Retirement Planning

DON’T LET THESE FOUR MISTAKES DERAIL YOUR RETIREMENT PLANS Retirement is a long-term goal. Our behaviours often get moulded by what happened yesterday and what will occur tomorrow. So, when the target is years away, there is a chance of missing out on important things. Therefore, investors need to be very careful while planning for retirement. Small mistakes of today can get amplified over the years and become an error of epic proportions. The sad part of long-term goals is that when you realise that there is a miscalculation, it is too late to correct the course. So, it pays to be on guard. Here are some mistakes that you should avoid. Failing to consider inflation Do you know what will be the value of today’s `1 crore 30 years later? It will be `23 lakh if you consider inflation at 5%. So, in three decades a neat sum of today can become less than one-fourth of its value. While planning for retirement, many commit the cardinal mistake of avoiding inflation. If you forget inflation, you are setting up yourself for a poor standard of living when you are old. So, investments for retirement, which is typically 25-30 years away, need to be made with an adequate calculation about inflation. Assume inflation around 6-7% and then compute what your retirement corpus needs to be. Read more at www.starhealthdevarajan.com/news/690 For Insurance related services Call 98401 77017 Devarajan