Financial planning means making plans relating to finance in future and in this article after retirement. That is planning for the availability of finance to meet the requirement at that stage of time when the person feels the expenses may rise or the income may decline. Mostly such financial planning is done for the stage of retirement. Retirement means, the permanent holiday from job or work due to the coming of the age, which is considered maximum age limit for that particular work or job.
Factors or life experiences effecting thought and then decision making for financial planning for retirement:
The need of financial planning for retirement rises because of the many life experiences either sweet or sour, that a person goes through in the early stage of his/her life. Many factors or life experiences effect the thought and decision making of the person in regard to financial planning for retirement. Following are the three main factors that result in effecting the decision making of the person in the way of financial planning for retirement. Learning from the experiences of the senior's. Passing through a debt problem due to immediate need of finance that may be due to mishap or any other need. Availability of extra cash in the present that may be due to less expenditure or more income. When a person passes through any of the above stated life experience or factors than he/she is forced to think on the issue of financial planning for retirement.
Benefits of financial planning for retirement
There are a number of benefits and hardly any loss in making financial planning for retirement. These numerous benefits of financial planning for retirement are as follows. A sense of self-dependence remains through out the life. Extra income source can be generated after retirement. The expenses on medical check ups, operations and medicines can be met easily without taking help of others. In case of trait by the children, a person can make full arrangements for his/her living and meet all the day to day expenses of food, shelter, and clothing. The savings for that time may help in meeting some immediate financial requirement that may arise due to some mishap or any other reason. The dream of looking for respect for us in the eyes of others fulfills for as long as we live.
Methods of financial planning for retirement: A number of methods are available for the financial planning for retirement. These are stated below.
Retirement plans
A number of retirement plans are in available in our world. All these plans are meant to
give the best service to the person after retirement. These plans are as, Life insurance plans. A life insurance plan is a plan in which a person is expected to deposit a prefixed amount after fixed intervals. During these intervals, if the person dies due to accident or natural death than the total amount of insurance will be given to his/her life. After the maturity of the life insurance plan, the amount deposited is given back to person with good interest amount. After retirement, a person can use the whole amount to meet the day to day needs and other expenses of his/her own and the family. Thus a person is still stays as a pillar for the family and does not allow others to consider him/her as overweight for the family. Pension plans. A pension plan is a plan in which a person is expected to deposit a prefixed amount, but the difference from the life insurance plans rise here after the maturity, when the person is not given the whole amount. Instead a fixed amount is given to the person on monthly basis to meet the daily needs and other expenses. After retirement, a person may find unable to use the saved money for further income generation. Even the need of lump sum money may not arise at the time after retirement. In that case a fixed amount, good enough to meet the day to day expenses and other needs, is given to the person. It should be noted here that this is done as per wish of the person and the option can be given to the person to take out the whole amount when he/she may feel necessary.
Good investments
Making good investments can also help a person in generating good income even after retirement. The whole life experience of earning helps a person to earn better even after retirement. Many good investments that can be made to meet the financial planning for retirement are as follows. Investing in stocks. Investing in stocks helps in getting better returns in future. Although the requirement stays that the selected stock should be good enough to give better returns. Also the person investing in should have enough experience and knowledge of doing such work. Buying land or house.
Buying land or house helps in settling down easily after retirement. By buying a house, a person can live anywhere in the world where he/she wishes. And by buying a land a person can sell it for good profits or even can use it for doing some business.
Medical insurance
Medical insurance helps in aiding a person financially when any problem relating to health arise. Problem like a person may have to hospitalize, operate and even have to bear other medical expenses due to diagnosis, medicine etc. Through medical all the hospital and medicinal bills are paid by the medical insurance company.
Conclusion
In the end, a number of factors effect the thought and decision making for the financial planning for retirement. A number of methods can be used for making financial planning for retirement and along with that a number of benefits and hardly any loss are seen in this process. Thus taking a decision on making financial planning for retirement always proves to be worth it.
Factors or life experiences effecting thought and then decision making for financial planning for retirement:
The need of financial planning for retirement rises because of the many life experiences either sweet or sour, that a person goes through in the early stage of his/her life. Many factors or life experiences effect the thought and decision making of the person in regard to financial planning for retirement. Following are the three main factors that result in effecting the decision making of the person in the way of financial planning for retirement. Learning from the experiences of the senior's. Passing through a debt problem due to immediate need of finance that may be due to mishap or any other need. Availability of extra cash in the present that may be due to less expenditure or more income. When a person passes through any of the above stated life experience or factors than he/she is forced to think on the issue of financial planning for retirement.
Benefits of financial planning for retirement
There are a number of benefits and hardly any loss in making financial planning for retirement. These numerous benefits of financial planning for retirement are as follows. A sense of self-dependence remains through out the life. Extra income source can be generated after retirement. The expenses on medical check ups, operations and medicines can be met easily without taking help of others. In case of trait by the children, a person can make full arrangements for his/her living and meet all the day to day expenses of food, shelter, and clothing. The savings for that time may help in meeting some immediate financial requirement that may arise due to some mishap or any other reason. The dream of looking for respect for us in the eyes of others fulfills for as long as we live.
Methods of financial planning for retirement: A number of methods are available for the financial planning for retirement. These are stated below.
Retirement plans
A number of retirement plans are in available in our world. All these plans are meant to
give the best service to the person after retirement. These plans are as, Life insurance plans. A life insurance plan is a plan in which a person is expected to deposit a prefixed amount after fixed intervals. During these intervals, if the person dies due to accident or natural death than the total amount of insurance will be given to his/her life. After the maturity of the life insurance plan, the amount deposited is given back to person with good interest amount. After retirement, a person can use the whole amount to meet the day to day needs and other expenses of his/her own and the family. Thus a person is still stays as a pillar for the family and does not allow others to consider him/her as overweight for the family. Pension plans. A pension plan is a plan in which a person is expected to deposit a prefixed amount, but the difference from the life insurance plans rise here after the maturity, when the person is not given the whole amount. Instead a fixed amount is given to the person on monthly basis to meet the daily needs and other expenses. After retirement, a person may find unable to use the saved money for further income generation. Even the need of lump sum money may not arise at the time after retirement. In that case a fixed amount, good enough to meet the day to day expenses and other needs, is given to the person. It should be noted here that this is done as per wish of the person and the option can be given to the person to take out the whole amount when he/she may feel necessary.
Good investments
Making good investments can also help a person in generating good income even after retirement. The whole life experience of earning helps a person to earn better even after retirement. Many good investments that can be made to meet the financial planning for retirement are as follows. Investing in stocks. Investing in stocks helps in getting better returns in future. Although the requirement stays that the selected stock should be good enough to give better returns. Also the person investing in should have enough experience and knowledge of doing such work. Buying land or house.
Buying land or house helps in settling down easily after retirement. By buying a house, a person can live anywhere in the world where he/she wishes. And by buying a land a person can sell it for good profits or even can use it for doing some business.
Medical insurance
Medical insurance helps in aiding a person financially when any problem relating to health arise. Problem like a person may have to hospitalize, operate and even have to bear other medical expenses due to diagnosis, medicine etc. Through medical all the hospital and medicinal bills are paid by the medical insurance company.
Conclusion
In the end, a number of factors effect the thought and decision making for the financial planning for retirement. A number of methods can be used for making financial planning for retirement and along with that a number of benefits and hardly any loss are seen in this process. Thus taking a decision on making financial planning for retirement always proves to be worth it.
