Retirement Planning: Financial Planning and Investment Strategies

This report delves into the critical aspects of retirement planning, emphasizing the importance of financial preparedness for a secure future. It highlights the need for a lump sum to manage expenses and maintain a comfortable lifestyle during retirement, including medical and emergency costs. The report advocates for strategic financial planning and investment, suggesting the use of financial planners to allocate funds into appropriate investment instruments for optimal returns. It also explores the concept of the amount of funds needed to be invested per month to create a corpus amount of one million at the time of retirement. The report references academic sources, providing a comprehensive understanding of the topic and offering insights into financial literacy, investment strategies, and retirement readiness.

Running head: RETIREMENT PLANNING
Retirement Planning
Name of the Student
Name of the University
Author’s note

1RETIREMENT PLANNING
Table of Contents
Introduction................................................................................................................................1
Reference....................................................................................................................................5

2RETIREMENT PLANNING
Introduction
At the time of retirement every individual need lump sum to spend his or her
retirement life smoothly and to spend the retirement life without thinking about any financial
crisis. During the time of retirement individuals lose their potentiality to earn and for that
reason the source of cash inflow decreases which force the individuals to take control in the
standard of living. Besides that, the retirement age required more fund in order to meet the
medical expenditures and other emergency issues (Anderson Baker and Robinson 2017).
Therefore, in this context it is said that during the time of retirement it is essential to
have a lump sum so that it can be possible to meet all the requirements of the retirement life.
in order to have a smooth life it is required to manage the funds appropriately so that the
funds can be utilised properly and to meet all the retirement needs. To manage the funds it is
suggested that the individual should appoint a financial planner who will use his expertise to
invest the funds of the individual in appropriate investment instruments and thereby give
good returns to the retired person so that the individual can spend a prosperous and tension
free life (Lusardi & Mitchell 2017).

3RETIREMENT PLANNING
Amount to be invested per month to have corpus amount of one million at the time of
retirement

4RETIREMENT PLANNING
Reference
Anderson, A., Baker, F. and Robinson, D.T., 2017. Precautionary savings, retirement
planning and misperceptions of financial literacy. Journal of Financial Economics, 126(2),
pp.383-398.
Lusardi, A., & Mitchell, O. S. (2017). How ordinary consumers make complex economic
decisions: Financial literacy and retirement readiness. Quarterly Journal of Finance, 7(03),
1750008.