The future is often unsure, especially in present day worldwide financial climate which suggests skepticism wherever you go. Only consider the market meltdown crisis and you will then realize what I am speaking about. Simply because people were not ready for a long term future, a lot of people have suffered the outcomes. This is basically the quite same for your financial predicament and especially your retirement life; when you need to have the security and fiscal reassurance and never be concerned about everything else and carry a good quality plan which will stand up to the hardest of periods. That is why personal financial planning and retirement planning is very important.Talking about retirement is one thing some of us do not want to do. It’s comprehensible why we would like to steer clear of the issue but the truth of the circumstances is the fact that at some point in our time we’ll know that retirement living per se delivers with it, an unique number of problems and possible misfortunes. Planning ahead for the retirement is planning for your older years – and it is not only about data. It’s in relation to your way of living and adjusting your existing finances and investment decisions to reach aims and objectives for a happy long term future. Nobody have to to work upon retirement – if anything else, it ought to be carried out voluntarily and simply to pass through time.Planning for retirement living is useful given it it isn’t just in relation to getting yourself ready for the time following working, it will give you a sense of ease and comfort and security in many years coming up to your the golden years. What’s more, it gives you a strong notion of what your long term future would be and offers you the freedom to do the lifestyle you frequently wanted to do with no need of being worried about getting a time out of work or changing work to something less demanding. In addition, it applies much less strain on your family members to take due care of you given that independence at final years is essential to most people.Personal financial planning, especially at an early age will help provide your everyday life focus and help you to accomplish your ambitions in your life. Financial planning gives you a set of skills to generate prosperity and put together a nest egg that can be used in the eventuality of emergency situation. Financial planning as well will provide you with route, which you need to have for making knowledgeable actions with regards to investments to make sure you don’t make just about any mistakes and you could enjoy the benefits through out your daily life.Personal financial planning and retirement planning actually run in hand and are means that need to be dedicated to or at best contemplated throughout a person’s lifespan. Securing your own future and getting your capital work on your behalf really are two important commodities for anyone – logic behind why financial planning and retirement planning is essential.
I remember, as a young lad, being given my weeks spending money, and running to the local post office to deposit some of it for “the future”. What that meant to me was for a new bike! The fact that I never got it, does not mean that I failed, it just means that I bought other “big things” such as parts to build a radio, things for my train set etc.Financial planning is, or should be a pleasure, and you should be able to see the end result, right at the beginning. Then just like my never achieved new bike, your goals will constantly change. Just a note at this point, for those with daft objections to planning your finances, if your dog is good at putting out fires, and rebuilding your house when the idiot next door tries to turn his gas meter round and blows your house to bits, then no you don’t home insurance! If you will never die, then you don’t need life insurance.Having a few grand in the bank, or at least access to a few grand is the starting point for financial planning. Often referred to as an emergency fund, it is your “comfort blanket” and the first building block in financial planning.Having something for a rainy day is something that was temporarily removed from me last year, and it was at that point, the most difficult time of my adult life. Whichever institution I turned to get help closed the door on me, and I was let adrift to fend for myself. These same institutions were the first to send me letters when the status quo was returned! Not to help me of course, but to have me invest with them!Can I just say that the number of true friends who offered me help will never be forgotten? The thing is I am a Yorkshireman, and I work for what I earn – so work appeared from my friends, that perhaps wasn’t really work, but we all felt happy with the situation, and I survived it all. So, when you have this emergency fund, what next? Well perhaps of equal importance is ensuring that your death would not stop others from carrying on, at least financially. The most basic cost is a funeral, but beyond that, is allowing those who relied on you, to continue to achieve your joint goals without the “cash generator” around anymore. Things such as your children’s future, did you plan for them to go to college? Did you plan to help pay for their weddings? Did you plan a special family trip, did you plan to move house? These can still be achieved by those left behind with good financial planning, and discussing this can be fun, as these dreams are our lives.Nowadays, many people have the family home mortgaged, and most will have the value of the debt protected, if you don’t, you should! See the previous paragraph as to why. There may be times when your planning will be interrupted as the money becomes unavailable. For example being out of work, being ill, or being injured. Again these areas can be protected, so the future plans do not have to be reduced or cancelled.The future “biggie” for us all is what happens when we are older and stop working, but at the same time we want to enjoy our lifestyle, this is where early financial planning is essential. Everything still costs the same when you are 65! When you retire, the shops don’t offer you 90% discounts, or your new car won’t get 90% off, but if you are not careful in your planning, then your disposable income could easily be cut by 90%. Take a look now at your running costs today, a good place to start your reality check is the energy bills. What will happen to them when you are in the house more than you are now? What will change in the food that you eat? Will you still want to socialize, take holidays, run a car, and buy presents for people? These are the enjoyable parts of your life and if you want to enjoy your financial future, you need to sit down and enjoy your financial planning now! If you spend 15,000 now, why will that change in retirement? It won’t is the simple answer. Okay what you spend it on will probably change, but you will still spend it. How many years do you want to live in retirement? Now this may seem like a silly question, alongside questions such as “how long is a piece of string”, but it is a genuine important question and at the end of the day we are responsible for the outcome.If you hope to live say twenty years, then you will need 15,000 X 20 which is 300,000, so saving 20 a week for 30 years just isn’t enough (if you have not got there yet, it’s only about 1/10th of your needs!). I am going to digress a little here. If you have a business, that you hope to sell when you retire, be certain that it will be salable, and that it will provide enough for your future. If what you do in your business needs you as its main ingredient, then your business may have little or no value, for example you are a hairdresser and people come to you for what you do to their hair, then without you there is no business.My final thought in the field of financial planning, is care in your old age. There is much debate in the UK at the moment, and without being political, it has to be paid for, and those who say “It’s the governments’ responsibility”, just remember, all the government do is take your money and distribute it, so if they need more money, then it is YOUR responsibility, as you are the taxpayer, and you will need to pay more now for the care in your future.