EVERYONE I know has cried buckets while seeing the movie Baghbaan. No, it's not because of Hema Malini's bad acting but because the storyline touched the most sensitive part of our Indian values and belief systems: Taking care of our elders.
Many of those believing that their kids will take care of them when they get old had a bucket of cold water thrown on them as a wake up call after this movie.
I'm not saying that real life is going to imitate reel life. If that were true everyone's life would have a happy ending - just like the movie did. But what if it were to happen to you? Would you be confident that your child will take care of you the way you've taken care of him? Maybe not.
Its best to be financially set to take care of all your daily needs. Just keep these issues in mind.
1. Don't delay saving
People don't start planning and saving, until it is too late. Late 20s or early 30s seem like times to enjoy life and retirement is decades away. But that's a dangerous view.
Not only will you live longer than your ancestors did but you will prefer to retire earlier, so you're looking at 20-30 years of retirement. This is going to need serious cash.
Also, with reduced job spans, you have lesser time in which to accumulate your retirement corpus. So if you start late, you may never catch-up. The benefit of compounding works to your advantage.
Bottom line – start now.
2. Don't forget emergencies
Life has its ups and downs. Just about all of us are bound to go through good and bad times. The trick is not to be unduly optimistic, and plan for the worst too.
A bad investment could result in losses; there could be a medical emergency or even a natural disaster. Life is quite uncertain. As a result, even small setbacks or shocks can make one's retirement kitty go for a toss.
Be prudent, plan for the worst-case scenarios. This way you are adequately prepared for the bad times, and create a neat legacy for kids if life goes smooth.
Photograph: Vipurva Parikh
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