Saturday, September 28, 2013

Retirement planning? Ohh!! Are you kidding?

Retirement planning? ohh!! Are you kidding? i am just 32 Years old.

I was asking my one of the prospect. Sir, what are your plans when you retire? What kind of amount you would like to have?

some question - answers :-

Q - I am just 32 Years of age.....still lot of time in retirement. Why should I do it now?
My Reply  :- Sir, when you have time on your side, you earn more on the money you invest, like Capital + Interest + Interest of Interest :)  its call as power of compounding.

Q - I have enough contribution to my EPF & PPF account, it will be enough for retirement-
My Reply  :- Sir, Look at inflation, inflation is almost as high or same as you earn on PPF or EPF, the thing you want to buy cost 100 today & the same will cost you 108 after a year. so in real terms, you have not made any money on your capital.

Q - Do you think i will require lots of money? When i will retire? As my expenses will be lower at that time...also i will be debt free by the time i retire.
My Reply   - Sir, the only answer is :- anyone who is on holiday for a day, spends more money than the man going office on the same day. So your working life is 30 years and life after retirement is approx 25 years....that too all that 25 years no earnings at all?

In India, almost 70% plus people do not have social security / pension provision or retirement planning........

I think one should start planning for retirement from the 1st day of you join the job.

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