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When you live too long


With several breakthroughs in the medical industry, we often tend to underestimate how long we’d live. The average life expectancy has gone from 90 to 100 for our generation and can even shoot up higher for our children.

It is advised that you always have a financial planner who looks into securing your wealth in those thin years – because let’s admit it, an 80 year old, with a depleted retirement fund isn’t a pretty picture.

Of course, living too long might mean that you get to hang out with your loved ones a lot longer, and also make sure that you strike off more things from your bucket list – but it also means you’ll have to bear the financial burden of it all, more. 

Two of the most common risks that you might be exposed yourself to are:

  • Outliving your Assets
  • Lack of Savings and Investments

To save adequately, your options are to work beyond the traditional retirement age, save more now or some combination of the two – this also helps you achieve long term stability.

Savings are absolutely essential. Failing to save enough may put you in a situation where you work longer than you want to, live on less than you planned or go into debt trying to sustain your standard of living.

Also make sure that you lead a debt free life in your active years so that they don’t come burdening down on you in the later years.

For most people, the question they frequently fail to answer in their lives is if their retirement plan covers them long enough.

You’ll be disappointed to find that the eggs in your retirement basket aren’t enough to last you in the long run.

Two of the most common problems people face is that they either die too soon or live too long. While the former can be sudden and devastating, the latter can be tackled if one has got a cleverly planned financial service to last him. 

READ ALSO: Planning your retirement

WRITTEN BY: BALAKARTHIGA.M

Planning your retirement


A study shows that of the Generation Y – those born between 1980 and 2003, almost 60% do not think about their retirement plans at all!

The biggest myth about retirement is that we believe that we are too young to start planning. We’re going to bust that myth today –because the earlier you start planning and working on your retirement the easier it will be for you.

Balancing the life they want to live today with the life they want to live in retirement, is not as hard as it sounds.

1.       KNOW YOUR EXPENSES

The first step to planning your retirement is by knowing how much you’ll require to keep your lifestyle the same. Calculate your monthly expense, and make sure that your retirement plan covers that amount. Often, it has been found that retirement costs more than what you need for your current lifestyle. So, make sure that you are prepared to meet those expenses as well!

2.       PLAN TO MEET THEM

Once you know how much you need, the next question you need to ask yourself is this: How are you going to meet this expectation? How are you going to save up to this? You need to strategize your current wealth and earnings in such a way that they are channeled into a secure retirement fund. Stick to the plan, and do not retract from your goals and targets.  

3.       START SAVING AND INVESTING

Be smart, cut down on your daily expenses and save as much as you can.  When you spend so much for your daily coffee – almost Rs. 160 in Starbucks or CCD. All these amounts add up into the Latte Effect. Consider Rs. 150 twice a week – this adds up to about Rs. 1200 a month.

Imagine what Rs. 1200 SIP in a good equity fund can do for your portfolio over the next 40 years!!

Every single dimension of your lifestyle is worth saving, and will fatten up your retirement fund.

Happy Saving J

WRITTEN BY: BALAKARTHIGA.M

7 deadly Sins of Personal Finance



1.       PRIDE:

We are the Instagram generation. How the world perceives us is much, much more important to us, than how we perceive the world. And thus it can be very easy to get caught up in an image.  Trying to maintain an air of wealth or buying things that you can’t afford (or in worse cases, you won’t need) is one of the deadliest sins of personal finances that many young people get caught up in.

2.       ENVY:

I cannot stress this enough, and the threats of falling into this trap is simply immense. But here’s a spoiler for you: COPYING WON’T MAKE YOU RICH!!

Yes, the Shiny Jaguar next door looks like a dream, but don’t forget that you’re still paying off the sedan that you bought three years ago!

Trying to keep up with your millionaire neighbours will only sink you further into debt, and remember the more conscious and aware you are of your financial potential, the smoother it will be to handle your wealth.   

3.       GLUTONNY:

Stop and think why you’re buying things. Is it because you just had a fight with your spouse, or is it because you are trying to ward off all the stress you have at your workplace? Time pass? Entertainment? Or worse – Addiction??

Hey – wait a minute – what are those dozens and dozens of sports shoes doing in your closet? And do you really need to get your hands on the new M.A.C. Selena range of lipsticks when you haven’t even snapped open the last lot that you bought?

Over consumption to the point of waste will only take a heavy toll on your budget.

4.       LUST:

Lust is a very intense, physical desire.

All of us have weaknesses. And we have ALL been at a point where we’ve been guilty of buying something that we really, really wanted but was well beyond our financial means. Lust makes no financial sense.

Yes, we understand.

But we have also come up with a way to battle this compulsive urge to buy something that you are crazy about.

The next time you see a product you can’t live without and also cannot afford (funny how the two always come together, isn’t it? ), just get home, think about it for 24 hours, and then come back to the mall if you still feel like you need to buy the product.

Chances are that the buffer timing will let your steam off, and you’ll escape the trap of intense desire.

Just remember – addictions can be expensive.

5.       WRATH:

This one is for all the emotional shoppers out there.

Do you walk into the Dior show room, or get a Louis Vuitton whenever you are an emotional wreck? Does swiping your card simply make you feel better after a fight or a workplace disturbance?

Do not let your emotions and your ego take its toll on your credit card debt or swallow up your bank balance. Just keep telling yourself that your self-worth is not determined by what you have, but what you are.

6.       GREED:

You want to know what the most important rule of finance is?

Saving!!

Yes, we understand that you worked hard for all the money that you made and it wouldn’t kill you to just keep a portion of your pay check to yourself so that you can get something that you wish for. It is easy – very easy to justify that greed and even easier to succumb to it.

That is why we suggest that you entrust this duty to someone else that you trust. Some of the ways that you can do this are as follows.

Enrol in an automatic savings plan. Invest in term plans that will give you returns. You can make the best out of the money that you save by using online insurance aggregators who can help you compare different policies. Use the maturity calculators of such sites and apps to know what you’re investing into.

7.       SLOTH:

Young professionals are always waiting to start saving for their retirement. Although it is completely justifiable that they think that their retirement is several light years away – that shouldn’t be presented as an excuse to start saving.

Look at all the retirement plans that are available online. Invest in a good retirement policy. The earlier you start, the better your retirement life will be. You can compare the pension and maturity value of the several pension policies in these portals as well.

Just remember that the thumb rule to saving is that the earlier you start, the wealthier you will be.  

Posted by

Balakarthiga M