Plan for an early Retirement

The idea of an early retirement is as exciting as it sounds, but the party ends there. To achieve an early retirement you need more than luck and by luck it is never meant that you have to live that long. The good news is most of us are going to live long, but that also is bad news.

Retirement planning will help you manage your funds pre and post retirement keeping in view your life style and retirement goals. Retirement planning is not a simple things its very long and hard work but then at the end of day it will give you the Golden years you and you only deserve, remember  “It's the hottest fire that make's the hardest steel.”

The demographic dividend over the next few decades is expected to spur India’s economic growth. But they are going to get older, living longer and paying for it. Early retirement may be a distance dream for most who fail to take certain simple steps as discussed below.

So let’s get set and get started for a step by step analysis of the factors that are most important in the success of a plan to retire early.

1.       The first and most important thing is the realization of the impact of a plan and no plan for retirement. The retirement period can be as long as 25-40 years. Today retirement or retired doesn’t mean what it used to. To retire in style is getting harder than ever. You may have to plan not only the expense but also what you will do with the time you have at your disposal. If not planned with the help of a professional planner it is possible there won’t be any retirement at all. Never put off to tomorrow what you can do today.

2.       The second most important thing to consider after the realization for a need to get a retirement plan in place is underestimating how long you will leave. The advance in medicine will make you live as long as you can, so to plan for retirement you must plan for a reasonably long period of retirement.

3.       The third important thing is underestimating the effect of inflation. Inflation is the biggest risk to any retirement saving. Inflation is the sustained increase in the price of goods and services over time. It will affect your expenses on food and health care beyond imagination, so the failure to consider it may result in the risk of lasting savings before you last. Related to this factor is the decision to position investments for growth, a too conservative investment strategy can be just as dangerous as a too aggressive one.

4.       Then most often we commit the mistake of starting to plan for retirement too late. Not saving enough and not saving early enough can derail the best of retirement plans. The best way is very simple, save early, save often and save consistently.

5.       Then the most common of all mistakes that most of us do is to do it yourself. Going alone on a plan for retirement will expose you to missed investment opportunities, sloppy planning and lax saving schedules. Retirement planning is a serious business and the assistance of a professional retirement adviser is going to make the plan and the process of executing the plan more efficient and manageable.

6.       Some other things that will help you in better retirement planning and which your retirement adviser will take care are, making a portfolio with right asset allocation according to your risk profile and goals, taking advantage of free money, power of compounding, bucket investing, diversification and using enforcement tools.

More than 80% people in our country fail to plan and for most of the other 20% the plan fails because of not taking assistance of a professional retirement adviser. One out of every 3 elderly Indian is already living below poverty line. It’s high time we take this issue seriously and take right decision in time to take care of retirement period right at the start of our career, because we may have to cater for a period longer than our earning period and that is a real challenge. It's better to do the right things wrong, than the wrong things right.

I wish to end this article with, “The person who has no goal, who doesn't know where he's going, and whose thoughts must therefore be thoughts of confusion, anxiety and worry—his life becomes one of frustration, fear, anxiety and worry. And if he thinks about nothing... he becomes nothing. So think big...start small...move fast.”

Once, a professor began his class by holding up a glass with some water in it. He held it up for all to see and asked the students, 'How much do you think this glass weighs?'
1 pound! ....2 pounds! .....3 pounds! ......the students answered.
I really don't know unless I weigh it, said the professor, 'but, my question is: What would happen if I held it up like this for a few minutes?' 
Nothing the students said.
OK what would happen if I held it up like this for an hour?' the professor asked. 
Your arm would begin to ache' said one of the students.
You're right, now what would happen if I held it for a day? 
Your arm could go numb, you might have severe muscle stress & paralysis; have to go to hospital for sure ventured another student. 
All the students laughed.
Very good. But during all this, did the weight of the glass change? Asked the professor. 
No, replied the students. 
Then what caused the arm ache; the muscle stress?
Instead, what should I do? 
The students were puzzled. 
Put the glass down' said one of the students. 
Exactly! said the professor. 
Life's problems are something like this. Hold them for a few minutes in your head; they seem OK. Think of them for a long time; they begin to ache. Hold them even longer; they begin to paralyze you. You will not be able to do anything.
It is important to think of the challenges in your life, but EVEN MORE IMPORTANT to 'put them down' at the end of every day before you go to sleep. That way, you are not stressed, you wake up every day fresh, strong, can handle any issue, any challenge that comes your way!
Remember friends- PUT THE GLASS DOWN TODAY!

The trick is to shake it off...

One day a farmer's donkey fell into a well. The farmer frantically thought what to do as the stricken animal cried out to be rescued. With no obvious solution, the farmer regretfully concluded that as the donkey was old, and as the well needed to be filled in anyway, he should give up the idea of rescuing the beast, and simply fill in the well. Hopefully the poor animal would not suffer too much, he tried to persuade himself.

The farmer asked his neighbours help, and before long they all began to shovel earth quickly into the well. When the donkey realised what was happening he wailed and struggled, but then, to everyone's relief, the noise stopped.

After a while the farmer looked down into the well and was astonished by what he saw. The donkey was still alive, and progressing towards the top of the well. The donkey had discovered that by shaking off the dirt instead of letting it cover him, he could keep stepping on top of the earth as the level rose. Soon the donkey was able to step up over the edge of the well, and he happily trotted off.

Life tends to shovel dirt on top of each of us from time to time. The trick is to shake it off and take a step up.

The story goes that sometime, close to a battlefield over 200 years ago, a man in civilian clothes rode past a small group of exhausted battle-weary soldiers digging an obviously important defensive position. The section leader, making no effort to help, was shouting orders, threatening punishment if the work was not completed within the hour.

"Why are you are not helping?" asked the stranger on horseback.

"I am in charge. The men do as I tell them," said the section leader, adding, "Help them yourself if you feel strongly about it."

To the section leader's surprise the stranger dismounted and helped the men until the job was finished.

Before leaving the stranger congratulated the men for their work, and approached the puzzled section leader.

"You should notify top command next time your rank prevents you from supporting your men - and I will provide a more permanent solution," said the stranger.

Up close, the section leader now recognized General Washington, and also the lesson he'd just been taught.

Short Story-3

Once, during the course of his travels, Guru Nanak arrived at a village where the people were a quarrelsome lot. He blessed them and asked them to prosper and live in that village forever. In the next village, where the people were peace-loving, Guru Nanak blessed them too but asked them to abandon the village and disperse. Mardana, his close disciple, puzzled by the guru’s strange blessings, asked him why he blessed the first village with prosperity though its people were unworthy |of it and asked the good people of the second village to disperse. Guru Nanak smiled and answered: “The quarrelsome will only spread unrest and friction wherever they go. So I asked them to remain where they were. But it is better for the peace-loving to disperse and take their good qualities with them so that all those who know them can learn the art of peaceful coexistence.”

Short Story-2

As the old man walked the beach at dawn, he noticed a youth ahead of him picking up starfish and flinging them into the sea. Catching up with the young boy, he asked him why he was doing this. The answer was that the stranded starfish would die if left in the morning sun. “But the beach goes on for miles and there are thousands of starfish,” countered the old man. “How can your effort make any difference.” The young boy looked at the starfish in his hand and then threw it to the safety of the waves. “It makes a difference to this one,” he said.

Short Story-1

Two travelling monks reached a river where they met a young woman. Wary of the current, she asked if they could carry her across. One of the monks hesitated, but the other quickly picked her up on to his shoulders and carried her across the water to the other bank. She thanked him and departed. As the monks continued on their way, one was brooding and preoccupied. Unable to hold his silence, he spoke out: “Brother, our spiritual training teaches us to avoid any contact with women, but you picked that one up on your shoulders and carried her!” “Brother,” the second monk replied. “I set her down on the other side, while you are still carrying her.