Ask somebody about retirement planning and they tell you that it is far away, it is too uncertain, it is…and lots more nonsense…then they come up with this:
Did you not write in your blog the following:
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.
Sure I wrote. I am so so happy that you read that. Now see what I have to say:
You CANNOT CONTROL any of the factors mentioned above nor can you guess those numbers (it is an exercise in futility)..so you have to be ready for death (keep your will handy, TODAY) BUT make sure as though you will live to 110 years.
So what should you do?
Here are the MUST DO options for increasing the ending retirement balance the most:
1. Start saving earlier (I have said this a trillion times I am surprised you are not sick, BUT, still not doing)
2. Get a higher salary (or a higher income anyway)
3. Increase INCOME by 11% annually rather than 9%
4. Save more, and convert savings to Investment (sip did I hear?)
5. Maxing PPF is a bad idea before your age of 55. Till then put much more in ELSS.
6. Use a sensible adviser who helps you cut costs in the long run.
7. Get financially literate
8. Retire later, and help the Power of Compounding.
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