Do you have enough money to retire? This is the most frequently asked question. This is the most frequently asked question. When I made video on retirement planning my friends asked me whether I have enough money to retire? Is there any method to evaluate it? Let us discuss some points relating to this. HOW MUCH YOU NEED? We take a simple approach to it. We will maintain the same lifestyle in our retirement too. So friends welcome to the channel. Subscribe to the channel and press the bell icon so that you donot miss any video. Today we will discuss the points which are to be kept in mind while doing financial planning How much we need for retirement is very difficult to answer is very difficult to answer But we take an easier approach that how much we spend today and will maintain the same lifestyle during retirement On an average if one spends Rs. 50000 p.m. On an average if one spends Rs. 50000 p.m. and retirement is of 30 yrs and retirement is of 30 yrs he will need Rs. 1.8 crores. Now you will ask about inflation cost We assume that the inflation cost shall be set off by the growth on our money as whole money shall not be spent on a single day. KEEP IT SIMPLE KEEP IT SIMPLE Look for your spending habits Do not spend unnecessarily. If you spend from your earnings only and do not touch your savings You will have enough money when you retire. Three points to consider in retirement planning are: Whether our corpus is invested well to grow aggresively in value Whether our corpus is invested well to grow aggresively in value Whether our income needs in retirement are well thought of and provided for? Whether our income needs in retirement are well thought of and provided for? Whether the amount we draw from the corpus Whether the amount we draw from the corpus Whether the amount we draw from the corpus and the amount we keep invested are well balanced? and the amount we keep invested are well balanced? Generally, PF is considered a good investment for retirement planning the employer also contributes an equal amount When our savings is matched by our employer we have more money to work for us. Only the demerit is that the money gets fixed for a long term but give good returns. We cannot change PF rules, but we can diversify our income to different investments and gain good returns This can be done thro’ Simple equity fund or ETF If you don’t have much knowledge about equity this is a good option for you. There is no need to select a particular stock nor monitor it simply investing in index is adequate to build a decent retirement cprpus. Next is what shall be our income during retirement? Generally people think we will have to live in minimal expenditure but this should not be the situation If we build a home before retirement we will be saved from a huge expenditure of house rent during retirement During retirement, our priorities for spending change You may develop some new interests like travel and tourism or exchanging gifts It is difficult to decide every thing in advance some exps. may arise all of a sudden then we will be in a tension of short of money before retirement use the income generated on your money for retirement. use the income generated on your money for retirement. Try not to touch the main corpus How to save money for retirement is completely yours choice If you buy a big house and save less now it may happen that you may not save big because this big house may not give you money in future but you will be saving towards rent So i will suggest you to diversify your income in different investments so that you have a big retirement corpus.