Planning for retirement? Consider factors beyond your finances
Financial planning is all about living in the present and also planning for the future. Retirement planning is as much a psychological aspect as it is a financial one. When you are planning for retirement, you need to look beyond the retirement corpus you would need for a relaxed life going forward.
This life-phase will bring it’s share of challenges. As your Financial Advisor in Kolkata, I intend to address the financial consequences of those challenges.
The Japanese people have an interesting approach to retirement. Rather than using the word ‘retirement’, they have a concept of ‘second life’.
We want you think about what your ‘second life’ is going to look like. While planning for retirement, many people do not have clear ideas about retired life.
We may know what we are retiring from. Do we know what we are retiring to? This is where, I, as your SEBI Registered Investment Advisor in Kolkata, would play a role of a coach in your life for a fulfilling ‘second life’.
Through proper financial planning techniques, we get the opportunity to build the kind of life we want. The whole idea is to accomplish things we had dreamt of when we thought we’d have all the time in the world.
Planning for retirement does not only involve number-crunching. It requires in-depth analysis of retirees psychology
While planning for retirement, do you know what exactly leads to peaceful retirement?
Obviously a peaceful retirement starts with having the required retirement kitty in place. As your Certified Financial Planner in Kolkata, I need to carefully consider your needs along with various other intangible factors.
Successful retirees wish to have good control over all important aspects of their lives. Having a plan for predictable life-events is the starting point. Keeping provision for unforeseen events is a non-negotiable measure for anyone. Even if we may not have control over things such as health and macroeconomics we should recognise our control over the attitude towards these uncontrollable aspects.
Each retiree would want to live each and every day to the fullest. Having a purpose in retirement is what matters.
Retirees continue to challenge themselves to stay involved in activities which fascinates them. They love to create new life-experiences. Retirement is an ideal time to develop new skills, pursue hobbies and to stay involved in any vocation.
Successful retirees wishes to stay connected to their families, their communities, their own world and spirituality to whatever extent possible.
Having a sense of purpose could add years to our lives. At the foundation of this ideal retirement personality, there’s an optimistic view on life. By the way, optimists live longer and are happier than pessimists.
When you’re planning for retirement, number-crunching involves the following:
- Analyzing the availability of retirement benefits from various sources (such as employment benefits plus own contributions like PPF, Mutual Funds, Direct Stocks, FDs etc.);
- Income requirement for self along other potential dependents;
- Apprehension of future changes in requirement due to personal and macroeconomic factors;
- Calculation for required retirement corpus including contingency fund during retirement;
- Asset allocation based on your risk profile, investment time horizon, objective, personal and macroeconomic factors;
- Periodical re-balancing of portfolio based on personal & macroeconomic factors.
All in all, as Fee Only Financial Advisor in Kolkata, I believe that calculating and building a retirement kitty is very important. But, we have to look beyond the retirement numbers.
