Why ought to retired folks undertake monetary planning?

NEW DELHI: A primary monetary plan contains sources of cash and provisioning for bills. As you advance into monetary planning, bills are prioritised to optimise financial savings. Many folks assume that monetary planning is just for working people or youthful ones. But it’s as essential for retirees.

Santosh Joseph, founder and managing companion, Germinate Investor Solutions LLP, stated, “Whether you are working or retired, the rules of the game don’t change. We have to ensure that our money is optimised, i.e. our expenses and income must be well balanced. Even though one may not have an income and have not saved enough money for retirement, they need to understand how to efficiently save and invest that money to fund their income during retirement. Secondly, whether you are salaried or retired, the inflation or the devaluation of the rupee is a real phenomenon. Your value of money is at stake. Therefore, keep in mind that irrespective of whether you are young, old, working or not working, the inflationary effect is common for all of us.”

But when you retire, potential sources of earnings dwindle. Therefore, it’s higher to plan nicely and make sure that you do not compromise in your lifestyle and are in a position to take in the rise in dwelling prices.

“Most retired people are worried because they feel insecure that they don’t have an external income…When you know how much money you need and have a built-in enough safety margin, you can live extremely stress-free or tension-free during retirement. Secondly, when you know how much corpus you have, what yield the corpus is giving and how much money you need, you can be a little more relaxed or a little more generous with your month-on-month expenses as far as your retirement expenses are concerned,” Joseph stated.

With a retirement corpus, one can plan for holidays, take up philanthropy, amongst others. Moreover, when you make investments your financial savings nicely even after retirement, creating the correct and proper kind of property ensures your individual security and safety. Also, it leaves behind a superb legacy for generations to return.

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