Off lately I came across an elderly person, in his early 70s, a stage of life when one would want to feel financially secure and heavily depend on his life’s savings, realized what he is left with in the retirement corpus would now barely serve for next 4-5 years if he continues to maintain current lifestyle. And compromising on the way you have lived your life, at the last stage, is the rudest thing that can happen to anyone.
Well, we all are highly Susceptible to these 3 Retirement Blunders:
- Outliving your retirement corpus: Not having a foresight on your expenses, Inflation, Inability to tackle low Interest rate regimes, minimize Taxation and being too conservative with investments have the potential to ruin your retirement dreams. Ironically most investors are just clueless of their retirement corpus which will help them play their last innings of 25-30 years in peace and abundance.
- You don’t factor Health care expenses: Scores of treatments are beyond health insurance cover and you will need it, like hearing aids, dental treatment, home care, doctor visits, they sound cheap but are expensive and can bite away a large pie from your monthly budgets.
- Choosing the wrong Asset: – Investors have lost their hard-earned life’s savings in financial scams, right from it being top-Rated Corporate Bonds, junk shares, etc. One needs to tread with caution at this stage because losses are irreversible. Every step must be calculated for risk undertaken and expected rewards.
A little bit of careful planning coupled with foresight can save you from these retirement troubles. And don’t forget: Our child’s income is NOT our annuity income.