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9 Mistakes that Ruin your Retired Life|Follow A Must Avoid Checklist

Hello, my friends. I have an uncle who retired about 10 years
ago, when he was about 56 years old. After retirement, he received a
substantial amount as a corpus. However, unfortunately, his
bank account is now empty. Every month, he has to depend
on his son for pocket money. His health is getting weaker with age, and he is quite stressed that if he
has to be hospitalized for any reason, who will take care of him. He shared some mistakes with me that
I will share with you in this video today. If I tell you to visualize your life after
retirement, what would you imagine? Perhaps waking up in the morning
and taking a walk in the park with friends, going on vacations with family,
spending time with grandchildren. Most of us think that retirement
will be our golden period, no work stress and just rest. But many of the things said in
this video may seem bitter to you, but it is true, a bitter truth.

I am Bhaven, a certified financial
planner and personal finance coach, and I welcome you to my
channel ‘The Art of Wealth Building’, your one-point destination to seek and
unbiased consultation on personal finance. Let's discuss some mistakes
that can ruin your retirement. Mistake number 1: Spending all the
money on children's higher education. My uncle got married at the age of 33
and had family planning at the age of 36. This means that when he turned
58, his son Ronit was 22 years old, and when Ronit needed 20-25 lakhs
for his MBA, my uncle had already retired, and he had to give that money to
Ronit from his retirement corpus. This was my uncle's first mistake that he funded Ronit's higher
education with his retirement money. In this situation, he could have
taken an education loan for Ronit, which Ronit would have paid
after completing the studies.

Many times, there are
government scholarships or admissions available at
subsidized rates for MBA. So uncle should have asked
Ronit to explore that option as well. Mistake number 2 is not being able to
handle the significant amount of money received after retirement. My uncle also made the same mistake
that many people do after retirement. He invested in a property, thinking
that he would continue to receive rent. Where the monthly rent of
a property worth 50 lakhs, after deducting maintenance,
is hardly ₹10,000, on the other hand, if he invested
the money in a fixed deposit, he could get an interest of
₹20,000 after deducting taxes. In India, the rental yield of property
is only two to two and a half percent. On the other hand, fixed deposit,
which is a relatively safe option, also gives interest of four to
five percent after deducting tax. Property is not a liquid asset, meaning it cannot be easily sold
during emergencies in old age. On the other hand, fixed deposits
can be easily liquidated when needed.

Maintaining the property is not easy, and at times, if the property is in poor
condition, the rent also stops coming. When selling a property, a considerable amount of capital
gains tax also has to be paid, and there is also a lot of expense involved
in buying and selling the property. In my opinion, every person should have their retirement
plan and a plan for after retirement. Our salary will stop after retirement,
but inflation will continue to rise. So, if you want to understand how you
can achieve your personal financial goals such as early retirement, buying
a house, buying a car, vacation, home loan, pre-payment,
higher education, etc., then message us on WhatsApp at
the number appearing on your screen or check the description box. You can also visit our website
'theartofwealthbuilding.com.' Mistake number 3 is to
invest all your money in FDs or post office schemes after retirement.

For the initial years after retirement, my uncle managed his personal expenses
easily with the rent from his property and the interest from FDs. But after a few years, he started
experiencing running out of money. This was because the rent amount
was not increasing by a significant amount due to a lack of property
price appreciation, and inflation was rising rapidly. He should have invested at least 20%
of the money he received after retirement in equity mutual funds. This would have helped
his money to grow in value and allowed him to maintain
his lifestyle even with inflation. Many people, like my uncle, invest all their money in FDs or guaranteed return post
office schemes after retirement. But after a few years, the value of that
money reduces in real terms due to inflation. Mistake number 4 is to spend all the
income you receive after retirement. My uncle used to spend the entire
amount received from rent and interest, and this is a mistake that many
people make when they retire, thinking that every month the rent
and interest would keep coming in.

However, if he had invested a small portion of the
amount received from rent and interest in an equity mutual fund through a
Systematic Investment Plan (SIP), he would have accumulated a
substantial amount for the future, and he could have increased his withdrawal
amount. along with the rising cost of living. It is advisable to invest some portion
of the post-retirement monthly income, such as rent, interest, and pension, in
an investment plan until the age of 75, so that there is no shortage
of money in the super old age. Mistake number 5 is sharing with
your children and other family members how much money you
received at the time of retirement. This is an emotional mistake.

I am not saying that you should
not keep a record of your finances, your wife or husband
should know all the finances. You should also have a will, but the detailed blueprint, such as the
value of your assets, your total net worth, how much interest or
pension income you have, should not be discussed with
your children or any relatives. My uncle made this mistake and
told everything to his son Ronit. Every parent is emotionally
connected to their children and if in the future your son,
son-in-law, daughter-in-law or daughter asks for some money,
you won't be able to refuse, and this money can also spoil your relationship
with them if it does not come back. So the right way is to have
a will and the right records, but not everyone should
know everything in detail. Mistake Number 6:
Guaranteeing someone else's loan. After retirement, everyone
may have an estimate that a substantial amount has
been credited to your account, and sometimes our friends,
relatives, or neighbors request us to be
guarantors for their loans.

Often, when the borrower is
unable to repay the EMI of the loan, then the guarantor has to repay the loan. So when someone asks you
to be a guarantor for their loan, you can tell them that your
risk profile is not that high, or your wife or husband will not allow it, or children will not allow it. If you take the guarantee for a loan and
the borrower is unable to repay the loan, not only will your money go, but
the relationship may also be spoiled. My uncle had guaranteed
his brother's loan, and even today, when his
brother doesn't pay the EMIs he has to pay the EMI
of his brother's loan.

Mistake number 7:
Don't just run after returns. In point number 3, I told
you that after retirement, you should not invest the entire amount
only in FDs and post office schemes, and you should also invest in equity mutual
funds where you can get higher returns. And now I am saying that you
should not only care about returns. So, you see, these are
two different situations. My uncle gave some amount
to a friend of his at interest because his friend had promised
him 1 percent return per month. But after some time, my
uncle's friend passed away and his children refused to
return the money to my uncle. Then, in the quest to
earn a little more interest, my uncle kept some money in a
cooperative bank, which closed down. He also invested some
money in small cap funds, which is quite risky according to his age. So, in old age, liquidity and capital
protection should be more important for you. Mistake Number 8: Don't
Trust All Financial Advisors.

Now, I am also a
certified financial planner, and I don't feel good saying that you
should not trust all financial advisors. When retirement money is
deposited into the account, the bank officials know how much
amount is deposited in your account, and that's why they come to
you with investment schemes, needing to meet their targets,
and they give wrong advice. I have seen how wrong
products are sold to elderly people. I would say that you should stay away from any advisor who is selling you schemes in the name of
investment that are not suitable for you. Take your time before investing
and talk to a certified financial planner whom you can trust and who
won't sell you any products. And if you do invest in any ULIP policy or
any other plan on the advice of an advisor, then first ask yourself
why you are doing so, because these insurance
policies reduce the cost returns.

Never make the mistake of
investing all your money at once in the same product at the same time. And if you want to understand how to
achieve your personal financial goals by planning with a
certified financial planner, then message us on WhatsApp at
the number appearing on your screen or check the description box. You can also visit our website
'theartofwealthbuilding.com.' Mistake Number 9: Not involving your
husband or wife in financial planning. Until we are 60 or 65 years old, we
usually handle our work ourselves. But imagine that you have invested
your money in different places, and your spouse has no idea
where the money is invested. When you die, even though the
money is there, they cannot access it. Research shows that
women live longer than men. So in such a situation, your wife
should know about your financial plan. Mistake Number 10: Not
having health insurance. My uncle depended on his
company's health insurance, but since his company's insurance
was not available after retirement, and now he is not getting
health insurance due to his age, and that's why now he has to
depend on Ronit to pay the hospital bill.

So, friends, I request you to
share this video with your parents and ask them to share
it with their friends. If you have learned something,
please LIKE the video, and for more information, you
can check the description box, or you can also visit our website
'theartofwealthbuilding.com'. See you soon with
another informative video. Till then, God bless you all..

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