Do you plan to "Pretire"? Read on...

(The author is a financial planning coach, founder and CEO of Money Avenues, a Wealth Management firm based in Chennai.Mail your views at:  finplancoach@gmail.com)

Do you plan to "Pretire" from work? Read on...

People opt for "pretirement" than retirement these days.
Calls of passion lead to pretirement, which basically means cut short your present career and choose something else guided by your passion.

 

"I ME MYSELF" syndrome is catching up like anything. People like never before are willing to explore things outside their organizations and careers. "Woodian" outlook is catching up fast with the current crop of professionals and executives.



To know more about John Wood's inspirational story....

http://www.leavingmicrosoftbook.com/author.html



Pursuit of passion has triggered an increasing urge among the people to "pretire" from "job", if not retire from jobs. This is because of variety of reasons.. Passion may be for turning into an entrepreneur, take up social work, pursue different career paths, pursue other hobbies or just play golf...

The age old retirement milestone of 58 years is getting drastically shrunk which is reflected by rising urge for people to break away from the convention. For instance, my father had a career with government for cool 35 years, which is unimaginable these days. Though the average shelf life in current careers has shrunk, the higher salaries make up for the shrunken shelf life of our jobs.

And interestingly such deviation from our regular journey may happen in a trigger's moment and may not be according to the script. John Wood's one trekking adventure changed his life forever. But remember, this kind of a scenario can still be handled effectively if meticulous planning has been adopted in the early stages of life. A sound financial plan early on can only support such moves by passion driven people.


Now, what do you have to do to handle "Pretirement" passions?


1. Identify your goals and keep revisiting them constantly:

"To get started, you must have a destination" 

--These are prophetic words on goal setting. You must try to figure out your goals early on in your life. And more importantly you must revisit them time and again for changes to be incorporated. And remember, goals come @ a financial cost to you. Start working on your goals in order to identify and pursue them.

2. Start investing early:

Obviously you cannot start planning to invest @ 40 and plan for pretirement at the same time. Start your investing much early in life ideally through the route of easy monthly investments (EMIs). Never wait for "tomorrows" to start the financial plan as there is a huge cost for delays you might have to pay in the absence of it.





3. Start investing smartly:

Just starting the investment early is just not enough. The investing should be smart and aimed at long term wealth creation. Keeping one's money in low yielding avenues will not help one to plan for pretirement for sure. Seek the assistance of financial planners to earn more out of your savings.



4. Have enough health cover:

Organizations provide health cover to an extent while during the stay there. But once out of the organization, one has to be independent and self dependent. It's advisable to have a parallel health cover even during the career as its cost effective if taken much early. Imagine I decide to pretire @ 45 and try to seek a health cover for myself and the family. It will be lot more expensive and time consuming than taking such a cover @ 30. And remember the health care costs are sky rocketing.





5. Have enough life cover:

  

Having ample cover for one's life will be critical while making decision to pretire. The reason being, the family in many cases will be dependent on this kind of financial security in one's absence. In simple words, life insurance is nothing but a financial cover for one's family in his absence. Simply put, Mr X is covered for his life for 50 lacs @ the age of 40. At 45, mishap strikes to take away Mr X. On this event his family gets Rs 50 lacs as financial compensation. It is an important component of a financial plan because, any mishap at a later stage should not in any way impact the family's financial future. So in a way this is a contingency fund for a family.

6. Plan for your child's future:

Planning for child's future should precede the pretirement plan of an individual. Like our passions, the children are also typically guided by their passions, aspirations, goals and objectives. And they definitely come @ a huge cost these days and the future is even more scary with the surge of educational costs. So plan early for their future to ensure a smooth pretirement plan for yourself.


  
7. Plan for Pretirement/retirement NOW:

 

Make a financial plan NOW keeping all the above factors in mind. 


1. Have goals.
2. Start saving early.
3. Start saving smartly.
4. Have a good health cover.
5. Have ample life cover.
6. Plan for your child's future.
7. Make a plan NOW...


"To get started, you must have a destination". 

This not only applies to your goals, but also for your financial planning.

Speak to experts @ Money Avenues to make your financial plan and realize your pretirement goals

(The author is a financial planning coach, founder and CEO of Money Avenues, a Wealth Management firm based in Chennai.Mail your views at:  finplancoach@gmail.com)

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