We all dream of our children to be well-educated and earn handsome money. What do you do if they say- “I will study when i am at your age”? We may be astonished by their words if you hear these words. We prepare our children to go to school when they are at age 3.
If they start their education in the early age, they gain knowledge day-by-day and became leaders of tomorrow. Like wise if you start investing when you get your first pay-check is the “Best Time” to prepare for retirement. As you started investing at 25, there will be left with 35 more years to retire. If we start investing at 25, our investments compound over time and will fetch extra-ordinary returns during retirement.
There is a saying- “You are sitting in the shade of the tree, because someone planted a tree 20 Years ago”. The next best time to plant a tree is “Today”.
World’s Legendary Investor Warren Buffet started investing at the age of 11. Till Now, he is continuing his investments making him as one of the “wealthiest” persons in the world.
You may not be warren buffet, but follow his “Starting Early” Principle.
When it comes to investing, “Patience” plays a key role. You may heard of the chinese bamboo tree. Up to 3rd year of seed sowing, it doesn’t grows. But being Patient and watering the tree regularly makes the tree to grow 5-6 feet up on 5th year. The same applicable to your investments. Keep on investing and see the compounding magic when you retire.
Why should plan for Retirement?
In India there is no social security schemes for retirement. Developed countries like USA have retirement plan 401(K) which fulfills retirement needs.
Beyond that India’s inflation is far higher than the developed countries. Don’t say “Excuses” to saving and investments.
We all hear that – “I don’t have enough money to save. My expenses are so high, so i can”t invest”. This is a damn-excuse. If you can’t save when you are earning, what about it in your retirement?. In your retirement, your income stops, you have no source of income, how would you survive then?So Start “Small” and increase your investments periodically when ever your income rises.
Another reason to start saving for retirement is when you are earning, you are eligible to take loan from the bank based on your circumstances. Banks give Personal Loan, Housing Loan, Vehicle Loan etc. But have you heard banks giving “Retirement Loan”?
No Bank gives you retirement loan. You have to be prepared for retirement yourself. Even your child gets educational loan for higher studies, but what about your retirement?
So every individual has to plan for retirement themselves. If they start investing and let the money compounded, that “corpus” will take care of you during retirement.
Some says “Retirement is Golden Years to enjoy peaceful life”. But it is in your hands to create that “Golden Corpus”. It should be the first priority, rather than other goals. So First “Invest” and spend the rest. This is a golden mantra to be followed to combat rising inflation in India.