Financial security – one reason why most of the people want to invest their money in something fruitful. Work hard today, invest smart and live a comfortable life after your retirement; an average person’s goal. However, with the rising inflation and extremely volatile markets, how can one calculate if their financial assets will last through their retirement years?
Perhaps, the amount that seems appropriate today will not suffice tomorrow because of the change in lifestyle, shift in economy, or any other reason. So, what does one need to do to ascertain that they have invested the right amount in the right financial products?
You have to adopt a two-pronged strategy for peaceful retirement years and to ensure that your savings do not run out. First, if you are still working, then you must assess your income, risk quotient, future requirements and also factors like inflation trend in the country, life expectancy, etc.
Once you have chalked down all these things, you must calculate the amount that you need to save based on the current capacity and future outcomes. Also, always keep in mind that you save more than how much you actually expect to spend in the future.
Now, let’s talk about the second part of this strategy. Let’s say you have already retired and have a good amount of savings in the form of investments. Now is the time for you to plan your spending carefully. This is probably the first time in your life that you are not getting a paycheck and totally relying on your savings.
If you don’t plan your investments smartly then there’s a risk of running out of money in the middle of your retirement years. Now, having to depend on others is something you don’t want if you have worked hard your entire life.
Therefore, having a sound knowledge of managing one’s expenses is imperative. It’s a life skill in the 21st century and you cannot afford to lose out. So, don’t hesitate in acquiring the knowledge at any point in your life. At EPFP Catalyst, we understand your needs and have designed short-term courses to help you sail through.
You can opt for any one of our programs and learn the art of financial planning or choose our wealth multiplier scheme to watch your money multiply. Either way, you are a winner. Why wait? check out the details on our website!