Government doctors can work till 70
India can take a vital step towards the well-being of its citizens by increasing the retirement age of doctors employed in the services of the Central and state governments.
This article highlights the significance of prudent saving and investing, long-term planning, and making sure that retirement is everything but boring.
People view retirement as a period of leisure, enjoyment and relaxation. There is also fear of running out of money, health challenges, and staying mentally fit. This article highlights the significance of prudent saving and investing, long-term planning, and making sure that retirement is everything but boring. Sadly, few of our schools ever teach these crucial financial lessons, so many people are unprepared for their golden years.
The simple benefits of saving and investing wisely
Since childhood, we have been told that saving money is very important. However, investing is also just as critical for gradually accumulating wealth. If you let your money work for you through wise investing, it can lead to stress-free retirement and financial independence.
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Saving and investing regularly can have significant benefits in the long term. Through compounding, the returns on one’s assets can grow even more, resulting in a substantial increase in wealth over time. As one starts investing early in life, the money will have more time to compound, and one will be surprised by the total value of their invested capital.
Thinking about the long-term
Having a long-term outlook is necessary while making retirement plans. It requires some planning: a) how much money is needed annually in retirement, and b) how much time is left from now to retirement.
Long-term planning could entail spreading financial risk through diversification, considering inflation, and planning for future expenses (hobbies, travel or other interests), like buying a home or paying for education or additional medical expenses during retirement. Retirees who maintain a long-term view can better handle financial difficulties and ensure their wealth lasts them throughout retirement.
Never having a dull moment in retirement
Retirement ought to be a period of contentment, discovery, and happiness. Part of this is having financial security, but it’s also critical to continue doing things that make you happy and give you a purpose. Retirement can be engaging and rewarding if you invest in hobbies, travel, volunteer work, or engage in meaningful activities that need critical thinking, keeping your brain active.
Here, financial planning might be helpful. Everything costs money. It is crucial to ensure that one’s investment returns are more than one’s expenses so that one can easily accumulate money to follow one’s passions and interests.
Even after retiring from my corporate job for 9 years, I do stock market research to be familiar with what is happening in the markets and how my portfolio is doing. I make adjustments as needed.
I also spend considerable time daily on physical activities (such as fast walking, cycling, treadmill, yoga, gardening, etc.) and follow a healthy diet routine appropriate for my age. I travel a lot, visiting about 5 to 6 new places (locally and internationally) every year. I also have a YouTube channel, ‘Think and Retire’, where I post one video weekly. I have also published a book, Make Money Trading Leading Stocks, and I am writing another book. It is never a dull moment for me. My message is that you can still earn enough money in retirement to cover your living expenses and the cost of other hobbies and interests, do things you enjoy, maintain a healthy lifestyle and keep your brain active.
The education gap
Although prudent saving and investing have many advantages, these ideas are frequently absent from our school system. Speaking from my experience, we do not teach our kids about saving money, budgeting (spending less than earning), understanding the differences between needs and wants, how to look for bargain prices for the things you need, the effect of compounding, saving for the future, how to borrow money, the difference it makes by saving a small amount regularly over a long term, taxation, estate planning, and so on, what we consider plain financial literacy. Start early, even with a small amount, invest regularly, and keep it simple.
We all need to close this educational disparity to enable people to take charge of their financial destiny. We can provide the future generation with the knowledge and abilities they need to accumulate money and attain investment knowledge before and beyond retirement by introducing financial literacy into the school curriculum.
It is possible to make money and income in retirement to have a happy and satisfying retirement. Retirees can make sure they have the money to sustain the lifestyle they want by making prudent investments and savings, planning, and maintaining an active and involved lifestyle.
To adequately prepare both young and adult people for these opportunities and difficulties, the financial education gap must be addressed. Retirement may be a period of financial security, personal development, and limitless options with the correct information and preparation.
The writer is a retired engineer, an investor, an author and a YouTuber.
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