Retirement planning for Financial Freedom

Retirement planning for Financial Freedom

Retirement Planning: A wonderful Journey towards Freedom

The market has made a significant rebound since the dip in March. However, we should still proceed with caution and be wary that all of the economic effects of COVID-19 have not been felt fully.

To have a comfortable, secure and fun-retirement, you need to build the financial cushion that will fund it all.

Planning for retirement starts with thinking about your retirement goals and how long you have to meet them. Then you need to look at the types of retirement accounts that can help you raise the money to fund your future. As you save that money, you have to invest it to enable it to grow. The surprise last part is taxes: If you’ve received tax deductions over the years for the money you’ve contributed to your retirement accounts, a significant tax bill awaits when you start withdrawing those savings. There are ways to minimize the retirement tax hit while you save for the future—and to continue the process when that day arrives and you actually do retire.

We’ll get into all of these issues here. But first, start by learning the five steps everyone should take, no matter what their age, to build a solid retirement plan.

5 lessons for investors from Dhoni’s successful career for Retirement:

1. Patience is virtue:

If you look at Mahendra Singh Dhoni’s 16-year-long cricket career, you will notice how he remained calm during the most crucial moment in a match. He is not touted as India’s best finisher for nothing.

Being patient during times of uncertainty in the markets is the key. Your investment in small-saving schemes or bank FDs or stock depends on several factors. Whether it’s a job loss or sudden market crash, you have to remain composed while handling your investments. If one stock of yours does not perform well, don’t panic. You will always have the option to switch it considering your financial goals.

2. Ups and downs, part of (investors’) life

Like everyone else, Mahendra Singh Dhoni had ups and downs in his career. The 39-year-old cricket star debuted in the ODIs in 2004-05 with a duck. But he did not let one bad performance affect his career. “Ups and downs are part of a player’s career. What is important is how you come back into form after a lean patch,” the Ranchi born cricketer once said.

Similarly, a bad day should not affect your investments. If you consider all the factors before an investment, be confident about achieving your goals.

3. Have faith in yourself:

If you are an avid cricket fan, you must remember the time when MSD handed the ball to Joginder Sharma during T20 World Cup final in 2007. Remember how Dhoni sent Rohit Sharma to open before the 2013 Champions Trophy in England? MSD has always believed in himself on the field.

While making investments, if you are convinced about an asset, fund or scheme, go ahead with your belief. It is important to do research before any investment, but you should also have faith in your investment decisions. You can also take help of an advisor and monitor your fund’s performance.

4. Know your strengths

Mahendra Singh Dhoni knows his strengths and always sticks to them on the field. “He is a great competitor and keeps his composure better than anyone, especially under pressure. He is a very smart player, who is calculating,” Australian cricketer Michael Hussey once said.

Knowing your strength can also help you in the financial markets. One should keep a tab on own their budget, goals and investments than blindly following expert views or market trends.

5. The right guidance:

Football was Mahendra Singh Dhoni’s first preference during his school days. He used to play football for his school team. Keshav Ranjan Banerjee, the cricket coach at the DAV Jawahar Vidya Mandir school in Ranchi introduced ‘footballer’ Dhoni to cricket. Over the years, several coaches have trained Mahendra Singh Dhoni and helped him to achieve all the success.

In personal finance too, a financial advisor can help you find the right investments to reach your goals. Financial advisors offer unbiased advice while investing. So a little guide can help you to go a long way.

 

KEY TAKEAWAYS

1. Retirement planning should include determining time horizons, estimating expenses, calculating required after-tax returns, assessing risk tolerance, and doing estate planning.

2. Start planning for retirement as soon as you can to take advantage of the power of compounding. Start investment at an early age and only with the advise of Financial advisor.

3. Younger investors can take more risk with their investments, while investors closer to retirement should be more conservative.

4. Retirement plans evolve through the years, which means portfolios should be rebalanced and estate plans to be updated as needed.

 

Don’t make Retirement planning a boring part rather make it an exciting process and become free from worries about future financial issues and enjoy life with freedom !!

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