Types of investment in Mutual Fund

The Process of Retirement Planning Aims

Retirement planning, in a financial context, refers to the allocation of savings or revenue for retirement. The goal of retirement planning is to achieve financial independence.

The process of retirement planning aims to:

  • Assess readiness-to-retire given a desired retirement age and lifestyle, i.e., whether one has enough money to retire
  • Identify actions to improve readiness-to-retire
  • Acquire financial planning knowledge
  • Encourage saving practices

Obtaining a financial plan

Producers such as a financial planner or financial adviser can help clients develop retirement plans, where compensation is either fee-based or commissioned contingent on product sale. Such an arrangement is sometimes viewed as in conflict with a consumer’s interest, and that the advice rendered cannot be without bias, or at a cost that justifies its value. Consumers can now elect a do it yourself (DIY) approach. For example, retirement web-tools in the form of a calculator, mathematical model or decision support system are available online. A web-based tool that allows client to fully plan, without human intervention, might be considered a producer. Key motivations of the DIY trend are many of the same arguments for lean manufacturing, a constructive alteration of the relationship between producer and consumer.

Personal planning

  • Preparing working environment.
  • Prepare mentally and plan to involve in hobbies and develop new interests to be engaged with retirement life.
  • Plan and prepare for the transition impact of retirement with home life.
  • Plan how active you want to be when you reach retirement age, engage in part-time, contract work or in activities that doesn’t overextend oneself.
  • Stay connected with the community.
  • Learning to appreciate leisure, moderating work-life balance and to say no without regrets.

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