Planning Retirement..
The word ' Retirement ' may click relaxed life, no 9 to 5 struggle & enhanced social life to many minds. Yes ..It's true but there is other side to the coin as well. That is, no fixed income, increased medical expenses & a bug of Inflation eating the value of existing corpus. The proper steps taken at early age to create a sufficient corpus which will fund all the financial needs till death is a Retirement Planning process. There are practically two stages in later life. Following are the typical goals with expected financial actions. Now the major task is to decide the required Retirement corpus. 1.Estamte monthly household expenses. Add yearly expenses like House Tax, Insurance etc. 2.Consider the average inflation to be 6% 3.Calculate the Future Value of expenses. 4. An extra 5 – 10% of the estimated expense can be added to it as a precaution. 5. Apart from your living expenses, it is highly recommended for retired individuals to hold Health Insurance and