Investment Blog

Team Truemind: “You have enough assets to retire today!”

The sense of relief and joy on the face of our client was priceless when we shared our financial planning outcome with her. That set her free to pursue her hobbies and pet projects. The interesting part is that she was not even aware that she could retire comfortably with her current net worth.

These are the beautiful words that many of us want to hear.

Despite earning handsomely, many people are unaware of the fact that they are not ready to retire or won’t ever create enough assets to retire comfortably due to insufficient savings, poor investment choices, and lack of investment discipline.

Only a few can take the right & timely steps to prepare for retirement. A minuscule number become lucky to be at the right place at the right time and grow with their caliber.

This client of ours made significant wealth by way of accumulated ESOPs from a Global MNC. The sharp bull markets of the last few decades lifted the fortunes of many working in such companies. However, how you build wealth during your active working years is very different than how you sustain that wealth to ensure a peaceful and comfortable post-retirement life.

Building wealth could be an exception due to a sharp rise in an asset where one has a significant stake. The same can’t be relied upon post-retirement. A retirement portfolio is not about growing wealth sharply, it’s about preserving wealth by diversifying your corpus across asset classes and geographies to protect from any significant investment risk in one stock/asset class/geography. Thus, diversification becomes much more important post-retirement.

Many people are quite unaware of the fact that how their standing is with respect to their retirement. It becomes immensely important to know what the right retirement corpus is for you so that you can plan and direct your energy & resources to achieve that magic number. The Sooner you do it, the higher the chances you have to achieve your goals and enjoy the true riches of life.

Maybe with this exercise, you could be pleasantly surprised to know that you are ready to retire today 🙂

Originally posted on LinkedIn: www.linkedin.com/sumitduseja