Me @ 60

On 26th Jan’2010, the day when India celebrated its 60th Republic Day, Hindustan Times – CNN IBN shared the results of the survey it had carried on senior citizens.( We can all be skeptic on the survey results, but lets give an allowance for the same.) Out of the many, 3 of them caught my attention and which has an impact for each one of us as we age and reach 60, some time in the future :

1. 53% of the sample stated that they have not invested enough for a financially secure, post retirement life

2. 38% stated that they were financially dependent on financial help from children / relatives ( 29% depended on Government pension )

3. 50% stated that medicine/healthcare is the biggest component of their expenditure

Which spectrum of the pie, one want to fall into is our choice. And its upon us that when we are healthy and wealthy we plan. It’s said, in times of peace, prepare for war and vice-versa .

As is our recommended approach, ( KIS – Keep It Simple ), we share our philosophy :

• Save systematically (minimum of 20% of the monthly income)

• Keep track of your expenses and calculate your years away from retirement ; add inflation rate and your life expectancy and you have the amount you need to save ( financial freedom)

• Do allocate and invest 20-30% in equity thru diversified mutual funds ( if you are not inclined to invest in direct equity and is minimum of 7 -10 years away from retirement. Reduce the exposure gradually, as you near the retirement age )

• Keep track and review your investments, every quarter.

• Think long term . Rome was not built in a day and so does your wealth.

Maths thru the power of compounding helps you to create and generate, more if you plan and save early .

Believe in the India growth story and be a part of the story.

10 years from now, in 2020, it’ll be interesting to write a follow-up article, sharing the success stories of the readers of this article in achieving their financial freedom @60. It will be a honor and privilege.