Podcast 30th October 2015
Hi I am Arjun Parthasarathy speaking and this podcast is on “Retirement is a long way off, why worry now, is a disastrous statement to make”
I once had a financial journalist asking me why I am focusing on offering Smart Retirement Solutions to subscribers of Investors are Idiots.com. In turn I asked him his age and what he was doing for saving for retirement. He said he was approaching 40 and his single largest saving was his PF as it was a forced saving.
My first thought was he is in disaster zone. PF is good, as forced savings but does nothing to beat inflation. Being a financial journalist, he should have been clued on to growth investments but had done nothing about investing in growth assets such as equities. Journalism too is undergoing rapid changes with many publications/media houses being closed down due to technology driven content. The journalist has left himself exposed to workplace changes by not investing smart for the future.
I then answered the journalist on why I was focused on offering Smart Retirement Solutions to Subscribers. Apart from a few enlightened professionals, most of the hard working, tax paying professionals are exposing themselves to financial insecurity by not starting to save smart for retirement. This is a need that has to be addressed and I am addressing that need.
Retirement is not a choice for you unless you run your own firm or you are the President of FIFA. Every year of your professional life your time to retirement reduces. In the current chaotic economic and business environment, your retirement could come in sooner than you expect.
Unless you have struck it rich early and can afford to retire, your current financial health may not be enough to see you through your retired life. Hence the focus on looking at saving for retirement should be strong especially as you progress in your professional life.
The most common statement you come across when you ask professionals if they are saving for retirement is “Retirement is a long way off, why worry now”. Many professionals who said this are regretting now, as their time for retirement gets shorter. This statement hits hard especially when at later stages of a professionals life, growth in career stagnates as well as growth in earnings. The professional does not have the risk ability to venture out to start a business nor is in demand in the marketplace for talent.
Strong financial health will then become even more important as a professional stagnates in his or her job.
Investing smart for retirement when you have the ability to invest would stand you in good stead as you reach your later stages of your professional career.
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