Retiring soon? Most people view retirement as a time for a leisurely lifestyle, with walks by the beach or in the park. However, the reality is not always so rosy. Retirement does not occur just like that. It can only occur with proper financial planning. Retirement and financial planning have to go together.
Research had indicated that the vast majority of the population (some mention as high as 95%) might not have enough money to retire when they reach the official retirement age. The vast majority simply will not have enough funds to be 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 take life really easy. They will likely have to keep on working to sustain their daily livelihood. It is sad, but it is true.
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.
Planning should start as young as possible. This will allow your money and funds to grow through your investments - you should have an investment portfolio that will grow large enough to fund your 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 principle of the compounding effect of time has been mentioned as the eighth wonder of the world. So, do be prompt in planning for retirement. Get your personal financial plan in place. If you have been procrastinating, start now.
Looking for information and tips on retirement and financial planning? Go check out our site on simple financial planning and grab the free classic on getting rich.
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