longer
- One can use Reverse mortgage also to get a part of regular income from fixed assets (Best in time when person is asset rich but income poor)
- Annuity can also help in Retirement to ensure a regular flow of money at the time of non-earning age
- Some of the Factors which will Avoid Losing your corpus are:
- Avoid high-pressure sales techniques
- Say no to strangers (about Ponzi scheme)
- Always ask to think about the offer for a few days or put him off by saying that you need to consult with your children
- Say “I do not understand “(Best way to avoid)
- Never, ever give credit details over phone (Fraud calls)
- Avoid letters or calls that claim you have won a prize (Trending Nowadays)
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