Tag Archives: retirement

Investment exercise: planning my retirement

How will you get incomes when you get older? Will the public retirement system collapse or will it only give a very low monthly payment? Will my health be good or will I need a lot of money to pay hospitals, drugs or any kind of assistance? There are many uncertainties for our future after we will be 65 or 67 or 70 years old. It depends on the legal retirement age in each country. That is why it is necessary to take decisions as soon as possible to preview and plan your finances for that life period.

T-Advisor investment planner helps you find a plan for your retirement. First of all, we have to answer some questions:

  • The legal retirement age and the life expectancy
  • Your current incomes
  • How much you are going to invest at the beginning and every month
  • Your income level in your retirement and how much public pensions will contribute to it

Retirement planner in T-Advisor Selected life expectancy is the lowest in developed countries. This example accepts a loss in future standard of living and low incomes from the public pension. When you design your plan, be realistic considering your chances to save monthly. Think about several scenarios, as you can repeat the plan so many times as you wish. It is important to calculate different life expectancy scenarios, as you will have to deal with longer or shorter periods with the savings that you have kept before. The younger you begin, the more chances you have to enjoy a better standard of living in the future. After you enter your own figures, our investment planner will ask you about your investment profile: are you risk lover or averse? The higher risk, the higher possible performance… and possible losses. Let’s think you are conservative and prefer lower performances but lower chances to loss your money. If you are not sure, you can answer a short test. Investor profile in T-Advisor Finally, you have a chart with the result. In this case, you have very low probability to keep the selected standard of living. The chart also considers pessimistic and optimistic scenarios. These figures are obtained through statistical calculations based on historical data. You can always set the parameters to evaluate other cases. You have also advanced settings to evaluate inflation and taxes effects. Retirement scenario in T-Advisor planner If you enter, for instance, a higher monthly contribution, your success probability changes abruptly. Retirement scenario with monthly saving change in T-Advisor Last screen shows you a possible allocation of your initial contribution to your investment plan with a projection about highest annual gains and losses. Retirement plan proposal in T-Advisor Saving means to give up current consumption to keep money for future events. Future is always uncertain, but the future of retirement is more uncertain for everybody. If you think that you can survive from your future public pension, you can maybe make a mistake. Currently, there are different products in the market, but a plan for your own needs and situation is the best solution. Our investment planner is the first step for it.