Retirement and Financial Planning

Retirement - this conjures up images of a leisurely lifestyle, with perhaps walks by the beach or in the park.

Retirement and financial planning usually occur together. For the simple reason, one simply does not occur without the other.

Various studies have shown that 95% of the population will not have enough funds in their accounts to qualify as what is considered financially independent by the time they reach age 65. A good proportion of these 95% will still be broke when they are supposed to be able to enjoy their life, and will have to find means to sustain their daily livelihood.

It is a sad situation, but it is a fact.

There are various calculators in the market that aim to help you determine your financial needs, and we have reviewed some 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 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.

Time can work for or 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 will likely be a very good testimony to this principle.

In fact, the compounding effect of time has been described as the eighth wonder of the world! 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.

Just do it. Click here for more information on retirement and financial planning.