Retiring soon? Most people view retirement as a time for a leisurely lifestyle, with walks by the beach or in the park. However, the reality is not always so rosy. Retirement does not occur just like that. It can only occur with proper financial planning. Retirement and financial planning have to go together.
Various studies have shown the vast majority of the population (some say as high as 95%) will not have enough funds in their accounts to retire. In effect, the vast majority will not be able to become financially independent by the time they reach age 65. They will still be broke at the age when they are supposed to be able to enjoy their life. They will have to find the means to sustain their daily livelihood. It is a sad situation, but it is a fact.
There are various tools and calculators in the market that aim to help you determine your retirement needs, and we have reviewed some of them, which may be useful to the individual. A caveat though - simply calculating how much you need and financial planning will not do anything if you do not implement the financial plan.
Planning should start as young as possible. This will allow your money and funds to grow through your investments - you should have an investment portfolio that will grow large enough to fund your needs.
Start late, and the time factor can work against you. Why do we say that? The simple reason is that the compounding effect of time can make a huge difference to the size of your portfolio. Warren Buffet, said to have started very young in investing, will likely be a very good testimony to this fact.
In fact, the compounding effect of time has been described as the eighth wonder of the world! The results and impact on the size of your portfolio can be very dramatic! So do start planning as early as possible. Get your personal financial plan in place. If you have been procrastinating, start now - now is always better than later, and later is better than never.
Seize the day! Just do it.
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