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How Can You Do Financial Planning Till 90 Years of Age By following our tips you can bring an end to the insecurity in the financial front for your entire life

By Anil Rego

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Money does not grow on trees. Like a fruit, one needs to nurture and take care of financial planning. With rising life expectancy, we are living longer than ever before. An individual living till 75-85 years is an everyday occurrence today, with a good amount of financial resources being spent on healthcare in the latter part of their life. Additionally, our financial goals have expanded in size and ambition. Twenty years ago, a retired life meant building a home on the plot of land that one bought. Today, buying a home on loan is a reality for many before they hit 30. Just like a year consists of many seasons, long-term financial planning needs to be done keeping in mind different and dynamic objectives as we age. Here is a guide on how to do financial planning if you are expecting to live to see your 90th birthday.

Plan As Per Age

Fresh out of college or MBA, the first job doesn't allow us to save a lot especially if there is a liability like an education loan. But with annual hikes, promotions, and bonuses, the financial situation vastly improves. As the education loan is repaid, new aspirations like buying a car, a house, or going for a vacation abroad emerge. Others may need to bear the responsibility of education costs of siblings, look after parents and personal family expenses.

By the time you are in the early to mid 40s, servicing home and car loans, saving for retirement, planning for a second child etc. are high on agenda. By mid 50s, your own post-retirement planning and children's marriage become financial goals for every responsible parent. In the 60-70s age bracket, managing retirement income carefully and looking after health expenses emerge as important financial activities.

Beyond 70-80 years of age, leaving a legacy for grandchildren, distributing assets among children and remaining financially independent are critical goals. As you hit 90s, health costs surge unless you remain extremely fit. As you can understand, at different age brackets, our financial needs differ. This means your strategy and game-plan to achieve desired outcomes will also change as you age. These factors need to be enshrined in your financial planning.

Go For Expert Advice

Looking after your job, family duties and social commitments are not easy. But, such is life. While earning money may seem easy once you gain expertise and experience, saving and investing the same to grow wealth is not easy. It calls for expert advice. Mere thumb rules, shortcuts, broad-based plans and general advice cannot do the trick. Wrong moves such as not accounting for proper inflation itself can throw your financial plan into jeopardy.

Financial planning is an extremely personal task and one which will need the best of professionals. Just like we have that one doctor and one lawyer we rely upon one, financial planning requires a dedicated financial expert who will spend the time to understand your needs, your problems and your desires. Investing in an equity mutual fund, or buying a great property cannot be an all-weather proof financial plan. This is why it is vital that you understand that merely earning buckets of money cannot help you always. Because, there will be a time when you may not have a job, but your financial commitments will still be around.

There will be a time when you no longer will have a fixed income, and at that time the assets accumulated so far will act as a regular income source, just like the glacier gives water that feeds seas. Given that our earning lives range between 30-40 years, we will need those three-four decades to be the financial bulwark of the rest of our financial requirements i.e the present and the future. Do not take the matter of having a financial advisor lightly. It is important to acknowledge that not everything can be DIY (Do It Yourself).

Conclusion

Long term financial planning till 90 years of age is doable. That is the good news. There needs to be a conscious, regular and agile way of planning for such a long period of time. Accumulation of assets and then depletion of the same assets, keeping in mind price rise and dynamic needs, is easier said than done. Plus, taxes are always lurking around. Hence, start your financial plan now with the help of taking expert help. Remember that what you may think important today may change tomorrow when it comes to money matters.

Anil Rego

CEO and Founder, Right Horizons

Anil Rego is the CEO and founder of Right Horizons, an end-to-end Investment advisory and wealth management firm. An MBA and CFA degree holder, Anil believes in the Contrarian approach of wealth management. His areas of expertise includes Corpus fund management, tax planning and end to end financial planning for both residents and NRI investors .

Anil has worked for Wipro as Business Planning and Merger and Acquisition Manager before starting Right Horizons in October 2003. RightHorizons has branches across Bangalore, Mumbai, Chennai and Hyderabad.

Anil has been a columnist in leading Indian newspapers. He also routinely answers queries in mainline publications and websites. He is also a Guest Lecturer with various business schools like ICFAI, ITM and Union Bank School of management. Anil has also served as member, Board of Governors, at IBSAF.

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