Retire From Work, Not From Life

                             Retire From Work, Not From Life

  

Saagar is a 20 year old guy who has just entered the corporate world by joining a MNC company. As part of the induction process Saagar has to attend an investment awareness session on tax planning. At this age thinking about tax planning, investments and retirement planning is the last thing on Saagar’s mind as he has just started earning.

To most of us retirement is going for vacations, spending time with grand children, playing golf, visit to pilgrimage places like Haridwar or to some it may mean relaxing on a beach with nothing on mind etc. This is the rosy part of it. But the big question we need to ask ourselves is whether we have made enough provisions to enjoy that kind of lifestyle post retirement?

What lot of us fail to realise is that retirement has a dark side also. Retirement along with it brings no income phase, rising cost of living (inflation) and soaring health care costs. Does this scenario leave you worried? Don’t worry there is help at hand. Little bit of prudent and disciplined financial planning can ensure that you can leave aside your worries and enjoy retirement playing golf, a sport which is believed to be meant only for the higher class.

Retirement planning helps a person maintain the same standard of living that he was enjoying before retirement. Even though the person himself stops working, the corpus accumulated by him in his pre-retirement years continues to work for him and earns decent returns to sustain his expenses during his retirement years

Now Lets Understand Concept Of Early Investments For Your Retirenment.

The Following Chart illustrate Two Investments Programme With Annual Investment Of Rs 20,000  One Individual Start At Age 22 and Quite Investing At age Of 30 and Other Start Investing At Age 30.

Age	Early Investment	Age	Late Investment
22	20000	22	0
23	20000	23	0
24	20000	24	0
25	20000	25	0
26	20000	26	0
27	20000	27	0
28	20000	28	0
29	20000	29	0
30	20000	30	0
31	0	31	20000
32	0	32	20000
33	0	33	20000
34	0	34	20000
35	0	35	20000
36	0	36	20000
37	0	37	20000
38	0	38	20000
39	0	39	20000
40	0	40	20000
41	0	41	20000
42	0	42	20000
43	0	43	20000
44	0	44	20000
45	0	45	20000
46	0	46	20000
47	0	47	20000
48	0	48	20000
49	0	49	20000
50	0	50	20000
51	0	51	20000
52	0	52	20000
53	0	53	20000
54	0	54	20000
55	0	55	20000
56	0	56	20000
57	0	57	20000
58	0	58	20000
59	0	59	20000
60	0	60	20000
61	0	61	20000
62	0	62	20000
63	0	63	20000
64	0	64	20000
65	0	65	20000
Total Invested	180000		700000
Ammount Avilable At Age 65	1,56,02,980		86,33,269

So If You Start Saving Early, You Accumulate More Even While Investing Less , Investing Only For 8 Years Where as Who Keep Delaying Investing , Has to Pay more.

The Moral Of this is Whatever Amount You Invest, But Investing Early Makes Dramatic Difference. The Sooner You Invest , Longer Your Money is allowed to Grow at compounded rate.