Retirement Planning Guidelines

How to start retirement planning

Financial security

• You have a home and you have paid your home loan
• your food bill is taken care. Means you need not have to worry for future food bill
• Clothing and basic need
• Your utility bills are paid for
• Your insurance is taken care even for future
• Other expenses - such as holiday, travel is taken care
• Other

Retirement planning /Financial planning

• Mortgage payment
• Food bill
• Clothing bill
• Utility bills - gas, water, electricity, Cable,
• Insurance payment
• Transportation, holiday or other cost
• Social expenses - gift you wish to give to kids, grand children, festival, marriage of Children, relatives, donation
• Other expense -luxary expenses

How to calculate above cost

• Keep current rent or mortgage payment (or plan how you will pay it before retirement)
• Calculate current grocerry cost
• Determine your current cost of clothing, entertrainment. Divide it in half (Assuming you will cut this in half post retirement)
• Keep utility bill same
• Calculate insurance cost and multiply by 1.5
• Do same for other cost

How to generate money for Financial expense

Tips for saving for retirement

Retirement is one thing which comes to everyone who is working in any office; it means their tenure comes to an end with the company or the organization. Many government organizations have already fixed the age of retirement which is 60 or 62 years. So, it is very common thing to those who are employers of any company. They have to think about their retirement when they are approaching to their retirement age seriously about the savings. They have to think in this regard as they need to do savings when almost 10-15 years are left for the retirement so that a good amount can be collected in your account and you are going to make your life simpler with that money.

In order to start saving for the retirement, one has to take care of their expenses and make them shorten for the purpose of savings. Some of the factors should be taken into account when planning for the saving for the retirements and they are as follows:

Cut down your bills like mobile bills or other bills such as going to restaurants daily. This is very important to take care not to spend your money for the sake of taking coffee, lunch etc everyday outside your home. Just save this money as they will latterly help you in your retirement age. These small type of savings of hundreds dollars of not spending on these useless things can make the balance stronger.

Open a saving account not for the purpose of retirement but it also helps you when you are in need you and something goes wrong. You need money then this account will help you. Cut your unnecessary shopping as these little saving will pay you in longer times. Always set a budget for your expenses in the initial days of the month so that you can even save more money than you usually do every month if enough money is left after all the monthly expenditures.

Have a brief talk with your employer about 401 K plan; sometimes not all the companies have this plan for their employees. If it is there in your company then get enrolled for this plan from the beginning as this will help in saving for the retirement purposes. In this plan, some of your salary part gets deducted every month so that after your retirement you will get the huge amount which benefits you. If it is not there in your company then there must be some other retirement account facility must be there for the employees; so, opt that for the sake of savings.

Plan to work part time to earn money so that you can adopt that job after the retirement as a source or earning. You spend your salary for the monthly purpose and save the part time salary for the saving for the retirement; this way can make a huge savings for the future.

Take the help of insurances and invest money in mutual funds as they will later or sooner give you good return. These savings will help you at the age of retirement.