Retirement Wisdom

Financial Wisdom from Uma Sashikant

Principles to manage money after retirement: 

1. Consolidate your assets mentally and identify its uses.

2. Classify your assets as: (a) assets needed for immediate and routine needs; (30%) (b) assets for later use(30%); (c) assets that will be given to your successors(30%): (d) assets needed to meet emergencies(10%)

3. Calculate your routine expenses and identify assets that will generate this income. This must generate a little surplus also.

4. Identify assets that are not needed immediately but can be liquidated for discretionary uses such as travel and other enjoyments.

5. Assets that you want to give away can be long term equity portfolio; if necessary sold and reinvested also. It should be easy to manage for your successor.

6. Your drawings from your corpus should be only a single digit percent annually.

7. Assets used to meet routine expenses should be topped periodically to face inflation.

8. Constantly review your assets, maintain and give considerable care; during your retirement period you have the time.

9. Focus and maintain good life style, good habits and health.

10. Though you may not need your children to take care of you, yet when you fall ill and have to meet unexpected expenses graciously accept it …help is important as you grow old.