basic concepts of retirement planning

8/11/2019 Basic Concepts of Retirement Planning

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RETIREMENT

PLANNING

N. Vyshnavi

A. Jayadeep

P. Harsha


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Retirement planning, in a financialcontext, refers to the allocation of

finances for retirement. This normally

means the setting aside of or other toobtain a steady at retirement. The goal

of retirement planning is to

achieve financial independence, sothat the need to be gainfully employed

is optionalrather than a necessity.
http://en.wikipedia.org/wiki/Retirementhttp://en.wikipedia.org/wiki/Financial_independencehttp://en.wikipedia.org/wiki/Financial_independencehttp://en.wikipedia.org/wiki/Retirement


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process of Retirement

PlanningStep 1: Identifying your financial and

retirement goals

Step 2: Analyzing your current

financial situationStep 3: Risk Profiling

Step 4: Asset Allocation

Step 5: Investment Allocation StrategyStep 6: Periodic Monitoring and

Rebalancing


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The process of retirement

planning aims to;Assess readiness-to-retiregiven a

desired retirement age and lifestyle,

i.e. whether one has enough money to

retire; and Identify actions to improve readiness-

to-retire.

Acquire financial planning knowledge Encourage saving practices


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Benefits of Retirement

Planning Retirement planning helps you maintain your

desired lifestyle during old age. It helps youplan for key life stage events leading up toretirement. It provides financial security to

you and your dependents by enabling you tomake prudent investments during yourworking years. It also enables you to makethe best use of your hard-earned money postretirement. One of the key benefits ofeffective retirement planning is to cover forany contingencies arising from uncertainevents which can compromise your ability tomeet your financial goals.


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Some investment options

Stocks

Bonds

Government saving bonds

Treasury securities

Mutual funds

Real estate

Retirement plans

NPS


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Some saving options

Savings account

Certificates of deposits

Money market funds


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Top 10 Ways to Prepare for

Retirement1. Start saving, keep saving, and stick to your goals

2. Know your retirement needs

3. Contribute to your employers retirement savings

plan

4. Learn about your employer's pension plan

5. Consider basic investment principles

6. Don't touch your retirement savings

7. Ask your employer to start a plan8. Put money into an Individual Retirement Account

9. Find out about your Social Security benefits

10. Ask Questions


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7 Golden rules of retirement

1.Save 10% of your income for retirement2.Increase investment as your income grows

3. Don't dip into corpus before you retire

4. Withdraw 5% a year initially, then step up

5. 100

age = Your allocation to stocks6. Borrow for education, save for retirement

7. Save 20 times your annual expenses


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The 7 Biggest Retirement

Planning Mistakes

1. Assuming you have control overwhen you quit

2. Ignoring the tax impact ofdistributions

3. Not saving enough for medical costs

4. Failing to lock up lifetime income

5. Failing to lock up lifetime income

6. Underestimating longevity

7. Drawing down retirement savings toorapidly


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Would You Rather Have, A

Million Dollars Today, Or APenny That Doubles Every

Day For Thirty Days?


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I Hope You Choose The

Penny!!!


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basic concepts of retirement planning

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