Have You Got the 'Right of Retirement'?

WHAT IS FINANCIAL PLANNING?

Financial Planning is the process of meeting your life goals through the proper management of your finances. Life goals can include buying a home, saving for your child's education, or planning for retirement. However, financial planning itself is not a product, but a process. It involves financial processes that help you take a “big picture” look at where you stand financially today. Using these financial processes, you can work out where you are now, what you may need in the future and what you must do to reach your goals.

RETIREMENT PLANNING

A small proportion of people seem to dread the thought of retirement. Enough stories are told of individuals --usually male --, who, having spent their whole live toiling and finding significance solely in their careers, then inexplicably keel over and die within a year of retirement. But for most of us the thought of a happy, well-funded retirement is an attractive one. Such thinking is certainly justified in this day and age. After all, prior to the Industrial Revolution the very concept of retirement was essentially unheard of. But the exponential growth in human wealth this century and the accompanying increase in expectations and lengthening lifespan have all worked together to stamp what we may well call the 'Right of Retirement' into our very souls. That is a good thing. Yet to be able to truly enjoy retirement we must be wise in converting a portion of our active income into swelling streams of passive income. For only when our retirement is free of the worries common to all who lack sufficient money, can we truly say that our latter years will be a period of reaping the just rewards of a lifetime of industry. The road to this happy destination may be a trifle narrow, but it is not difficult to embark upon. The objective of Retirement Planning is to first analyse your retirement needs and then to project the estimated future retirement cost through the Retirement Planning Calculator.

Articles extracted from Public Mutual on 15 December 2009, http://www.publicmutual.com.my/page.aspx?name=fpc-retirement-planning