Pattabhiraman Murari of www.freefincal.com has asked me to speak for 3 hours on retirement planning. It is difficult to speak for 3 hours on retirement planning, because it is a simple topic and does not take so much time. Please understand being simple means – simple to understand. Not saying it is easy to do.
Like my friend Shammi Gupta. She is a brilliant Yoga teacher. It is very easy and nice to watch her do. Doing it? OMG that is the problem!!
So Retirement Planning 101, let us say consists of the following things:
1. Knowing when you will retire.
2. Knowing how long you and your spouse will live.
3. Knowing how much you will spend in this period
4. Knowing how much your medical expenses will be.
5. Starting to save/ invest as soon as possible (understanding, and so tapping Compounding)
6. Investing as much as possible, as quickly as possible, and not interrupting the compounding.
7. Understanding asset classes – equity, debt, cash and real estate
8. Understanding asset class returns, standard deviation, mean, and reversion to the mean.
9. Understanding Asset Allocation.
10. Knowing that Cost really matters, and one way of mitigating costs is through higher saving.
That is all. And I am going to speak about just the following items…and nothing new.
You will hear about all this on Friday, 29th May, 2015 at Chennai. Nothing great.
I hope that you realise that 1-4 is a joke – nobody can estimate these 4..so what you have to do is from 5 to 10 !!
Start of with a prayer on your lips, a white board, Pattu’s calculators, and an adviser. Chances are in about 5 years you would have learnt why you do not need an adviser. If the adviser is good he would have delivered good results by now and you would do away with the doubt of whether you need an adviser….
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