What lies do we tell ourselves about our retirement plans?

  1. I have a pension by my employer: even assuming that you have a nice indexed pension from the government, be ready for the indexing vanishing in a few year’s time. Once the burden becomes too big the bureaucrats will find a way of reducing the indexation or doing something like that. They did it to the army pension. Not sure what, but the indexed pension is too big a burden, be careful. Assuming that you have a pension, remember, you still need to supplement it with some equity at least.
  2. ‘I am self employed’ so I will NEVER retire: it is all right to be self employed but will you go on working till you are 82? why? Why not take time off? What about physical requirement to retire? what if you have dementia at age 68? and live till 92?
  3. Our company does not have a Provident fund scheme: So what? your ctc is good enough for you to create your own pension plan right? when will you stop pretending that your company PF owes you a retirement plan?
  4. I will not be in this company for long, so I have not transferred my pension.
  5. The mutual funds, unit linked plans, brokerage in brokerage firms – are all very expensive. This is true, but hey what choice do we have? Do you have the ability to create your own Portfolio without professional help? and if you want professional help will you get something cheaper AND well regulated? So what are you waiting for?
  6. Both the Templeton and the UTI plans have so much debt, why should I buy them? See I told you there is no good pension plan!! – hello I said ‘retirement hamper’ not a particular scheme.
  7. My current expenses are too high: With 2 children in college/school and parents to support I am unable to save/ invest any money. Well sir, with a CTC of 76 lakhs if you cannot save NOW when will you save ENOUGH to SUPPORT THIS LIFESTYLE?
  8. I am saving for my children’s education / children’s marriage / 2nd house…: My take ” which one of these is going to feed you in your retirement?
  9. I do not understand Investing: well, well, As long as you understanding start early, compounding, equity, that is good enough to start investing for retirement. You do not need a PhD in retirement planning to start investing.
  10. I am too young to start investing for retirement.
  11. I am too old, to start investing for retirement.

1 short of a dozen!!

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  1. Franklin & UTI has delivered 12+% returns over the last 15-20 years. It is much better than PPF. While Both are Good options, I actually prefer Franklin because it’s closer to PPF with 60-65% debt. Its equity portion is also conservatively managed. If I want more equity, I can always go for ELSS funds.

  2. Sirji, salary of 76Lacks. I can barely touch 15L and many around me are not even on 14L. So for us lesser mortal any article sir

  3. I totally agree. Each one of us has seen our parents or ourselves invest, its important to save and plan for one’s retirement too. That’s why i have invested in xyz Life xxy plan, which is a very good retirement plan that offers the flexibility to choose policy term that suits your retirement needs. http://www.subramoney.com

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