Cash-Rich Retirement Life

Retirement in My Way_CashRich Surojit

The word "Retirement" has been derived from the Old French term "Retirer," means "to Withdraw" or "to Retreat". Gradually, over a period of time, the term "Retirement" evolved to include the idea of withdrawing someone from the workforce or active employment life.

But as we all know that retiring from active work life means a break in the active flow of money in the family which is going to miserably hamper someone's livelihood. As we grow older, certain things are inevitable in life which are something as follows:

          a) Our stamina decreases.

          b) Our medical dependency increases which incurs extra unprecedented expenditure.

          c) With events like Retirement decrease the regular cash flow as well.

          d) With irregular cash flow and increasing inflation rate,

              we start compromising our Standard of Living (SOL).

          e) With irregular income, we are compelled to become dependent on others.

           f) And all the aforesaid eventualities snatch our Peace of Mind.

I believe 'Peace of Mind' is something that is Priceless and to ensure this, we should start early. It is said that “Starting Early” is the key to success. Here I am emphasizing to start your INVESTMENT journey from the very 1st day you start earning.

We generally start earning from the age of 25 yrs. Yes, exceptions are there but if we consider 25 Yrs. as the standard age to start earning and 60 Yrs. as the age of retirement then we have 35 years of time to ensure a Cash-Rich & Luxurious Retirement Life.

Here comes the utility of ‘Man at Work & Money at Work’. As long as we are working, we are earning and maintaining our family’s standard of living, but the moment we are retiring, our Money that we have saved as our Retirement Corpus start working for us and maintain our family’s standard of living. So, to achieve this retirement corpus, we should start investment from the very early stage of life. Young guys may cut joke at me hearing this, but I am not going to mind anything because they are unaware of the investment mechanism. When you are entering market is immaterial, How long you are invested in the market is the prime factor to get the compounding effect.

Can anyone calculate that if a person starts investing a small amount of Rs. 500/- p.m. for a long 35 years of his/her work life, how much can be his/her retirement corpus? Here I have used the term ‘INVESTMENT’ and not ‘SAVINGS’. I hope we all know the difference in between these two terms! If not, please check my videos on You-tube or go through my article on this.

Few Key Factors while Planning for Retirement Corpus:

The Retirement corpus would be Rs. 2 Crore approximately. Mindboggling! The investment in 35 years is 2.1 lacs only. This is not a magic; this is the power of compounding for long 35 Yrs. Now with this 2Cr. of retirement corpus, I can seamlessly earn 16 lacs p.a. and at the same time gain capital over and above 2 Cr. That is a different calculation altogether, for which you may go through my You-tube videos or other articles from time to time.

           a) Plan Your Retirement Age. Fix up a date for your Retirement.

             Ex. 15th of Aug,2050.

          b) Start Early and don’t even dare to touch that amount before retirement.

          c) Increase your investment by at least 10% every year to beat the inflation in long term.

          d) While planning for your retirement corpus, please do take future inflation under

            consideration as the cost of living is increasing every day.

         e)  Calculate your Human Life Value (HLV) and Protect your Income by any Income 

             Protection Solution. If you don’t know how to calculate your Human Life Value , kindly

             check my video on HLV Calculation on You-tube or go through my article on HLV

             calculation. It is highly recommended to go for an Income Protection Solution while

             planning for Retirement Life/ Retirement Corpus, as any untoward event like Death,

             Disability etc. may hamper the entire planning and your as well as your better half’s

             retirement life or your entire family’s future may be at stake. So do opt for an Income

             Protection Solution.

        f)  I would strongly recommend all of you to go for a Health Insurance for you as well as

            your dependent family members, as any unprecedented medical emergency can eat 

            up all your savings and properties at one go.     

        g) Always remember to consult openly with a professional Retirement Consultant as it is

            to be admitted that you are expert in your domain and you have only one life which is 

            precious. So do not try everything on your own, take expert opinion as you must admit 

            that every precious thing demands a certain amount of cost, in fact neither anything

            is free in this universe, nor any effort is a waste.

Best Wishes,

Surojit Malakar,

www.surojitcashrich.in