Many complain of not meeting their long term financial goals. In this article I am going to talk about 4 such indicators which will determine how sensibly are you utilizing your retirement money? Thereafter you can take the necessary steps to be on the right path and achieve you financial goals efficiently.
Are you aware about the next steps? | How sensibly are you utilizing your retirement money?
There are many cases where working executives are not aware or don’t concentrate on the kind of life they want to live post retirement. Regardless of your career situation, it’s important to give a careful thought on your retirement.
The basic things you must check out are as follows-
- At what age you plan to retire?
- What sort of lifestyle you intend to have when you retire?
- What steps you’re going to take about funding it?
If you’re married then it’s advisable to remind your spouse about each other’s retirement plans.
Are you saving enough? | How sensibly are you utilizing your retirement money ?
Getting loans for basic necessities like house is fine and is warranted. However, taking loans for expensive purchases like gadgets and cars will pile up your debts. It will also affect your credit score negatively thus decreasing your chances to get loans during emergencies. Also you will face difficulties to pay for your equated monthly installments.
Therefore, it’s crucial to save more money than spending it unnecessarily. Hence, start saving from now itself and avail the magic of compounding to see your cash reserves increased in a certain period of time.
Get the myths out of your mind | How sensibly are you utilizing your retirement money ?
Some professionals spend more than saving to take the optimal advantage of various tax provisions. They feel that this minimizes tax liability. However, it will cost you worth lakhs of rupees in the long term and can leave with no money when required the most!
Some don’t invest due to unwillingness of filling up forms and following other formalities. In this case, it’s sheer procrastination which can again cost lakhs of rupees in long term and can make your retirement days difficult.
Hence, it’s advisable to engage with a financial counselor who’ll guide you efficiently and start investing.
Using your retirement funds sensibly | How sensibly are you utilizing your retirement money ?
Using your PPF money to build a home or marriage of children just to get praised by the guests is not sensible. There are other options for that. However, it you’re frequently drawing money from your retirement funds, you’re risking yourself of under saving for your retirement. Hence, utilize your retirement funds sensibly.
Hence, now you know the signs which will determine your next steps towards a healthy and wealthy retirement life and fulfill your goals.