Being a son is a asset and daughter is a liability. Wash out all these nonsense from your mind. Whomever it may be you have to bring them up and provide good education and it is responsibility of parents. I have personally heard from many that having a son is enough, they will become a asset to parents. Now a days how many are taking care of old age parents. I won’t tell there are no, but a little in number.
Now a days people are like they dont want any burden of parents but fights for their assets. So, plan your ideas and plans for old age expenses. Don’t rely on anyone. I think only in India we have tendency of mind to earn more and more money for our children, grand children and great grand children. We try to earn and make more money but don’t want to spend. Instead try to give all assets to their children. God should know when this parents will change. Make your children to get higher education and make them build their own assets. Being a parents you have to develop that strong determination and positive energy in them. No need to give all assets to your children.
Let us check out with an example:
There is a person X, he has earned some crores to him and to his family. All his assets are in the form of lands, apartments, gold etc. But he does not have liquid cash to spend in old age. So, now he is old, everyone has a tendency of mind not to sell any property for eating or meeting his expenses in old age. Instead he rely on his son for small things where they may or may not fulfill all his necessaries.
What am i telling is that maintain some liquid cash as emergency fund to meet old age expenses. It is very difficult to save for retirement in your 30s, but you should not ignore that it should be your top priority. you cannot expect what need may occur in your old age.
Retirement is just a relaxation. The word retirement brings a certain relief for those who work hard every day. In my sense retirement means relaxing at your home holding a newspaper. For some they plan for a trips to go, and others have a small nap in the afternoon.
Is Retirement important:
You must deserve this retirement stage which is considered as golden days. After end of daily struggle of 8-10 hours of work. So, why can’t you work out for those most awaiting days. If you need a better tomorrow work for today for leading financial independent life in beautiful stage of retirement.
Yes, of course retirement is a must. Do you remember the happy moment day you got your first salary, and also you might have done many sacrifices to your family, then retirement is also a phase where you cut a cake and feel relief from burdened life. you need to enter in to your golden days in which you should have only happy moments.
What to do when you are 30s for better retirement:
1. Own a house:
Though your house is not an asset, you must buy a house to live with in. Don’t spend much on house if you are not affordable. Before you retire try to construct your own house with out depending on any other. Try to make out smart investments in owning a home. You feel more secure and peaceful in owning a house. If you construct your house in 30s you may have better ample scope for other priorities.
2. Open a IRA account ( Individual Retirement Account)
IRA account is a special account in retirement where you are paying taxes on money in which all the with drawned amount in future is tax free.
Steps to open Roth IRA:
Roth IRA are the best ways to save for retirement. You may get tax free income in retirement even on earnings that have earned over years
- Make sure you were eligible
- Deciding where to open your Roth IRA account.
- Fill out application
- Investment choices
- Make a schedule to contribute for account
3. Set up a emergency fund:
Emergency fund is kept aside to meet unexpected shortfalls. In the crisis of unplanned or unexpected scenarios emergency fund plays a crucial role. so always maintain emergency fund.
Also read : Financial planning tips for women
4. Get your life insured:
Life is uncertain. so, get your life insured. It gives money security to family and also we get tax benefits. We don’t have a guarantee card for our lives. So, always get insured yourself.
5. Discuss with partner:
Discuss about retirement planning with your partner. Try to take decisions jointly for retirement. Discuss on what they should invest?, where they have to go ?, Any trips ? How to manage money ?where they need to spend and where they need to save etc.
What to do when you are in 20s:
20s is the age where real life begins and before 19 years is just a practice. This is also very crucial stage. One must be very cautious in spending in early stage of earning.
1. Avoid debt of credit card:
We need to avoid paying debt of credit card which results in high credit card bills. Always keep your expenses to a minimum. Dont waste extra bonuses or credit points instead utilize them to better extent.
2. Healthy credit score is to be maintained:
If you work hard today you can be happy with enough money for rest of your life. Healthy scores benefits a lot like lower interest rates and lower premiums. Always pay your bills on time and keep your balance low.
3. Learn about investing:
It is best time to learn about investing. Always try to enhance your capabilities and use money to improve your returns. Get a course of how to invest in low cost funds. Explore your basics of investing etc.
4. Creating spending plan:
Budget should be made on your priorities. Think twice or thrice before spending. You don’t need to maintain account for every rupee. But if you maintain you will stay on track and it will allows you to meet your goals.
Once you make retirement planning also discuss with your partner about retirement spending. So, parents maintain your own financial security. avoid depending on your children Until the situation is worsened. For retirement save to spend, don’t save to save.