Retirement planning assignment
Research has proved that the average life span of an individual has increased in the recent past. This increased life span indicates that an individual spends around two to three decades of his life in retirement. Thus, retirement planning is becoming extremely crucial, especially when one plans out how, when and where to invest individual funds.
Almost every individual desires to remain financially secure after he retires. This is quite difficult considering the rate at which inflation rises in nations across the globe. Hence, it becomes even more crucial to plan for a safe financial future.
Retirement planning is essential to plan, develop and manage a successful portfolio to attain desired retirement goals. Retirement planning comprises of the following steps:
- Knowing oneself and future needs
- Knowing the varied retirement options available
- Selecting financial assets carefully
- Developing and following the retirement plan properly
- Planning retirement funds as soon as one begins to work
There are some aspects of finance which must be known in depth if one wants to do accurate and sufficient retirement planning. These are related to investment in equities, investment in debt, real estate trends, taxes, cash flow analysis and insurance. If you are preparing to be a financial advisor, these concepts must be made very clear, so that you may give sound advice to your clients. Though important, retirement planning is not very common in developing countries, as people have limited resources, as well as insufficient knowledge of avenues to invest. Hence, the role of advisors for making retirement planning a reality becomes all the more important.
Significance of retirement planning
All individuals have to retire at some point of time in their lives. Creating a comfortable retirement is extremely expensive and needs years of planning and persistence. Even if one does manage to build a successful retirement corpus, it is crucial to plan and ensure that the corpus is sensibly managed.
Retirement planning is also essential due to the following causes:
- Limited or lack of Social security and Pension
- Increase in medical expenses or unexpected medical emergencies
- Other unforeseen expenses
Now that you know the importance of retirement planning, it is a good time to start. Managing your present resources to make the best provision for your future can prove to be challenging if you are working without knowledge of the investment options or not allocating your money in the right proportion. Assignments related to retirement planning can be done easily with the help of our consultants. Place an order and send us the details of your assignment for quick help.
- Why is retirement planning crucial?
- What are the steps one can follow for a successful retirement planning?