Importance of Future Financial Planning – Yes You Need It too !!

You might be in your early 30’s or even in your late 40’s, but even while you are working almost twice as hard to get half the pay to lead a comfortable life, you might be forgetting something very crucial to your future. Depending on the age in which you retire, the salary that you are drawing now will not be there to cushion your needs anymore. You need to chalk up a plan so that your life after retirement will be as pleasant as it is now.

Why do you need a Good Retirement Plan?

Retirement is indeed an important event in one’s life as it marks the end of one phase and the beginning of another. Being comfortable, both financially and physically, is all that should matter to you at that age. But for achieving this, you need to plan carefully, and over a long period of time. You should commit yourself to a smartly designed future plan for the years to come, so that you may lead a good life.

Reasons for Securing your Future—Early in Life

You might be wondering, “Why plan so early? I’m just 35.” Here’s why you should start planning immediately.

Quality of Life: If you really want to lead the life as you were leading when you were earning your maximum salary, then you have to plan early on to maintain the same quality of life. Only a long term plan will enable you to save significantly. Otherwise, you will have to scrimp after your retirement and money will become more of a restrictive force.

Income: Unless and until you have other sources of income like pension, business, rent etc. you will most likely have very little income. So it’s for the best that you start calculating and saving up from now on, for a better future.

Medical Expenses: Old age is sure to bring along a baggage of illnesses and diseases. Man is not immortal. You might be fit as a fiddle but after a certain age, your body starts deteriorating and there are recurring medical expenses. If you are aware of some hereditary diseases then you should save up so that you can afford your medical expenses after retirement.

Other Expenses: You might want to fund your grandchild’s college education or want to retain priceless heirlooms or real estate; with this in view, you should probably start saving up immediately. At times, it so happens that people have to liquidate such assets after their retirement (due to lack of funds) and live off their children, or at some place with a bad quality of life.

Investing early in life is advantageous because your money has more time to compound and grow. But it’s never too late to start.

United Links Insurance Plans – A Closer Look

It is wise to start investing now because that way your wealth can multiply and compound with more time. ULIPS (United Links Insurance Plans) is a protected investment option for you. ULIPS are linked to capital marketing strategies, so you can invest in equities according to your individual capacity. Investing in ULIPS is a recommended solution for long term benefits.

Way Forward…

Moreover, life is very unpredictable. You might plan for something and life may have something entirely different in store for you. You should be prepared for any unforeseen events – be it any medical issue or any financial need. If you have a substantial amount of money saved up for your future, you can use that in dire consequences as well. Planning for your future is more like an ongoing process which pays off in the end!

Harjot Singh Narula

Harjot Narula is founder and CEO of ComparePolicy.com, an IRDAI approved insurance web aggregator focussed on selling online insurance for companies. Harjot has more than a decade of experience in software development and has also spent 5 years in US working for the mortgage and risk management industry.

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