15 More Retirement Blunders
Once your book goes into print, you suddenly find more material which should have gone into the book! Here are some Retirement blunders…
- Postponing Retirement Contribution: But Subra I am only (!) …why should I start so early? Good question. Try playing catch up at 50, retiring at 55 and living till 95. He guys the math does not add up. Go and learn your tables.
- Stock picking for Retirement: Many people with terrible stock picking skills think that their ‘portfolio’ will give them enough money to retire.
- Banking on being able to work till….they drop dead. I did meet a man who is 67 and still working – and he needs to be working. He cannot afford to hang his boots. Wife is 61 and giving tuition to the kids in the building. Just can’t afford to retire.
- Living for today with earnings of tomorrow – accumulating debt. Saw an Uber driver with home loan, son’s education loan, car loan, and daughter’s marriage loan. Hopes to reduce debt when son finishes his ‘MBA’ and starts bearing the burden. Retirement? you got to be joking right?
- Ignore all Retirement tools – calculators, books, worksheets – as if it does not pertain to you!
- Asset allocation? what is that?
- Putting too much into equity
- Putting too little into equity
- Only investment is in 80 C -thanks to HR chasing you. No clue why did you invest!!
- But Subra my expenses will dramatically reduce after I retire, will it not? Wow.
- Changing cars every 5 years. Why not? I am eligible for a bigger car – see my HR letter!
- Not understanding employer traps
- I have 18L in my PPF – is that not sufficient at my age of 48? (are you shocked too?)
- Helping your adult kids before you have your own retirement plan!
- Compounding? I learnt it long ago in school…what about that?
I could go on….but here
Ramesh
can you elaborate point 12
Pramod Kumar
Sir,
Can you please elaborate in point 12, “Employer Traps” ?
Krish
Point 4 is the story of most of the working middle class. You visit the bank and story is obvious. 95 out of 100 customers are in que to seek loan. Every type of loan (House, Car, Electronics, Study, Marriage, Home improvements, Gold) is maximised and exhausted. Many of them are eagerly going for holiday loan or holiday resort loans as well. Still, people are awaiting for new type of loan product.
Ravi Mathai
Subra Sir.. concise and to the point as always.
Rajnikant V Gajjar
I am sure ,being in such prestigious advisory capacity,you must have come across lot many reasons to ignore Retirement Planning.
Make up a series,with fallacy exposed.
Will be good learning as well.
There are thousand excuses for not doing a job,but only reason for doing same job very well.
One reason outweighs thousand excuses.
Madikeri Abu
We (me and wife) have sacrificed so much for our children and we are sure they will look after us in our old age, so we don’t need to plan for any retirement. Our kids are definitely not like others in our neighbourhood.