Differences

This shows you the differences between two versions of the page.

--- retire-next-year [2018/06/15 13:33]
171.60.242.59 created
+++ retire-next-year [2018/06/15 14:29]
171.60.242.59
@@ Line 1449: / Line 1449: @@
 Best,
 Mark
+====== Add More to Your Golden Years: Top 10 Career Ideas for Retirement - Part 1 ======
+You've taken a break from your career, you're enjoying the time to yourself but you still feel you can do more. Don't fret. There are now several career opportunities available for retirees. And you can choose one that suits your lifestyle. You can decide just how many hours you want to work and for whom as well. Moreover, these ideas allow you the flexibility to still spend time at home gardening or doing any other hobby that you were looking forward to while at that full-time job. Better still... you can now even convert that hobby into a money-making business.
+Mark Ford's essays in the Retire Next Year series have covered a wide range of simple and doable retirement options, some that don't need very big investments as well. And many of the essays gave you a detailed account of how to go about the suggested ideas. You can revisit some of the essays here.
+In this two-part report, we round up our top 10 career opportunities during retirement. This list is not an arbitrary one, it has been developed after carefully researching what retirees across India have been most frequently dabbling in. It's also a list of options that we see you being able to monetize quickly and with minimum effort. Most of these opportunities already find resonance and demand in the market.
+And yes, they have successfully helped retirees gain that much needed extra income for a better life in their golden years. Here goes...
+Start Writing: Do you have a flair for writing. No? Don't worry. Do you have a story to tell or better still lots of acquired knowledge in your area of expertise? Well, then it's time you get started on writing. The internet is a storehouse of information and in the future it will need a lot more good content to keep its current and future users engaged. Starting a blog maybe a good option and our WBC report Blogging Basics for Beginners will show you just that.
+You can even try your hand freelancing for local newspapers and magazines on topics of your interest. You will find contact details of writers and editors in the newspapers or magazines itself, you can write to them, share samples of your previous work and ask them how you can contribute. And this is applicable for online websites also. Most content sites need a continuous stream of information to keep their readers engaged and they are willing to outsource this function too. Here is one place where your age and experience can definitely work as an advantage - you will have plenty of stories to tell and a storehouse of knowledge from all the work experience you've had.
+An article online says: You do not have to become a professional writer to be a good writer. All that is required of you is innovation and ability to encourage, educate and excite people in your stories.
+And when you feel more confident about your writing skills, put together a book. This could be a collection of your essays, your memoirs or even fiction. The internet provides easy avenues for self-publishing and digital e-books.
+Vijay Laxman Kher, 69, started his career working in the accounts and treasury department of Maharashtra. During his tenure with the government, while working in different departments, he kept honing his skills as a writer. He focused on his written communication skills internally and externally. Post retirement, he finally had the courage to follow his heart and become a full-time writer. He had some experience writing plays, short stories and poems in his college days. He revived this passion and today keeps himself busy writing short stories, plays and radio scripts for All India Radio's Ratnagiri radio station. On busy days, he spends almost eight hours a day working on his scripts.
+Teach what you know: The benefits of teaching are many. You stay in touch with the subject of your interest, you are connected to the youth and you keep pushing yourself to be a more engaging and innovative tutor. In short, your mind is constantly ticking. And as science has proved, an active mind will age much more slowly.
+Teaching can be done through several avenues. You can look up neighbouring colleges and schools and see which areas you can fill. You can be the occasional guest lecturer or you can teach on a more regular basis. Teaching is a flexible career with plenty of opportunities to learn and grow while it also gives you ample spare time in the day as colleges and schools start and shut at regular hours. Giving tuitions from your home or a rented space is another option.
+Take for instance, Sudhakar Bagawde, once he was done working in an industrial unit, he responded to his calling to be an educationist at the young age of 45. Sudhakar started his teaching in a small rented room on the ground floor of a building in Thane. He simply installed 30 chairs and tables and a board and got started. With a doctorate in radioactive chemistry from Bhaba Atomic Research Centre in Mumbai, math and science were his subjects of choice. He now tutors almost 70 students from classes 8-11 and he claims his biggest reward is being among the teens and picking up their slang and colloquialisms... it keeps him alive and up to date with today's youth.
+And if you don't want to invest in infrastructure or even leave your home, the internet gives you a host of ways to teach from exactly where you are. All you need is a computer, web camera and good internet connectivity. Coaching online can be done through Skype where you can see and speak to your student. You can even create content and conduct courses by interacting with your students on email. If you would rather just volunteer your services, websites like Evidyaloka.org and GrannyCloud are online teaching platforms that help you connect with students in India and abroad.
+Consult for companies: At the age of 66, BD Narang makes Rs 8-10 lac as a management consultant enabling companies to restructure and grow. It was only less than ten years ago that he retired from his job as CMD of the Oriental Bank of Commerce. Before he started out as a consultant, he did extensive reading on equities, but most of his knowledge as a consultant was gained on the job.
+Consulting can prove to be one of the most lucrative career options post retirement. Many organisations need the talent and energy of the young to be matched by the wisdom and experience of the old. And that's where retired consultants come into play. What's more as a consultant, you will be away from the day-to-day management of the company, giving you more free hours for other activities like your evening walks.
+Websites like ExpertEase provide a platform for senior professionals to connect with the industry and respond to their needs. Here, organisations seek out individuals for work, mentoring or volunteering opportunities. Professionals with backgrounds in accounting, engineering and marketing to technology, communication, media and administration, for small and medium-sized enterprises, can contribute through such platforms.
+Bangalore-based Prabhakar Banerjee with experience in the textile industry found many assignments to consult textiles houses and garment houses through ExpertEase.
+Convert your hobby into a business: Was there something you would have rather done than sit at your desk during those years when you had to worry about the security of your full-time job or the business that you were running? Maybe photography, sewing, gardening, pottery or art? Then now is the best time to start. Choose a hobby that you've always loved, refresh your skills in it, add a little marketing acumen and get ready to build your own enterprise.
+Several retirees have banked on that one hobby to not only keep them occupied and gain more life experiences but also to increase their bank balance. At 63, Asis Kumar Sanyal, based out of Kolkata, is a successful freelance photographer. In his 31 years as a banker, Asis had never left the country, but today, he has visited more than seven countries for photography forums and assignments. All it took were a few workshops in photography to help him get started.
+Professor Abdul Nayeem Khan, 70, a professor of Hindi literature and retired principal, had once taken a course in fine arts and handicrafts to teach to his students in college. Little did he know that it would open up an avenue for a second career later in life. Nayeem took a keen interest in wood sculpture and created a small workshop for it. Through trial and error, he experimented with everything from sculpted pegs used for tying cattle to toys for newborn babies. In recent years, Khan has also participated in sculpture shows in Mumbai and Delhi galleries, some of which have had very successful sales.
+Exploring hobbies that you can make into careers is essentially about converting something you're passionate about into something that is saleable. While art need not have utility value, most of the other products you create should focus on that aspect as well as it will then create a greater demand. The trick is to create the right mix between what sells and what you like to do.
+Play a part in the travel industry: With the constant influx of travelers into the country, the travel industry is definitely a growing one that is open to innovation and new services. One of the most popular demands is that for homestays and service apartments. If you have a spare room or apartment, you can consider this option for an extra stream of income. And with websites like Airbnb starting in India, this business has become easier to implement and market.
+To start your own BnB or Bed&Breakfast, you need to spruce up the spare rooms that you want to let-out with amenities like a TV, Wifi and a mini-refrigerator; ensure you have a good breakfast menu and be as hospitable as you can.  If your home is in a good location that has easy access to restaurants, shops and local transport services, be sure your home will always be full of guests from across the country and world. In these years of your life, which could otherwise be lonely, you may just find yourself surrounded by people and tales from all over.
+And if you like to travel yourself, you could also design customized tours to places that you know well and take along a group of people with you. Educational and theme tours are a growing niche today with more and more players entering the industry.
+Major General (retd) Harwant Krishan, 61, conducts eco-tours and adventure camps in Solan, Himachal Pradesh. His background in the army got him well-accustomed to nature and he felt he wanted to help civilians enjoy nature in the same way that he had. Krishan, like most army men, had spent a lot of time in the outdoors and he refused to stay indoors during retirement. So after partnering with the government and putting in a chunk of his own savings, Krishan started an eco-friendly campsite in Pine Hills that conducts treks, nature trails and forest walks, as it sensitises people in preserving the environment. He lives on the campsite most of the year to ensure its maintenance and also gives employment to locals to help with the running of his business.
+The possibilities of what you can do during retirement are endless. And of course, one report is definitely not sufficient to chronicle the opportunities available. In our next report, we'll give five more new ideas to explore. Till next time...
+Resources:
+http://www.mytopbusinessideas.com/rural-small-towns/
+http://articles.economictimes.indiatimes.com/2011-06-20/news/29679980_1_grey-hair-retirement-rat-race
+http://www.harmonyindia.org/hportal/VirtualPageView.jsp?page_id=1835
+http://www.seniorexperts.org/
+http://businesstoday.intoday.in/story/choose-your-hobby-as-work-after-retirement-to-continue-earning/1/18847.html
+http://business.mapsofindia.com/business-ideas/for-retired-people.html
+http://www.newretirement.com/Services/Working_In_Retirement_Best_Jobs.aspx
+====== Add More to Your Golden Years: Top 10 Career Ideas for Retirement - Part 2  ======
+In the last report, we promised you five more retirement work opportunities. In the same spirit, these ideas too are fast gaining traction among retirees; they are good money-making avenues and will reflect your best skills and talents.
+So here goes...
+Become a culinary expert: If you've always loved your pots and pans, there's no better time than retirement to start a business with your passion for cooking. From baking to catering for parties or starting a tiffin service, to running your own small café or conducting cooking classes and writing recipe books, the possibilities in the business of food are many.
+After quitting her long-held job with a chemical company, Dolly Fatehi, 70, was getting restless doing nothing at home. And since everyone had always enjoyed her cooking, she took up a friend's suggestion seriously and started her own catering service. A stroke of good luck brought her in contact with food critic Rashmi Uday Singh who sampled her food and gave it a rave review, following which the stream of orders hasn't stopped. Today, Dolly has her hands full from 6.30am to 7.30pm, works out of two kitchens and makes enough profit from her catering services. To top it all, she revels in the aromas of herbs and spices and rejoices in messages from satisfied clients.
+Rita Saldanha, 74, has many talents, she is a famous soprano singer in Chennai, a social worker, cook and baker. Before Rita retired, she worked as a librarian for 30 years. After retirement, she rekindled her childhood passion for baking and now supplies cakes, biscuits, puddings, pies, marshmallows and macaroons to local supermarkets, church groups, parties and women's organisations. But what makes her activity more meaningful is that after deducting the cost of making, she donates the rest of the proceeds to charity. Rita is using her talent not just to keep herself occupied, but also for the betterment of society.
+So put on your baking gloves, buy that extra kitchen equipment, source the freshest ingredients and whip up lip-smacking delights that you'll always be remembered for. Better still archive your delicious recipes, or those from your mother and grandmother, and share them online or sell them as books.
+Get into the wellness industry: The industry for beauty, fitness and well-being is only growing. With the increasing stress in people's daily lives, everyone can do with a few hours of yoga, meditation and even homemade remedies that nourish the body and soul. So if you're an expert in some form of fitness or if you have beauty and health secrets that you can share with the world, see how you can convert them into a money-making venture.
+Just like Dr Sharlene Benjers, 57, did when she opened Dr Benjer's Health and Beauty Spa in Pune more than six years ago. A homeopathic doctor by profession, Dr Benjers had to take a break in her career due to a health condition. But once she recovered, she wanted to do something with all her knowledge and time. So she further researched on herbal remedies and medicines and decided to find cures for stress-related hair and skin problems that people face in their everyday lives. She started off by treating patients with her own homemade creams and lotions and now runs a clinic with services like homeopathic health and beauty care, spa therapies, beauty salon services, and healing through tarot.
+Other than beauty, the world of fitness also has a lot of takers. You can be a fitness trainer or a yoga instructor. This allows you flexi hours, not much investment and keeps you fit too.
+Manohar Joglekar, 71, was a proponent of yoga since a long time, having learned from the greats like B K S Iyengar and Swamy Yogananda. After retirement, word got out that he was good in yoga, and this gave him added confidence to start his own classes. He now conducts camps for corporates and has also traveled to Muscat for a yoga workshop.
+Meditation and healing are also gaining importance in this age. And if you are educated in any form of alternative therapies or if you believe you can help people de-stress by conducting meditation classes, bring together a bunch of people, design short courses with motivational stories, add some mantra chanting, allow the participants to share their own stories and interact with each other. You will be amazed by the number of people who get peace from such classes, often also called satsangs.
+Market products online/offline: If you have the gift of the gab or if you've always been able to promote yourself and your work well, marketing products from home maybe a good option for you. Affiliate marketing is essentially that. It means selling other's products through your own network, online or offline. People who market often work on a commission basis and even take a retainership at times, this covers their basic phone bills, internet and travel expenses.
+TRK Murthi, in his late 80s, continues to sell ads for two media houses, Afternoon Despatch and Courier and Corporate India. With diverse experience in the ad world and PR industry, Murthi had built a good network but could not get a full-time job post 75. Thus he started marketing media space on his own and now keeps himself gainfully occupied even in his golden years.
+VK Anand, currently in his late 60s, had retired from the airforce at the young age of 41. He was neither a graduate nor was he making a lot of money after retiring. But he made it his mission to do something post retirement, he completed his graduation, did an MBA and today sells insurance products and mutual funds, making approx. Rs 2 lac per month.
+Marketing may need a lot of persuasion. It may need hours of convincing people about the benefits of the products you're selling. Sometimes, it also requires you to actively run around town and meet with people. But if you feel you don't have the physical energy to execute it, you can consider marketing online through websites. If you have a product to sell, you can put up ads on other websites that have enough traffic and give the host website a certain percentage. Or, jump on the social network bandwagon and create awareness about your products through them. Being social, online or offline, helps you push your sales better.
+Produce something fresh and healthy: The whole world is talking about the benefits of eating organically-grown food, free of pesticides and chemical fertilisers. And they are paying big bucks for it too. If, in your retirement, you move away from the busy city life, to a place that gives you ample opportunity to grow your own vegetables, fruits and spices, this may just be a good extra income opportunity for you.
+In Common Sense Living, we featured a Wealth Builders Club member Asif (name changed) who bought a cow simply to provide fresh milk to his family. With some knowledge of dairy farming from his days of learning Ayurvedic medicine, Asif was well-armed to look after his cow. His neighbours heard about the freshness of the milk and asked him to sell it to them too. Before he knew it, he was also making and selling ghee. He now owns 14 cows, almost runs a mini-dairy and makes enough money for retirement.
+Starting a poultry business, dabbling in chilli pepper farming, tea gardening, coffee bean farming and a vegetable garden farm are other avenues of growing produce in semi-urban and rural areas. Before starting out, it helps to gain a little knowledge on what grows well in which areas, what kind of soil and sunlight you need and what is the amount of space and investment you will need to make for farming equipment, maintenance etc. You can start out small, trying out one or two varieties of the produce, and then go on to growing more. These can then be marketed to local groceries, shops and neighbours.
+And if you don't want to grow anything yourself, you can look at marketing agricultural products. Just like Hariprasad Trivedi, 81, did. With a background of teaching agriculture in a university in Gujarat, Trivedi decided to use his knowledge to help farmers reduce their hardships. He started his own venture distributing good quality fertilisers and conducting seed quality awareness programs among farmers.
+In cities too, people are now growing their own spices and herbs on terraces and in their home gardens. Chillies, basil, tomatoes and aloe vera are commonly grown. These are then used for their own consumption or packaged and sold locally.
+Be a counsellor: Stress seems to be the new-age disease. Additionally, parental pressure, peer pressure, societal expectations and consumerism are causing several behavioural disorders in children, teens and adults alike. Herein comes the need for someone patient to hear people out and give them sound and unbiased guidance. One must have immense empathy and some background knowledge before entering this field. It would also help to take short courses in your area of interest before you start.
+Dr Yogini Pathak, 70, had studied English and Philosophy and had a background working in municipal schools. After interacting with several students, parents and guiding post-graduate students, she realised she had an interest in parental guidance. Post-retirement, she consults parents at a playschool on the importance of positive parenting and even oversees the school's administration and trains its teachers.
+Similarly, retired additional director-general of police VK Kapoor, 68, had considerable experience in people management and conflict management during his time spent in the police and intelligence bureau. Once he retired, he realised that most people face maximum issues due to stress and this led him to start the Institute of Stress Management and Research in his vacant house in Panchkula, Haryana. He employs professionals at the Institute and himself writes and gives talks at different colleges and universities.
+If you don't want to travel to a school or start your own institute, you can even consult from home. Life coaches have gained immense popularity in the last decade and they conduct sessions at home or on Skype. They often take online courses with established institutes or individuals before entering this line. So if you're full of positivity and optimism and if you feel you can guide those around you in making their lives better and more stress-free, try your hand at counselling. Your years of experience and wisdom are added assets here.
+This brings us to the end of our top 10 ideas for retirement. Of course there are many more ideas and you can choose what you like and give it your own shape and flair. The key is to optimize what you already have, keep investments low and ensure you don't get too stressed in your second career.
+We hope the future sees you explore many of these opportunities and helps you start an extra-income stream to brighten your retirement years.
+Do write in to us with feedback or share your stories and ideas on WBC Conversations.
+Resources:
+http://www.mytopbusinessideas.com/rural-small-towns/
+http://articles.economictimes.indiatimes.com/2011-06-20/news/29679980_1_grey-hair-retirement-rat-race
+http://www.harmonyindia.org/hportal/VirtualPageView.jsp?page_id=1835
+http://www.seniorexperts.org/
+http://businesstoday.intoday.in/story/choose-your-hobby-as-work-after-retirement-to-continue-earning/1/18847.html
+http://business.mapsofindia.com/business-ideas/for-retired-people.html
+http://www.newretirement.com/Services/Working_In_Retirement_Best_Jobs.aspx
+====== Retire Next Year #8: Live a Dream Retirement by Setting up Your Own Cafe or Bar in Paradise  ======
+Millions of middle-aged Indians are living a nightmare. After decades of working and saving, their dreams of comfortable, secure retirements still seem impossible.
+Wealth Builders Club readers are in much better shape. But that still may not be enough to finance the retirement you are looking forward to.
+It all depends on your retirement number. Your retirement number, I hope you remember, is how much money you need to have saved to retire. It's a function of two things. First, how much cash you will be spending during your retirement (I call this your retirement lifestyle burn rate, or RLBR). Second, how much money you have earmarked right now for retirement. For more on your retirement number and your lifestyle burn rate, see Chapter 8 of the e-book 11 Secrets Every Wealth Builder Must Know.
+If you haven't put aside enough money to retire yet, you need to hear this: It is highly unlikely that you can "hit your number" by conventional investing strategies, even if you achieve above- market returns on your stocks and bonds.
+Investment performance can make a huge difference when retirement is 30 or 40 years away. But if you plan to retire in fewer than 30 years, you have to take additional, immediate measures.
+You must spend less, save more, and develop additional income.
+And if your retirement is close-10 years or fewer-then you might want to re-imagine your retirement by opening yourself up to some new and very exciting ideas.
+Imagine If You Could Retire Next Year...
+In this essay, like the rest in the series, I'm hoping to accomplish several things:
+First, I want to prove to you that it is possible to drastically lower your expenses and save more while improving the quality of your life right now.
+Second, I want to give you an outside-the-box idea about creating additional income.
+Third, I want to inspire you to consider some retirement lifestyles that you may have never considered before.
+The great news is that you can enjoy all of these retirement lifestyles on a very ordinary income. And they can be achieved in fewer than 12 months if you start working on them today.
+What I'm offering you, in effect, are options you won't find in any other investment newsletter: wonderful, fulfilling retirement options that you can start enjoying as early as next year!
+Like the rest of the ideas you have been seeing in this series, this is a realistic possibility that might be the perfect retirement you've been dreaming about all these years.
+I'm going to try to give you a picture of what this retirement will feel like. I'll do that by describing the life of someone who is living it right now. I will also identify the key characteristics that make this dream retirement so attractive. I will give you some of the basic numerical data. And I'll mention some of the biggest myths and mistakes people who attempt this kind of retirement fall victim to.
+As a Wealth Builders Club member, you will be getting a very substantial report on this opportunity that will detail how to take action, one step at a time. We are still preparing this report, but you should receive it shortly.
+Dream Retirement # 1: Owner of a Seaside Bar in a Tropical Paradise
+A few miles south of my home in Nicaragua is a small fishing village called Gigante. It is a quaint little town that sits on a bay shouldered by steep cliffs on one side and, on the other, an outcropping of rock islands that resembles a giant's leg.
+Ten years ago, it was practically deserted. But now, thanks to Rancho Santana, the entire southwestern coast of Nicaragua is booming. In addition to Rancho Santana (in which I have a financial interest), at least a dozen smaller residential real estate developments have sprung up in the area. And just a few miles south of us, Nicaragua's wealthiest family is building a very large development, the size of Rancho Santana.
+What this means is that Gigante is now bubbling with nascent commercial activity. Along the town's main road, which parallels the water, a few dozen little shops, restaurants, and bars have appeared.
+One of these places is The Crobar. It is a funky, ramshackle bar that also serves pretty good food. It sits on the beach, so the view is terrific. In addition to food and drink, it offers traveling customers several small rooms to stay in. Above those rooms is a spacious apartment in which the owner lives.
+There are many places to eat and drink at The Crobar. You can sit at the bar or in a seating area adjacent to it that offers sports enthusiasts cable TV. You can also dine in a nice little courtyard next to it or in any one of a half-dozen seating areas that are available on a multilevel wooden deck facing the ocean. The chairs and table settings are eclectic. They even have overstuffed sofas and chaise lounges. It's a very pleasant place to have breakfast, lunch, or dinner or simply to lounge on one of the hammocks, reading a book in the in-between hours. For more active entertainment you can rent a kayak or Jet Ski.
+How I Came up With This Idea
+I was last there about a month ago. I was sitting with my wife K, sipping a tequila-based mojito (I call it a Tequito) and watching the sun set on the horizon. "Life doesn't get any better than this," I said.
+Then it occurred to me: The Crobar was, for the guy who owned it, a retirement dream come true. "This guy- whoever he is-has done it!" I thought. He's escaped the stress of "making it" in the USA and is living like a king in paradise!
+Here I was, a wealthy guy with a big house just a few miles away, yet I was jealous of him. My house in Rancho Santana, cheap by U.S. standards, had cost me nearly half-a-million dollars. The owner of The Crobar had a cooler place to live with a built-in stream of income, a never-ending circle of friends, and a view that was every bit as good as mine. And he did all that, I was quite sure, for relatively small financial investment.
+If I felt I could be happy living his life, then so perhaps could some of my Wealth Builders Club members.
+A Typical Day
+Could you be happy with a lifestyle like this?
+You wake when you want to and spend a half hour walking on the beach in Goa or any other coastal region in India or the world. On the way back, you buy fresh Ravas or Bombay Duck from your favourite local fish vendor. You give the day's supply of fish to your cook (a local lady) and enjoy breakfast served to you on your private balcony. Afterward, you work on your novel or you paint or do some gardening. Then you take a nap.
+You have lunch at your regular table in the corner. Today a boarder who arrived the previous evening joins you: a student from Mumbai. She tells you that she is doing a project, studying about the educational needs of communities in your area. You give her your thoughts.
+After lunch, you check on the day's take so far (Rs. 20,000) and talk to the chef to make sure everything is ready for dinner. Then you take another nap.
+In the late afternoon, you visit some of your friends. At sunset, you have drinks with the district head. You spend the evening at your reserved seat at the bar, chatting with customers and listening to Hariharan sing ghazals.
+Does that sound good?
+Thousands Are Retiring Early
+This is not some far-fetched fantasy. It is a reality for John, the guy who owns The Crobar, as well as for more than a dozen "hippies" who run restaurants and bars up and down the Pacific coast of Nicaragua.
+These people have jettisoned the lives they were living in urban jungles to "retire rich" in a tropical paradise. And they have done it for a fraction of what it would cost to do it in a big city.
+In developing this program, I am thinking specifically of the Wealth Builders Club members who don't yet have the wealth they need (and may not be able to acquire it) to enjoy conventional retirements in more expensive locations.
+In India too, several retirees are exploring options of how to set up restaurants, bars and homestays in smaller towns closer to home. You needn't relocate to another country altogether. There are a growing number of local and international tourists who would love more options for dining and wining. Indians are getting experimental in their cuisine and choices of destination for travel and this trend could work to your advantage.
+The Criteria for Your Perfect Retirement
+I've been brainstorming on this since I came back from Nicaragua. And have identified certain guidelines to ensure that the opportunities we present meet your needs. The guidelines we have identified so far are:
+The opportunity must be located in some sort of retirement paradise: by the sea, in the mountains, in a quaint town, etc.
+It must include not only a great lifestyle but also a way to earn extra income on a part-time basis.
+It must be affordable: i.e., club members who want to pursue it should be able to begin with an investment of between Rs. 25-30 lac and an income of no more than Rs. 1 lac per month.
+It must be relatively easy and realistic: It can't be something that requires obscure skills or technical knowledge or undue hardship of any kind.
+It must be immediately available: Members should be able to make it happen in a year or less.
+This is certainly true of the opportunity I'm presenting today. You could relocate to any country or small city of your choice, if you wanted to, in a matter of months. And you could select a place to open up your own seaside bar, restaurant or cafe in another three to six months.
+How much would it cost? As you'll see below, it can be done with retirement savings of less than Rs 15-25 lac and an initial recurring income (from your retirement account or pension) of just Rs 1 lac per month.
+And that Rs 1 lac is just to get you going. As the bar begins to flow cash, you will be able to bank that Rs 1 lac per month or use it on personal pleasures.
+Here is a rough idea of what it would cost you...
+The Numbers
+Option 1. Buy a lot and build your own funky Crobar.
+To buy the lot (space): Rs 15-30 lac
+To build the restaurant/bar/cafe: Rs 20 lac
+To stock it: Rs 5 lac
+Option 2. Rent and renovate an existing structure.
+To lease the property for two years at Rs 25,000 per month: Rs. 7 lac
+To fix it up and decorate: Rs 4-5 lac
+To stock it: Rs 5 lac
+Income, Profit, and Loss
+You are not going to make a fortune owning a place on the beach like The Crobar. But you can make enough for a happy, financially secure retirement.
+Based on the research we've done, my guess is that, after all expenses, the owner of The Crobar is clearing about Rs 80,000 - 1 lac per month. (This does not count whatever money he gets from renting kayaks, Jet Skis, and rooms.)
+Rs 80,000 - 1 lac per month per month may seem like very little, but in a small town, it makes you a rich man. And if you have some extra passive income coming in, you'll be swimming in money.
+I say that because of the nature of this kind of retirement lifestyle. Living expenses in smaller cities are very low to begin with. On top of that, you would have free food and drink and free use of the "toys." You won't be working, unless you think that hanging around and talking to nice people is work.
+Should You Wish to Undertake This Mission...
+If you think you might want to make a dream like this your reality, you need to do several things right now. The first and most important thing is to actually believe you can do it. I know this sounds like just another story you might read in a travel magazine, a passing fantasy that holds your interest only briefly. But it is a reality-and not only for a handful of hippies in my little corner of Nicaragua but for thousands of others in India too.
+So believe it.
+The next thing you must do (and this will help you believe) is to educate yourself about retiring overseas or in smaller towns. Read stories about people who are doing what you want to do.
+The third thing you must do (and you can do this at the same time as you learn about living overseas) is to learn something about being an entrepreneur. (Of course, if you are already an entrepreneur, you can skip this step.) To accomplish that goal, I humbly recommend several of my own books, which you already have: Ready, Fire, Aim and Seven Years to Seven Figures.
+And then the fourth thing would be to learn more about this particular type of opportunity. To make that easy, we are working to create a business plan for opening your own bar, restaurant or cafe that we'll deliver free to you as a club member soon.
+You can accomplish these first four steps in less than two months. If, after completing them, you are still inspired, the next step would be to travel to your retirement paradise and check it out for yourself.
+We Will Make It As Easy As We Possibly Can
+The business plan we are providing is a very important part of your due diligence. In it, you will discover not only the steps you must take in detail, but also the most common myths and mistakes that hinder people from achieving this kind of goal.
+For example, one of the most common mistakes is to assume that you can open up a profitable bar/restaurant/cafe by catering to a local crowd. In fact, this would be a costly mistake. The reason is simple: Local people simply aren't willing to pay Rs 300-500 for a drink/meal. But tourists are happy to do so. This one simple difference can spell the difference between success and failure.
+Our business plan has identified at least a half-dozen such myths and mistakes that you will want to know about before you commit any time and money to this dream lifestyle. So you will definitely want to read that carefully.
+I'm Serious About This!
+As you know, I make it a habit to put my money where my mouth is. In the case of this particular opportunity, here's what I'm doing. I have placed a few bids on small, seaside properties within a quarter-mile north of Rancho Santana. This is a much, much better location than The Crobar. Because it is better situated, I won't be able to buy these properties for $25,000-35,000. I'll have to pay more. If I can get one at the right price, I'll buy it. If not, I'll take it on a long-term lease. (I've already identified one perfect parcel I can rent for $600 per month!)
+I also have identified several people who could run this for me. One of them is a lifelong friend who happens to be living in Nicaragua right now. It will be a great opportunity for him and a solid investment for me, since the cost of running it will be practically nothing. I'll take a 10% return on the capital I invest and split the profits with my friend.
+The unexpected bonus, or "glicken," as I call it, for me will be a little retreat I can walk to when I want a change from the five-star restaurant at Rancho Santana.
+As I said, this is just one of a dozen retirement opportunities that we are presenting to Wealth Builders Club members. But all of them-along with the corresponding business plans-will be available free only to you, Wealth Builders Club members. We are hard at work completing the blueprint on how to start a beachside bar/restaurant/cafe in a retirement paradise. We'll send it to you when it's ready.
+Oh... one more thing. I will also keep you updated on how my "beachside bar" is progressing. Best,
+Best,
+Mark
+Editor's Note
+Some of you are probably thinking, yes this is possible, we have friends who run restaurants, bars and hotels in Goa, Mangalore, Dehradun, Darjeelingand Pondicherry. I've definitely spent beach days at shacks in Goa which look exactly like the pictures of the Crobar above.
+But Indians don't just leave the country and open restaurants in other countries in their retirement years, do they?
+And in my travels and experiences living around the world I have found that, yes, actually they do. As a young Indian who doesn't love to cook I would seek out Indian restaurants wherever I went, and from a Delhi Darbar in the mountainous country of Tajikistan, to a chain of Sher-e-Punjab restaurants in the beautiful Cambodia, I have met Indian families and retired Indian couples who have are living exciting new lives in different parts of the world. And in low season they come home to India and spend a few months with their families. It's the best of both worlds.
+And they are not isolated. Indian communities form quickly and easily in other countries. So wherever you go you will always have a set of friends to drink chai in the evenings with and celebrate festivals with. In the more than ten years that I lived in different countries, I never had to celebrate a single Independence Day without a community of my fellow Indians.
+So explore retirement paradises in India, there are so many. But also don't close your mind to this second idea of discovering the world. If you have lived in the same place your whole life, carrying the same responsibilities, running the same routines, maybe this can be the chance to see that the world is indeed your oyster, yours to live in and explore, and this plan makes sure that you are not restricted by financial impediments.
+To life's adventures,
+Anisa Virji
+Managing Editor, Common Sense Living
+====== Retire Next Year #8a: Your Personal Business Plan to Setting up a Bar or Cafe in Paradise and Living a Dream Retirement ======
+Welcome to the first Business Plan created exclusively for Wealth Builders Club members - your personal plan on how to retire next year by setting up your very own bar or cafe in Paradise.
+As luck would have it, Mark came upon an establishment in Nicaragua-no, not a bar in a five-star resort, but rather a "funky, ramshackle bar that also served pretty good food," and an ah-ha moment occurred.
+As you read in the previous essay, Mark realized that life was pretty good for John, the owner of the Crobar... and thus dawned on him the idea that starting your own cafe or bar could very well be the answer to your retirement income opportunity as well.
+Insiders' Secrets to Success
+Please note: In putting together this report, we interviewed Mark, our own expert and coach; Alec Singer, a restaurant industry expert; and several entrepreneurs who opened "beach" bars of their own.
+When we first started this project, Mark had several ideas about the type of information he wanted to share with the Wealth Builders Club members. Information that would help members think totally outside of the box if they really needed to reassess their retirement plans.
+He started by identifying some of the criteria that would help to pinpoint realistic locations where someone could live economically, preferably in a tropical paradise, and gain some part-time income by running a bar or cafe. A place where one could stretch his/her retirement fund while "living the dream."
+As a first step in the process, Mark turned to International Living and asked its editors if they had real people doing what he was describing. Was this realistic and doable?
+IL came back with a hearty "yes" and proceeded to give us contact information for individuals who were running establishments, big and small, in different countries all over the world.
+We interviewed them. Many also sent us additional answers to questions, such as...
+What were your biggest challenges?
+What did you do right?
+What do you wish you had known ahead of time?
+What lessons can you share with our readers?
+Are you making any money?
+The answers were heartfelt and genuine. Some stories surprised us. And at the end of the day, during one of our phone calls, Mark realized something.
+Many of these stories have uncovered some hard lessons to be learned. The interviewees have actually exposed some insider secrets - secrets that seasoned - and reluctant - entrepreneurs know instinctively. Secrets, if they could be fully teased out and identified, would help our readers with their own learning curve. - Mark
+And we began to look for the secrets within the hard lessons, the setbacks, and even some failures.
+We identified them. Then Mark referred us to a longtime friend of his, a bar and restaurant owner with more than 35 years experience in the business. Alec Singer, owner of Rick's Cafe near Cleveland, reviewed the secrets we had identified-and added some great-from the trenches-insights.
+The secrets, as we state repeatedly, must be used in conjunction with due diligence in all aspects of creating your business plan.
+Mark's Basic Premise
+An individual can move to a new country or city offering a tropical lifestyle, live economically, and operate a small bar, restaurant or cafe. At the end of the day, he/she will be living in paradise, spending less than he/she would back home, stretching his/her retirement income, and making some additional money working part-time-doing something that is FUN.
+Our Expert Panel
+Mark Ford
+Mark needs no introduction. As a Wealth Builders Club member, you know he is not your typical businessman.
+A former Peace Corps volunteer, he never took a class in business, doesn't read the business press, and doesn't like to talk business. He spends his spare time writing poetry, collecting fine art, and practicing Brazilian Jiu-Jitsu. His neighbours call him a bohemian. But he's also an entrepreneur.
+He started his first business when he was 11 years old, and in the 45 years that have elapsed since then, he has started or co-started dozens of successful businesses-public and private... local and international... retail, wholesale, and direct mail.
+His entrepreneurial experience is immense, even compared to other successful entrepreneurs. At one time or another, he has run or consulted for multimillion-dollar businesses in a long list of sectors... And yes, even bars and restaurants!
+Alec Singer
+When you consider the turnover rate for restaurant ownership, the fact that Alec has been in business in the same location for more than 35 years speaks volumes to his knowledge in the industry.
+A food and beverage reviewer put it simply. "Restaurants, like multimillion-dollar bridges, have breaking points. Often it comes at 8 p.m. on a Saturday night, 30 minutes past the city's most coveted seating time. Hosts are strategically positioning arrivals; bartenders are hard at work crafting cocktails; servers are simultaneously reciting specials, taking orders, and delivering food; and the kitchen is drowning beneath a sea of ticket tape. How a restaurant performs at precisely this moment speaks directly to its competence."
+And it has been proven, for over three decades, that Alec's management is up to the task. He is working as hard today to make sure his customers get the best food, service, and ambience as they did in 1976 when he opened.
+As his longtime friend, Mark has witnessed Alec's perseverance and success. Alec has some useful lessons to share... and if you ever find yourself in the community of Chagrin Falls outside Cleveland, then check out Rick's Cafe for yourself.
+Insiders' Secrets
+The "Insiders' Secrets" have been given the best test of all. The entrepreneurs who shared their experiences with us reviewed our work. The result? Affirmation that our secrets are worth sharing with you, our readers.
+"There is a fine line between secrets of success and formulas for failure."
+Secret #1: Keep it simple. Simple and funky. Profits are in the bar, NOT the restaurant.
+Making money is a simple formula: Take in more than you spend. The more fancy you get with the food you offer, the greater your costs will be. Suddenly you need a cook or a chef; you need expensive kitchen equipment; and when the hydro goes out, you lose a lot more than just cold beer. The profit margins on food are slim at best; the profit margins on bar drinks are much higher.
+Mark: This is one reason a bar is better than a restaurant: just burgers or pizza, keep it simple. It is easier to find staff and you are not out looking for a chef at a much higher salary.
+Alec: You can outfit a beachside or rustic bar much more cheaply than you can a restaurant. You will also have fewer regulations regarding food handling to deal with. A funky bar can be outfitted for a minimal investment, especially if you look for used furniture and equipment and search out auctions.
+Also, with a bar, you can track your sales quite easily with a cash register that you can pick up for a few hundred dollars, rather than an expensive computer system needed to track a bigger enterprise."
+Additionally, the bar inside the restaurant is often the most popular spot. People like cozy and casual-so why not give it to them?
+Restaurants that are high-end and cater to special occasions have a really tough go.
+In many ways, sometimes bar owners and restaurateurs make things more complicated than they needed to be simply because their business models were too broad.
+Mark: My advice?
+Do NOT go into the restaurant business, go into the bar business.
+The secret to making this work is to make it a bar that serves simple food that anyone can make: good burgers, for instance.
+A restaurant is a much bigger and more complicated business... with more requirements in terms of skills and less of a profit margin than pouring drinks and taking caps off beer bottles...
+Keep it simple, but keep pouring drinks!
+Remember the goals you have. After all, this is your retirement!
+You can live in paradise, spend less money on essentials, have a little business, keep it slow, have some fun, meet some people... and make some extra money!
+At the end of the day, you need to follow Mark's motto: Ready, Fire, Aim.
+Secret #2: Target the right customer base. The money is with tourists, not the locals and expats.
+Location is more than the right city or town. If the town does not have a steady stream of tourists, you will be fighting an uphill battle to get enough customers to keep you busy.
+Restaurateurs repeatedly say that catering to the local community is not the way to earn a steady income.
+Who has money to spend Rs. 500 on a drink and a good sandwich? Tourists. Period.
+The location you choose and the size of your potential customer base impacts your bottom line. Restaurant and bar owners have often overestimated how many staff they needed and wasted time and money training and paying more people than their restaurant warranted.
+Mark: There simply are not enough locals with money to provide you with a decent income stream. This is a business, and you have to follow the money. The path leads to tourists.
+When you cater to tourists, you have to be aware of the high and low seasons. There are generally three to four months when weather, including monsoons, shuts down the tourist season. Some try staying open during the slow season only to find that it was a mistake. It is hard to cover your overhead costs while not taking in much-or any-revenue.
+Secret #3: If you keep it simple, you can learn what you need to know.
+Making your dream a reality is not just about your passion to live and work in a retirement paradise. Passion is great-but don't forget to educate yourself with a basic knowledge of how to run a bar.
+Alec: Take a lesson from fast food franchises. They have their costs broken down and analyzed to the smallest detail. They leave nothing to chance. You may not be able to do that in the same way, but a good business plan will at least help you uncover some of the potential cost over runs.
+Secret #4: Focus on the right things: merchandising of your cafe/bar and marketing.
+Once you have the right location and the right customer base and have learned the basics of running a bar/cafe... focus on merchandising and marketing it.
+Eighty percent of your time should be spent here. Creating the right "atmosphere" for customers is paramount. Everything your customer sees and experiences while sitting there creates the uniqueness of your establishment and helps to sell the dream you are creating. After all, if sitting on your bar stool is no different than sitting on a bar stool back home, you are not selling the experience of being on vacation, away from it all, overlooking the water in paradise...
+Mark: Merchandising includes the actual look of the bar... the gestalt. When I sit at the Crobar, the entire decor gives you a feeling of discovering some ramshackle place where pirates might congregate. It is an experience. It includes the stuff on the walls, the furniture, the signage, what the employees wear, and the t-shirts they sell.
+The look and feel goes hand in hand with your marketing. At the risk of stating the obvious, you have to get customers into the seats.
+Mark: Marketing has to be aggressive: happy hour, buy 1-get 1 free deals, whatever it takes!
+Secret #5: Keeping and managing staff is simple with a few systems in place.
+The topic of staffing came up quite often in the interviews.
+Mark: You can find and develop excellent employees if you put in time when you hire staff; fire mediocre employees immediately; and reward your superstars.
+Alec: Don't be afraid to let bad employees go. You can nurture a customer for 20 years, but a bad employee can drive them away in a matter of minutes.
+When hiring, look for a good work ethic, but it's more than that. You also want to look for trainability. You need people who can adapt to your way of doing things and be willing to learn.
+Keeping your staff loyal - and not engaging in theft - can be an issue. Many owners have felt powerless as both food and alcohol stock seemed to "disappear."
+Alec had some good advice: Keeping staff honest can be as simple as an inventory system. In a small establishment like a bar, it is easy to do a quick inventory of food and alcohol at the end of every shift. Everyone knows what is on hand and the inventory is not left to chance or guessing when things "seem to be missing."
+An Old Joke
+There is an old joke about a guy who owns a shot and beer place and he is looking to hire a bartender.
+He interviews the first candidate and asks all of the normal questions one would ask in an interview. Then he asks the last question which is, "How much do you steal?" The interviewee replies, "forty percent."
+He interviews another and at the end asks the question again, "How much do you steal?" The guy says, "twenty-five percent."
+The third applicant goes through the interview and is asked, "How much do you steal?" He replies, "It depends how business is."
+The bar owner then says, "You're hired."
+Alec: Sadly, there is some truth to that.
+I do believe that you could get the right people and the right system in place and a small operation could just require minimal attention.
+An incentive system in which you recognize staff for great work will also pay dividends. A financial bonus, in line with the wages and the amount of money you are making, will go a long way to reinforce staff efforts.
+Additional observations:
+Mark: The bar/cafe must be a place where women can feel comfortable and welcome. There is one common mistake that will cause women to feel less than comfortable. Stacking it with female bartenders and waitresses in skimpy outfits. This may attract men but it won't work for women. To attract women mix attractive men and women on the staff.
+Depending on the city/country you choose, staff may not necessarily speak English. This can be a challenge for you to train and supervise them if you do not speak the local language.
+Poverty and theft can be connected. Reduce the invitation to steal by buying inexpensive electronics like speakers and locking up liquor when closed. Put good systems in place and keep theft to a minimum.
+In some cities/countries, family is more important than anything else to the locals. This has been known to impact a business. If your staff has to attend to a family matter on his way to work, family may supersede his need to be on time!
+Secret #6: Know the numbers.
+Before you make a decision about moving ahead with your bar or cafe, you must have a sensible plan and a budget. You need to estimate all of the main expenses, such as rent, build-out costs, stock, equipment, personnel costs, a liquor license, utilities, taxes, etc.
+Mark: For the sort of properties I'm talking about, you can expect to pay between Rs. 30 - 35,000 per month for rent. If it costs much more than that, you should look for another location.
+Building out the bar will cost between Rs. 2-4 lac, depending on what sort of structure is there and how fancy you want to make it. (Hint: Make it fun and funky, not fancy.)
+As far as equipment goes, stick to the basics. You want some refrigeration, one or two double sinks (washing and rinsing), a few pouring racks, a drying rack... and that's about it except for a TV or two, if you think it will bring in customers. Used equipment is usually much cheaper than new equipment. If you can get used equipment, do. Equipment like this should cost between Rs 1-2 lac.
+You will need one full-time bartender during the day and two people at night. They should cost you approx. Rs. 10-15,000 per month. If you add a cook that will cost you another Rs. 20,000, but I don't recommend that. At least not during the first year. Teach your bartenders how to make paninis, sandwiches and fries. That will be plenty of food to keep hungry drinkers happy.
+One more note on personnel costs. It is important to familiarize yourself with local labour laws in terms of minimum wages, taxes, hiring and firing requirements, vacations, etc. Every city/country has unique requirements. You need to follow the rules. So find out what they are before you start hiring.
+Liquor license fees change from state to state and from country to country. So consult local government rules, apply for the necessary licences and ensure your legal work is in place.
+Utilities-including water, electricity and Internet-should also be accounted for. In India, electricity used for commercial reasons is billed much higher, so you would like to use power saving lighting to reduce your bills. (You do not need air conditioning in casual bars and cafes.)
+So the start-up costs should range between Rs 12-15 lac and the monthly operating costs should range between Rs. 80,000 -1 lac per month
+As you can see, this is a very low financial threshold - especially when you consider that the business could eventually be giving you an income of 1.5-4 lac per month after expenses.
+To be safe, you should have enough capital to take care of a full year's worth of operating expenses. Adding 10% miscellaneous charges to these estimates, that means a capital fund of between Rs. 15-18 lac.
+It is very important to keep both your start-up and also your operating expenses as low as possible. Being successful in the retail market (and a bar/cafe is basically a retail business) depends greatly on keeping your expenses to a minimum. Keep that in mind when you figure out the location, build-out, and equipment purchases.
+Rent or Own?
+One question every bar and/or restaurant owner has to answer is, "Do I rent or buy?" The primary advantage of owning is that the landlord can't jack up the rent once your lease expires and he realizes you are making lots of money.
+But buying a property before the business is proven is a big risk too. What if the venture fails due to some unforeseen circumstances? What if you have to sell but there are no buyers?
+Mark: My recommendation is to get a lease with an option to buy. This way, your initial cash outlay is much lower and you are free to walk away from the bar when the lease terminates. If the bar does well, then you can execute the buyout clause. A lease with an option to buy gives you the flexibility you need.
+Infrastructure Challenges
+In some of the states/countries, electricity can be quite expensive. If you have a restaurant, you will need air conditioning and a number of refrigerators and freezers.
+If you have a bar or cafe, a few ceiling fans will do the trick! And the bar does not even need walls-just a thatched roof. Also, it is possible to have the company whose beer you stock supply the beer fridge. The company gets advertising, and you get equipment.
+The cost and dependability of electricity will definitely impact your bottom line.
+Mark: But if you just operate a basic bar, the worst that happens is your beer gets warm!
+Or as Alec pointed out, you could tie your marketing to the challenges with electricity and buy a gas generator: If the power in the area is so-so, you can become "the place to go" when the power goes out-the only location in town that always has cold beer!
+Additional "Facts of Life" Our Interviewees Learned... and Our Experts Endorsed
+If you are tempted to add different offerings to your business, such as fishing trips, jet skis, surf board rentals... be careful. It can be a slippery and expensive slope if you are not careful.
+Understand the local politics. Why? Because you need to understand who holds the power when decisions that affect your business are being made.
+You do want to be seen as supporting your local community. You will get to know what is important to the community... Supporting its development efforts can certainly be a good PR move.
+Alec: The good thing about living in a small town is you know everybody and everybody knows you.
+If you run a successful bar and restaurant as Alec does, after 35 years you know a lot about the happy and sad events in the lives of your customers. It is not a surprise to learn he supports community projects. Besides typical support for the local football team, he has gone as far as to close his restaurant to regular customers and open it for a fundraiser to support the medical bills of a long-time patron.
+The Blueprint for Success
+Our goal for the Retire Next Year series has always been to keep it simple.
+The Blueprint for Success will provide you with questions to consider and checklists to follow. We don't want you to leave anything to chance. After all, the whole point is to retire and maintain-if not improve-your economic situation. You might be willing to leave something to chance, but we're not.
+Research and Choose a Location
+Research the cities/countries you are considering in detail. It is time for you to drill down.
+Live in the Location
+I think it is important to live in the location you are considering. Observe the locals, the businesses, the expats; sit in the coffee shops and listen to the conversations. This will help you see and feel how local life flows and how fast they move. That speed does determine how many tourists actually come to the island. -Daphne, Honduras Search out websites that have been started by locals themselves. Who knows better than the people who have made the move?
+There are also embassies - government offices in charge of foreign relations-in most countries. They will have up- to-date information on visas and immigration rules.
+For a move in India, you can check with state tourism boards and other government information sources like websites and chambers of commerce.
+Part of your research will be to visit the area you are considering. You may have to take a vacation or two to compare your options and to really see which location will feel like home.
+Once you visit, you need to take your tourist hat off and become a short-term resident to really get to know the community.
+Live in the area you are considering for six to 12 months ideally, but no less than three months. Understand the culture of the region in which you will be living.
+Chances are you will not need a bank loan for your venture, but that does not mean you should not go through the exercise of ensuring you have crossed all of the t's and dotted the i's.
+Your bar or cafe is a simple business idea to provide you with both an income and a fun way to become part of the local community.
+Your Retire Next Year Due Diligence Checklist
+These points are a summary of the secrets from Section 3...
+I have "kept it simple." I have not gotten carried away with the notion of serving gourmet food in a fancy location. My business plan is for a simple bar/cafe. Period.
+The location is right. This is somewhere I can see myself living and tourists frequent the area. I also know when the slow season will be.
+I have made it a point to educate myself by reading some business books and talking with other business owners.
+Once I am set up, I will focus on merchandising and marketing the bar.
+I will keep staff to a minimum until I have a good handle on how things are working and see how the money flows-both in and out.
+I have studied the numbers and have prepared a detailed budget plan with all projected expenses identified.
+I will not buy the property immediately, but rather will take a lease with an option to buy. This will give me time to make sure the business is working the way I envisioned, before owning property.
+Some More Research
+Once you have a location in mind, there is still more work to be done:
+Check out the development plans in the area you are considering. But don't just take the agent's or developer's opinion-go to the town or city officials and find out for sure what changes are on the horizon.
+Talk and listen to the locals and other expats.
+Study when the tourists visit-and when they don't.
+Research the suppliers you will need for beer, alcohol, equipment, food... Ensure that you can get what you need locally, at a reasonable cost.
+Step back and look at the infrastructure. How reliable is the Internet service and electricity? What happens to the roads during the rainy season?
+Find out what other small businesses are really paying for:
+Electricity
+Water
+Property maintenance
+Garbage removal
+Television, telephone and Internet
+Gasoline
+Food and liquor supplies
+Property taxes
+Costs of permits and licenses
+Financial Plan
+Mark has covered the financial information in detail. But do your own analysis based on your actual costs. Knowing what your break even number is will help you identify quickly when you need to make a change. You don't want to look back and say "we did not realize it but we were bleeding money for months."
+Buying Property
+A great property deal may be tempting but always practice due diligence.
+Choose a reputable real estate agent who:
+Can provide the names of at least three previous customers as references.
+Is willing to show you any property you're interested in, provided he/she actually represents the seller.
+Doesn't object when you mention hiring an attorney.
+Never hand over money without first retaining a reputable real estate agent and/or lawyer to review the contract.
+Don't buy into grandiose schemes for future development.
+====== Retire Next Year #9: Health and Medical Care in Retirement ======
+In today's essay, we want to discuss the level of medical care you should aim for wherever you choose to live in India or abroad. It's something that should be a great concern for anyone upwards of 45 nowadays. As any setback in your health can put you back by a couple of lac rupees in today's times.
+**Myths about Health Care in India**
+Many people believe that India has substandard medical care as compared to the rest of the world. Many tourists are afraid to travel because they fear getting injured or sick here. People who have gotten sick or injured, rush home so they can get, what they believe, is better treatment.
+But Indians living in Singapore and Dubai, when they need medical treatment, fly back to India where they can get it done cheaper, faster, and - according to them - better.
+There are certain medical problems that Indian hospitals are especially good at treating. In fact, India is increasingly becoming known for its health tourism. And it is almost always significantly cheaper. For instance, a private nurse in Singapore can easily cost 100 Singapore dollars per day but in India an equally qualified nurse might cost just between Rs. 800-1200 for a 12-hour shift, depending on the needs of the patient.
+Here are a few examples of what we're talking about...
+While visiting Chennai, Rakesh Mehra, a retired IT professional based in San Jose, saw an eye doctor. He liked the doctor and the modern facility so much he decided to have laser surgery there. He estimates he saved up to 50% by having it done in Chennai, instead of back in the States.
+A visit to a dentist for an annual check-up is never a pleasant experience. But in India, it is. The staff is friendly, professional, and genuinely happy to see you. Trained with degrees from across the world, dentists today have state-of-the-art clinics with reclining seats, flat-screen TVs and X-ray machines that can get you a diagnosis instantly.
+A dental check-up in India can cost between Rs. 1000-1500. If you include a cleaning, it is an additional Rs. 1500. In the U.S. or any other country, you would be paying two-four times more at the minimum.
+"Since my husband needed cornea transplants, our first priority in Mumbai was to find a cornea specialist," says Uma Raheja, a retiree who moved to India recently. "A visit to the specialist costed us Rs. 2,000. Compare that to our visits with an eye doctor in Houston: $200-450. And the appointment takes much longer in Houston." Uma feels her surgeon in India is equal in skill to the U.S. doctor.
+Health care costs are undoubtedly lower in any part of India than in other countries. Despite all the medical scams, India still delivers considerably well on several grounds, like affordable medication and technical know-how.
+And the care in private hospitals particularly is considered top-notch. It is more personal than in other countries and doctors also make house calls.
+**Prevention is Better Than Cure**
+But what are all the must-haves to ensure you get the right services at the right time... and that you don't lose all your money in your golden years to hospitals?
+Here is a quick check-list of what to keep in mind:
+Find an insurance plan that works for you
+India has many good health insurance policies. And the sooner you get hold of one, the better. If you have started using health insurance prior to the age of 61 years, the hassles of acquiring it are fewer. Several insurance companies organise annual health check-ups, have an auto-renewal facility and sometimes like in the case of Religare Health Insurance also pay for a day-long treatment in a hospital, in addition to their other benefits. But do go through the plans closely with your insurance agent and understand exactly which costs are taken care of and which are not. But do compare plans before you settle for one.
+Build a rapport with a local doctor
+Earlier, people had family doctors and many still do. But what works well is to find a general practitioner in your neighbourhood who can help you with small issues that don't need a specialist. This way you won't get worried about every cold and fever. GPs are generally cheaper in their fee structure and are very useful in emergencies too. You can also consult them for good surgeons and specialists when needed.
+Get regular check-ups
+It's a good habit to regularly go for check-ups and recommended blood tests or any other tests that you need if you suffer from any ailments. If smaller issues are taken care of in time, it will prevent any further escalation of the health issue. Many private clinics also conduct free health camps that you can avail of.
+Lead a healthy lifestyle
+And of course, exercise regularly, go for walks, do light weights in the gym to build your bone density, eat a balanced diet, in moderation and at regular intervals. Get enough hours of sleep, keep your mind alert and remain social to avoid spells of loneliness.
+Quality of the Care in India
+In the bigger cities in India, you'll find hospitals with state-of-the-art equipment. You'll also find specialists in all fields and physicians with private clinics. Many trained abroad. Generic medicines are widely available and much cheaper than anywhere in the world. So are brand-name medicines.
+Hospitals are top quality, and health care providers trained well. Doctors make house calls in some towns and cities, and most speak English.
+You'll have no trouble finding a chemist in big cities. The chemists are usually knowledgeable and helpful. You can also get medicines available in the U.S. and Europe often without a prescription.
+Outside of the major metropolitan areas, clinics offer basic services. When you need more care, you will need to travel to larger facilities in nearby cities. One disadvantage is the lengthy waiting periods for appointments in most clinics and hospitals. And sometimes the lack of rooms and vacant beds.
+Something that we don't discuss conventionally is the use of homeopathic care. India has a booming natural remedy industry. You may dispute the healing powers of homeopathic remedies, but there is no denying that natural herbs, cheap massages, and tons of fresh fruit and vegetables are good for your mind and body.
+Chemists in India are plentiful. You'll find pharmacies associated with private clinics, located in or near hospitals, and inside supermarkets.
+Brokers (agents) normally sell private health insurance in India-and reasonably priced. These brokers act as middlemen between the customer and the insurer. They are not usually loyal to just one insurance company, so they can quote you a variety of options and rates.
+A large percent of international tourists come specifically to take advantage of the country's private medical services, mostly eye surgery and dental care. The reason, of course, is cost.
+Private health care costs are about a third of what you'd pay anywhere else in the world. Medicines are also much less expensive. And prescriptions are often unnecessary. Dental work, too, is at a much lower cost than elsewhere.
+There are plenty of public hospitals and free clinics in India, and they provide adequate care. But there are some problems. Waiting rooms are crowded. Not all of them accept credit cards. Not all of them will accept your insurance. Not all of them can handle your particular medical needs.
+**Don't Let Health Care Prevent Your Retirement**
+Health care is an important part of retirement but one you needn't worry about if you take necessary steps. No matter where you live in India or in the world, ticking off certain checklists always helps in keeping you in good health, both physically and financially.
+Health care in India is cheaper and better than most places. It is also more personal, and there are a ton of options. Of course they can confuse you and there are many drawbacks, but start researching on the subject now, so that you can adequately equip yourself for your golden years.
+====== Retire Next Year #10: How to Keep Your Enthusiasm Alive in Retirement ======
+Last week I saw the movies The Best Exotic Marigold Hotel and The Second Best Exotic Marigold Hotel. I saw the sequel first since it was playing in the cinemas, and I loved it so much that I rushed to get the first part and saw that too.
+What really thrilled me about both the movies was the spirit of the people in retirement. They didn't let age, place, health or circumstance stop them from going out and starting a whole new life in a totally different place.
+For those of you who haven't seen it, do watch both parts as soon as you can. In the meanwhile, here's a brief synopsis of the movies:
+A bunch of British retirees decide to spend their retirement in Jaipur, India, in a hotel that has been launched by a young entrepreneur. The hotelier's dream is to recreate his father's property into a beautiful home for the elderly. A ramshackle property with few amenities, the British occupants are first aghast but then slowly adjust to India and its ways. They decide not just to survive here, but to thrive. Each one of the occupants of the hotel, finds a new purpose or a new love here, which goes into giving their life new meaning and contentment. And while doing this they piece together many of life's truths too.
+The movie made retirement look good. And even at my age, I was tempted to check into that hotel. It made me feel hopeful, it made me feel alive, and it reinforced the belief that I could dream at any age and make a go of those dreams too.
+And while the movie may be just that, a story well told, it did leave behind a lot of learnings that I felt I should share with you all at the Wealth Builders Club. We've been doing the retirement series for a while now and Mark's been giving great retirement advice and many ideas on earning and living, which are not only doable but can also be quite lucrative and satisfying. Some of those ideas are reflected in the movie too, making you visualize a path to their fulfillment much more clearly.
+But more than the ideas, it's the spirit and enthusiasm of the characters that came out very strongly in both the movies. And these positive attitudes are what I'd like to talk about in this essay.
+You're never too old to move
+You've probably lived in your city enough and taken care of kids and grandkids for as long as you can remember. But if you feel it's now time to explore a new way of living in a completely new city or country, don't hesitate to do so. In fact, several retirement homes and resorts in India are now offering a Marigold Hotel equivalent with all the amenities, health care and retirement learning opportunities at affordable pricing.
+What's helping the growth of this trend, is that it is no longer children who are checking their elderly parents into these homes, but retirees who are choosing this option for themselves. They have realised that this opportunity will actually create a healthy distance from their old lives, and give them more avenues to explore a peaceful life with like-minded people. Some of the common names in India are LIC Care Homes, Serene Senior Living, Dignity Lifestyle, Aamkosh Eighty-One, Age Ventures India, Gold Age, and Clover Renaissance Pune.
+Most of these are started by builders who are already familiar with the needs of senior citizens. They are present across smaller towns like Coimbatore, Kasauli, Bhubaneshwar, Jaipur, Raigad and also on the outskirts of metro cities. An article on Harmony India talks about how these properties go beyond the basics like laundry, house-keeping, security and doctors to provide various recreation activities as well. It reports that, "Classic Kudumbum in Chennai has an Ayurvedic centre, Ashiana Utsav near Gurgaon has a golf course for seniors, Athashri in Pune has a special pool for hydrotherapy."
+You can sell your skills at any age
+One of the best aspects of the movie was how some of the characters financed their own lives by taking up jobs using skills they already had or doing things they enjoyed doing. For example, the actor Judi Dench, the main protagonist in the first film, teaches conversational skills at a call centre. She's British, knows her language well and wants to help others with her experience. Similarly, another character Douglas, becomes a city tour guide, often taking help from a local boy who helps him remember the script. He enjoys knowing more about the city and this gives him one more opportunity to do so.
+There will always be something you know at your age that others don't and can benefit from. Many employers are considering the wisdom of age very seriously and once again employing senior citizens in part-time or consultant positions. A recent article in The Economic Times reflects this sentiment where new-age companies like PepsiCo India, state that, "a mix of age groups is important because the company wants to strike a balance between "experienced veterans and fresh blood"."
+Besides that there may be other talents you have that you're waiting to explore. Take for instance, an ex-arts and crafts teacher, Nischinta Gokhale who always had a passion for flowers. She decided to dry up the flowers in her garden and use them to make wall hangings and greeting cards. She has even given her art form a name, Parna Chitra. Her great attention to detail and neatness are reflected in her exhibitions in Mumbai and other parts, where sales have been quite upbeat.
+You can learn a new language
+Contrary to popular belief, the functional aspects of language can be learned at any age. So if you think you want to move to another city but are afraid because of the language barrier, don't be. You can in fact pick it up easily with a little assistance, and you will actually be less inhibited to speak at your age. Just being among the locals will give you enough exposure to the language. Additionally, you can take some time each day to learn it from a tutor or through online classes.
+The benefits of learning the local language are many. One, of course, like you'll see in the movie, you can bargain with local vendors. The others being, an easier assimilation into the culture of the place, being able to make friends faster and getting your work done more efficiently. But the most important reason to learning a new language in your later years is that it keeps the brain more alive and alert. According to an article on Sixty&Me.com, research shows that, "...learning a second language rewires your brain and may increase the efficiency with which information is transferred from one area to the next."
+While learning the language, a point to keep in mind though is to not sweat the grammar. The idea is to get the message across. So don't worry about the semantics. Instead learn phrases for everyday usage like local greetings, ordering from a menu card, buying veggies at the market or giving your driver directions. A functional knowledge of the language is all you will need to get by.
+You can help bridge cultures
+You are truly an emissary of the city or country you belong to. And at the age you are at, you have enough knowledge and wisdom to share wherever you go. So, if you're from UK and the ritual of having tea at the right temperature is of utmost importance to you, as it was for Mrs Donnelly in Marigold Hotel,then that's the information you can share.
+If you are rich with information on the art and culture or even industry of your city and country, you could probably conduct small workshops in the place you inhabit. Initially you may just have a handful of students, but once word of mouth goes around you'll be the go-to person for all information on the place and its heritage.
+You can also involve yourself in NGOs that are eagerly looking for people of all ages to impart their knowledge and skills to the beneficiaries. They especially want volunteers and teachers to give them exposure to different places in the world that the students may never have an opportunity to go to themselves and visit. Your role here will become very important as you will provide new insights and open up a whole new window to the world for those lesser privileged.
+You will find the support you seek
+A big fear for anyone at any age is to be alone, either in your own city or elsewhere. But like the popular axiom goes: man is a social animal by nature. Everyone is looking for someone to share their lives and stories with. Many in their golden years are actively looking for companionship and even love. And why not, there is no reason why you should be alone when you don't need to.
+The movie Marigold Hotel brings this out as one of its central messages. Many silvers at that age are afraid to commit for fear of starting all over again in relationships. They also carry the heavy weight of the memories of their spouses, if they are no more. But this approach is soon changing and many wish to spend the last few years of their lives with someone rather than being alone. They are willing to give love and companionship one more chance. Niche dating websites for seniors like eHarmony and the popular Shaadi.com are also reflecting this trend.
+But if romance is not for you, simply become a part of other groups in your city that share your interests. If you're into sports or cigars or books, you'll easily find a group that has similar interests. You can be an active part of this group and get together with them to enjoy some fun times.
+Thus there's no reason why retirement should be all dull and dreary, waiting for the god of death Yamraj to come and do the needful. Instead, check into the hotel of your dreams, make new friends, learn new skills, pick up new languages and live a life of good health and cheer.
+====== Retire Next Year #11a: How to Plan for Your Retirement Early ======
+Builders Club India
+In the last essay, we mentioned you need to plan in advance for your retirement, to
+Fight the inflation bug
+Cover your daily living expenses
+Cover your medical expenses
+Deal with uncertainties and emergencies
+Explore places and take up hobbies during retirement
+Despite the aforesaid veracities, through experience we can say that we often hear excuses of putting off retirement planning for another day.
+"I have enough time to go before I retire, so why rush?" that's what many say.
+This essay makes you recognise how procrastination can be a prime enemy in your quest to pursue a comfortable retired life.
+It is vital to recognise that if you plan while you are young, you benefit from something that is not available to all - 'TIME'.
+As it is said, "the early bird gets a bigger pie". Starting late is disadvantageous since it gives you lesser time to grow your retirement kitty. Also, as you grow older, your risk-taking capability decreases and there is even a possibility that you may fall well short of your target.
+So here we highlight some advantages of planning your retirement early...
+It offers you greater flexibility
+Having adequate time grants a degree of flexibility to your retirement plans. It gives you the opportunity to explore various investment options and avenues.
+For example, over longer time frames, equities are known to outperform other asset classes like gold, property and bonds. The key here is "longer time frames". However, over shorter time periods equities can be the most volatile asset class.
+Hence if you wish to gainfully utilise the power of equities to build your retirement corpus, making an early start is imperative.
+Power of compounding - 'the eighth wonder' - will play its role
+The single biggest advantage which can be derived from making an early start is the opportunity to benefit from the power of compounding. To simply put, this is the ability of an asset to generate returns, which are reinvested for generating higher returns. Longer time horizons enhance the compounding benefits.
+Let's understand this better with an illustration...
+An early bird gets a bigger pie!
+ 	Ajay	Sanjay
+Amount invested (Rs per month) 	10,000	20,000
+ Tenure of investment (years) 	30	20
+ Returns (% per annum) 	8	8
+Maturity amount (Rs) 	1.50 Crore	1.19 Crore
+(The above table is for illustration purpose only. The characters in the illustration are fictitious)
+Ajay and Sanjay (both 30 years of age), wish to make investments to build a corpus for their retirement. Ajay starts immediately with monthly investment of Rs 10,000 earning a return of 8% p.a, while Sanjay postpones and starts investing after 10 years. But to make up for the lost time, he invests twice the amount i.e. Rs 20,000 each month at 8% p.a. Both of them would like to retire at the age of 60 years, whereby Ajay gets an investment horizon of 30 years, while Sanjay has 20 years until retirement.
+At 60 years of age, Ajay will have a retirement corpus of Rs 1.50 crore as compared to Rs 1.19 crore accumulated by Sanjay.
+Despite doubling the investment amount, Sanjay fails to match the sum earned by Ajay. This proves that the earlier you start; the longer is the investment tenure you get (30 years vis-a-vis 20 years), which makes all the difference.
+The message is clear - by giving your investments sufficient time to grow, you can gain from the power of compounding.
+Yet, why do many of us fail to plan for retirement early?
+Many of us are unable to set aside the requisite amount of money needed for retirement. We can contribute only a part of it, not all. As a result, we end up postponing our plans.
+Another reason for failing to start is that a significant amount of money is often spent on providing for our present lifestyle i.e. shopping and entertainment binges, leaving very little for retirement. While the importance of satisfying present needs cannot be denied, it does make sense to take care of our future as well. We should strive to strike a balance between the two.
+Finally, perhaps, making a retirement plan and putting money aside for the same acts as a reminder of the eventuality - retirement. Maybe the thought of growing old and leading a rather sedentary lifestyle brings with it a certain degree of discomfort and discourages some of us from working towards our retirement plan. However such mind-sets need to change. Looking the other way will only worsen the situation. The solution lies in accepting retirement as an eventuality and being adequately prepared for it.
+The right course of action is to start off with what you have and make up for the deficit at a later stage. On the other hand, if you decide to simply wait for an 'opportune' time, it might be too late by the time you start. Making an early start is your best bet at being prepared!
+Planning for your golden years
+Now here is a case study of one of our clients who had recently come to us for planning his finances. He was clear that he didn't want to be dependent on anyone after his retirement. We strongly acknowledged his premise, and thus want you to learn by his example. Let's take his case and see how you can also start planning for your golden years.
+Personal Details
+Name	Mr. Abhay (name changed)
+Age	35 years
+Retirement Age	55 years
+Dependents	Only Spouse
+Life Expectancy	85 years
+Income	Rs 1,05,000 per month
+Expenses	Rs 75,000 per month
+Abhay a 35-year-old married individual wanted to retire at the age of 55 years. His spouse was the only member of his family dependent on him. He and his spouse were expected to live till 85 years as per their family history. He was earning Rs 1,05,000 per month, while his expenses were Rs 75,000 per month, thus he was left with a monthly surplus of Rs 30,000.
+Assets
+Sr. No.	Type of Assets	Amount (Rs)
+	Equity Mutual Funds	1,000,000
+	PPF	600,000
+	EPF	500,000
+	Bank FD	1,000,000
+	Gold Mutual Funds	300,000
+	Residential Flat (Self-Occupied)	10,000,000
+	Cash in Bank	600,000
+Total	14,000,000
+Liabilities
+Sr. No.	Type of Liability	Amount (Rs)
+	Home Loan	4,000,000
+Abhay's biggest investment was his residential house of Rs 1 crore for which he had an outstanding home loan of Rs 40 lac The Equated Monthly Installment (EMI) of Rs 35,000 per month, is already included in his monthly expenses mentioned above. A small proportion of his total assets was invested in equity via equity Mutual Funds. Some of his investments were in debt via Public Provident Fund (PPF), Employee Provident Fund (EPF) and Bank Fixed Deposit. He and his employer together contributed Rs 4,000 per month in his EPF account. He was also maintaining around 8 months of expenses as contingency reserve in cash in bank.
+And what was Abhay's Financial Objective!
+He wanted a peaceful retirement without any worry of managing his regular expenses after retirement. And thus, he approached PersonalFN for guidance for building a retirement corpus and the asset allocation he should maintain to achieve the same.
+Retirement corpus required by Abhay...
+As seen earlier, Abhay's monthly expenses were at Rs 75,000/- (including his EMI of Rs 35,000 per month for home loan). But since his home loan was going to be paid off by his retirement age, his EMI amount (of Rs 35,000) was not required to be taken while planning his retirement. Thus instead of Rs 75,000 as expenses, his expenses in current terms to maintain the same lifestyle post retirement were taken as Rs 40,000 for planning purpose.
+He also wanted to make a provision of Rs 1 lac per annum for travel and heath care expenses which was over and above his regular monthly expenses. Assuming inflation of 7% and post retirement return of 8% he required a retirement corpus of Rs 5.84 crores at retirement.
+PersonalFN recommended him the following:
+Change his Asset Allocation
+Since Abhay was just 35 years old and wanted to retire at 55 years, he had a sufficient long time horizon of 20 years. Thus we advised him to invest a dominant portion of his portfolio in equity, which until now was skewed towards debt instruments. This is because, equity as an asset class has the ability to beat inflation over the long-term. On the basis of the above and high monthly surplus, we had recommended him to allocate 70% of his investments in Equity, 20% in Debt and 10% in Gold.
+Redeem existing Sector Funds
+In his mutual fund portfolio Abhay had some sector funds which were not suitable for his risk appetite. So, we recommended him to sell those and reinvest the redemption proceeds in diversified equity mutual funds. Assuming a return of 15% on equity, his existing investments in equity mutual funds can be expected to give him Rs 1.64 crore at retirement.
+Start Systematic Investment Plan (SIP) in diversified equity mutual funds
+We recommended Abhay to start a SIP of Rs 21,000 per month in diversified equity mutual funds for 20 years. Assuming a 15% return on equity, his fresh investments in equity mutual funds can be expected to give him Rs 3.18 crore at retirement.
+Keep his PPF and EPF account active until retirement
+The Public Provident Fund (PPF) account which he opened 5 years ago, still had 10 years to maturity. We advised Abhay to extend this for another 2 block of 5 years i.e. total of 10 years, after original maturity. Abhay was also advised to invest Rs 6,000 per month before 5th day of every month till retirement. His regular investment in PPF account will give him around Rs 63.55 lac at retirement, assuming 8% return on PPF.
+Moreover his Employees Provident Fund (EPF) account is expected to give him around Rs 48.35 lac at retirement.
+Allocate a portion of his investment portfolio in Gold Mutual Funds
+Gold mutual funds are a good way of investing in gold. So we advised Abhay to hold it and invest further Rs 3,000 per month for 20 years. Assuming a return of 7% on Gold, his investments in Gold mutual funds can be expected to give him around Rs 27.83 lac at retirement.
+Thus on the basis of the above advice, Abhay is expected to raise a total of around Rs 6.21 crore at retirement as against required retirement corpus of Rs 5.84 crores which would help live a blissful retired life. He is able to achieve his retirement goal comfortably mainly because of proper asset allocation (which he needs to follow) and of course the advantage of starting early. If he would have delayed it by another few years and continued to invest mainly into debt, then it would have been difficult for him to achieve his goal.
+We recognise that personal finances may vary from person to person. But we are of the view that it is vital to make a prudent start to your retirement planning, and preferably at the early stages of your economic life cycle, so as to help you lead a comfortable retirement.
+After all, you want to live comfortably after having shouldered your responsibilities and enjoy the fruits of your life-long efforts in the second innings of your life.
+This article has been authored in partnership with PersonalFN, a Mumbai-based Financial Planning and Mutual Fund research firm known for offering unbiased and honest opinions on investing.
+====== Retire Next Year #11: 5 Top Reasons You Need to Plan for Your Retirement Early ======
+Editor's Note: Living in the now has some disadvantages... we forget to plan for the distant future. We believe retirement is not for us... we have time, energy and a lucrative business or job... and you think, shouldn't that do? Take care of today and tomorrow will take care of itself...
+But that philosophy only goes so far. If you begin to put a retirement plan into action right now, you can save yourself distress and anxiety in your golden years. In fact, you may just have enough to pursue everything you dreamed of doing in retirement.
+To give you your dream retirement, Wealth Builders Club India has partnered with PersonalFN to tailor-make content for our club members. This content will guide you through the whats, whys and how-tos of investing in retirement. And these will be corroborated with extensive research and case studies that are cornerstones of PersonalFN and WBC's content.
+This is the first of a two-part essay. We look forward to hearing your feedback on this new initiative. Do write into wbc@commonsenliving.co.in or feel free to discuss it with other members on our forum, Conversations.
+"Life is full of uncertainties. Future investment earnings and interest and inflation rates are not known to anybody. However, I can guarantee you one thing... those who put an investment program in place will have a lot more money when they come to retire than those who never get around to it." -  Noel Whittaker
+Noel Whittaker is an eminent financial wizard, who is also a bestselling author. What he brings forth is an interesting point that many of us forget to pay attention to while we're busy attending to our daily responsibilities. Sometimes a lot of our lives are spent just thinking about getting through each day. Long-term planning often takes a hit.
+We spend most of our youth and middle age pursuing life goals and dreams but seldom worry about retirement years when we may not have enough strength, wealth or health to pursue them with the same fervour. We envision a peaceful and systematic course of life, but sometimes all doesn't go as planned. Economies change, earning capacities take a beating and age too only permits a certain amount of working hours.
+Your current goals and dreams like buying your dream home to your dream car, giving your child the best education or dream wedding are all important. But what about your one, unavoidable, key life goal, i.e. your own retirement?
+Have you taken a break from the pace of everyday life to spare a thought for your looming tomorrow? Because, whatever kind of retirement you envision for yourself, whether you are ensconced at your comfortable dream home with loved ones or out travelling to exotic and faraway destinations - having adventures that were always on your bucket list - retirement planning is absolutely and completely crucial to shape the retired life that you want.
+And planning early can only give you an edge in this area. Because if you plan and save in the years that you're healthy and active, then sitting back and putting up your feet in retirement may actually be a possibility.
+To help you start planning for your retirement as early as you can, we will first help you put in perspective why exactly you need to plan well in advance.
+So here are 5 reasons why you need to plan for your retirement much earlier than you thought.
+To fight the inflation bug
+Inflation is the much-dreaded word... at any age. And rightfully so... the inflation bug can eat into your savings and reduce the purchasing power of your hard-earned money... You need to earn more to combat it but eventually, you enjoy much less from the same amount.
+Basic expenses only keep increasing - from veggies and clothes to appliances and bigger buys, you may already be feeling the pinch of doling out a higher amount for your necessities. The prices of goods and services have been steadily rising in the last few decades, and will continue to rise until you reach the retirement age.
+This means that you will be paying more for everything in the future. From grocery to travel to accommodation, everything will cost more in the next 10-15 years. But if you begin foreseeing the distant future and planning for the long-term, the future may not seem so bleak and expensive.
+In fact, a good retirement plan will only help you build a retirement corpus keeping in mind inflation, life expectancy and rate of return. This will ensure you live a comfortable life in retirement.
+To cover your daily living expenses
+Not many people get pensions or gratuities post retirement. The days of government jobs with fixed amounts coming in during retirement is no longer a reality for many. Even for those who do receive them, the amount is generally not big enough to cover all of their expenses. They often have to find alternate income opportunities or stay in the work force as consultants on a part-time basis.
+But life doesn't end at retirement and the daily grind continues. Rent and bills have to be paid, domestic help need salaries and daily expenses need be taken care of like entertainment, transportation and other social activities. You may even want to do some charity in your retirement.
+Thus, the absence of a regular monthly income during your retirement years could become a nightmare... but one you can definitely avoid with a little foresight and strategy. Retirement planning will make sure the golden years of your life are just that... golden.
+To cover your medical expenses
+The umpteen number of tests and doctors' visits can set anyone back at any age. To add to it, the intensity of diseases and their onset at much younger ages, is affecting people's health and wealth in a much bigger way.
+As age progresses, the number of health issues and emergencies could increase. And medical expenses bear the potential to create a huge hole in your pocket. Not to mention the medical costs you might have to bear for your spouse or children.
+These days, even minor dental treatments can cost you a small fortune. Mediclaim or health insurance policies do not always cover all your medical expenses. In such a scenario, you would be forced to pay for these medical bills from your own pocket. And retirement planning will make sure you are prepared.
+To deal with uncertainties and emergencies
+If you look at the way the recent earthquake in Nepal destroyed the homes of hundreds in just a few seconds, you know how natural disasters wait for no one. They come when they have to and take what they have to. Life is like that... uncertain and unpredictable, often leaving us unprepared.
+Natural disasters, loss of loved ones, financial difficulties can throw us for a financial and emotional toss. For such times, one needs to build a contingency fund to cover you. In times of turbulence and turmoil, it helps to have some funds kept aside to start-over and make sure these situations don't throw you too far off course. These contingency funds will at least ensure you can cope.
+In order to deal with life's adverse situations and unexpected circumstances, it thus becomes imperative to do some financial planning early.
+To explore places and take up hobbies during your retirement
+Now, retirement can be a really fun time. You have all the time to do exactly what you wished you do in those years when you were strapped to your office desk. You can explore hobbies, join an NGO, start a new business may be, or simply travel and explore new places.
+But for you to be able to relax in your golden years and do everything you wished to, with a free and easy mind, you need financial resources to be allocated wisely much before retirement.
+Therefore to live a blissful retired life from the very beginning, you need to start doing some planning from today. Building a retirement corpus that keeps in mind inflation, life expectancy, rate of return and so on, needs some time and strategy.
+In this essay, we've just stated the reasons for planning your retirement well in advance. In the next essay, we will give you tips on how to go about doing this... you will see how exactly early retirement planning can make a quantum difference to the quality of living in your golden years! Stay tuned in...
+This article has been authored in partnership with PersonalFN, a Mumbai-based Financial Planning and Mutual Fund research firm known for offering unbiased and honest opinions on investing.
+====== Retire Next Year #12 What To Look Out For In A Health Insurance Policy? ======
+Builders Club India
+Editor's Note: When we sent you the Retire Next Year essay on Health and Medical Care in Retirement, WBC member VG wrote to say, 'the article on healthcare is a bit disappointing in my personal view as all it states is general stuff which is printed and discussed in general media on a daily basis. One would expect that the members get some specific information like... some specific pointers as to what to look out for in a health insurance policy while considering one at that age.'
+So we promised him we would bring him what he wanted, an article on what to look out for in a health insurance policy while considering one... And here it is...
+*****************************
+By PersonalFN and Wealth Builders Club India
+Many of us work hard - at least 8 to 10 hours - in office, seated on a chair  without much physical activity. And by the time we reach home, we are too exhausted to hit the health club or indulge in any other sport involving physical activity.
+That's how life has been; especially in the metros....and has become a routine for many. Commuting long distances to work has become a herculean task, particularly as the infrastructure seems to be coming apart at the seams. You can't even walk down the street without the worry of tripping over uneven footpaths or falling into open manhole covers. But that's how life is - a rat race!
+We are all busy in economic activities to make a living and to provide the best lifestyle for our family, so much so that it is sometimes damaging our physical existence. Eating out at restaurants on weekends or sometimes munching on street food during office breaks has become quite common. But in the bargain you may be ignoring your health.
+While earning money has become a necessity, living a healthy and peaceful life should not be ignored. To live a healthy life, it is vital that you lead a good life too. Take proper nutrition, eat on time and don't forget to hit the gym or engage in a sport you like to keep yourself moving. Sometimes even taking a break from the hustle-bustle of the city to breathe in some fresh air is essential.
+"It is health that is real wealth and not pieces of gold and silver." - Mahatma Gandhi
+As we all know about the popular saying that Health is Wealth. It's very simple, this message. If wealth is lost, something is lost; but when health is lost, everything is lost. Good health is the real wealth - it can keep us happy in body and mind, and away from multiple diseases and health disorders.
+But even if we do live healthily, life can be very uncertain. In her early fifties, Divya's mother had never complained of any serious illness beyond the occasional bout of weakness. No one had any reason to suspect that she would wake up one day with a failing heart, but that's what happened. You could be perfectly fine one minute, and very hurt or sick the next.
+So, we should take our health seriously and take necessary steps to reduce the impact of any emergency situations.
+No one plans to get sick or hurt, but most people need medical care at some point of time. Diabetes, blood pressure, heart problems, stroke, cancer - the list of such lifestyle diseases just seem to get longer and more common these days. It may take just one visit to a hospital to make you realize how helpless you could be if you are diagnosed with an illness and end up hospitalised.
+While medical science has advanced, quality hospitals and specialist doctors do come at a high cost, which in many cases may not be affordable even to the rich, forget about average middle class individuals. A simple surgery or a few days of hospitalisation can easily hand you a bill running into lacs of rupees adding more woes to your worries.
+Medical expenses related to you or your family members can burn a huge hole in your pockets and have an adverse impact on your personal finances.
+As you never know when you or any of your family members may need medical care, having a good health insurance policy is a prudent, affordable way to get medical care when you need it.
+However, selecting the right health insurance plan which best fits your requirements is an important decision, not just for you, but also for your family.
+While selecting a health insurance plan, keep in mind that health insurance is not a one-size-fits-all product. If your friend or colleague has selected a particular health insurance plan, it may not necessarily be the right one for you as well. The need of a 25-year old healthy individual may vastly differ from the need of a 35-year old individual looking to cover himself and his family. Your health insurance plan must address the needs specific to you and your family.
+So here are 8 features you must compare while buying a Health Insurance Plan
+Selecting an ideal health insurance plan for your family from the array of plans available today does not have to be very complicated. While some health insurance plans offer really unique features, here are the 8 important aspects you must look into and compare while buying a health insurance plan...
+Is there a sub-limit on room rent?
+Room rent is one of the major expenses you have to bear if you or a member of your family gets hospitalized. Some insurance companies may cap the maximum amount that they will pay under their health insurance plan. Generally such limit is to the extent of 1% of sum assured and in case of ICU (Intensive Care Unit) the maximum limit is 2% of the sum assured.
+But there are many insurance companies which do not have any maximum limit on room rent; hence you should look for such health insurance plans.
+Will your pre-existing diseases be covered?
+Pre-existing diseases are those which you may already be suffering from before opting to buy a health insurance plan. Insurance companies do not cover these from the first day of your policy. Depending on the seriousness of the disease, your insurance company might impose a waiting period ranging between 2 to 4 years in which they will not be liable for any claim arising on account of your pre-existing disease.
+Therefore you should look for health insurance plans which will cover your existing disease(s) and have the least number of years of waiting period.
+Is there a co-payment clause?
+Co-payment is a clause mentioned in health insurance plans which may ask you as a policyholder to share the hospitalisation cost. Cost sharing is the specified percentage of the admissible claim amount.
+Suppose you have a health insurance plan which has a 20% co-payment clause. Now, in case you are hospitalized and your claim amount is Rs 1 lac, then you as an insured would be liable to bear Rs 20,000 (20% of Rs 100,000), while the rest i.e. Rs 80,000 will be settled by the insurance company.
+Hence, you should look for health insurance plans which do not have any co-payment clause at any stage of your life, or the smallest co-payment. The co-payment clause is usually witnessed in cases where the age of insured is above 60 years.
+Their list of network hospitals
+Network hospitals are those which have a direct tie-up with your health insurance company. In case of a claim you can use ‘cashless facility' at these hospitals. Cashless facility means that when you get treatment you don't have to settle the bill amount with the hospital at all, as the insurance company directly settles your bill on your behalf. Hence in such a case, you do not have to file for reimbursement of the claim since the insurance company has already settled the claim.
+You should ideally look for health insurance plans which have the maximum number of network hospitals, and more importantly, a maximum number of good network hospitals in your city.
+Limit on pre & post hospitalization expenses
+Pre-hospitalization expenses are those expenses which are incurred before you are hospitalized while post-hospitalization expenses are those which are incurred after you are hospitalized. Pre-hospitalization expenses are generally covered for a minimum of 30 days while post-hospitalization expenses are generally covered for up to 60 days. But there are some insurance companies which cover pre and post hospitalization expenses for more number of days as well.
+You should look out for health insurance plans which cover you for maximum number of days of pre and post hospitalization period.
+How much will be the no-claim bonus?
+Health insurance claims should only erupt in the year of hospitalization. In the years where you've been in good health, and you don't make any claims, the insurance companies reward you by providing you with a no-claim bonus. This has an effect of either increasing your sum assured in next renewal of the policy, or decreasing your premium. Such a bonus can range anywhere between 10-50% for a claim-free year.
+Hence you should look for a policy which provides you highest no claim bonus.
+List of exclusions
+Once you buy a health insurance plan, you might rest easy thinking that you have covered yourself and your family against any possibility of hospitalization in future. But if you forget to go through the exclusion section of your policy document, you may be in for unpleasant surprises at the time of claim, because everything might not be covered by them.
+Hence, before finalizing on any health insurance plan go through the list of its exclusions and select the one which has least number of exclusions and are clearly defined.
+How much will be the Premium?
+To avail of the insurance cover, you as a policy holder need to pay a premium. The premium amount will depend on factors like your age and health. Among other factors, the premium amount rises in accordance with your age. The premium you need to pay is a vital aspect you should consider while buying a health insurance plan. But mind you, it shouldn't be paramount in your selection process.
+Buying a health insurance plan with a very low premium without taking into consideration the aforesaid aspects of the policy may back fire during an emergency. It should not happen that at the time of claim you learn that the insurance company is not liable to reimburse you for the illness for which you were hospitalized since it is not covered under the policy.
+You should be well aware of all the features of your policy, or else you may find yourself in a soup with a huge hospital bill to be paid. If you consider and compare the above features while selecting a health insurance plan, you can rest assured that you have made a good choice for your future.
+Here is a final check list of points to be considered while buying health insurance:
+Check for the ailments/diseases that are excluded
+Check the ailments that will not be covered in the initial years of the policy or have waiting period
+Check whether expenses arising for treatment due to war, riots or a terrorist attack are covered
+Check if cashless hospitalisation is included and also the number of network hospitals where this facility can be availed
+Check for the pre & post hospitalisation period
+Check sub-limits on room rent and co-payment clause
+Enquire about the compensation provided in case of partial or total disability
+In case the medical insurance policy is for dependants like parents or a new born baby, check the maximum as well as minimum entry age
+Ensure a complete understanding of the benefits accrued, in the event of no claims being raised.
+This article has been authored by PersonalFN, a Mumbai based Financial Planning and Mutual Fund research firm known for offering unbiased and honest opinion on investing.
+====== Best Retirement Cities in India: Spotlight on Coimbatore Fabulous Weather, Sweet Water and Gentle People ======
+Editor's Note: A reader wrote to us recently telling us he would love to see a list of the top places to retire to in India. We thought that was a very good idea, so as an extension of our Retire Next Year series we are creating a sub-series, Best Retirement Cities in India.
+In each installment of this series we will focus on a city we have identified as one of the best places to retire in India based on several parameters, which include weather, affordability, availability of healthcare, possibility of extra income opportunities, and quality of life, among others.
+If you have ever considered moving to a city with sweeter waters, calmer airs and lighter on the wallet, this series will help you envision that perfect retirement.
+*****************************
+You look out of your beautiful two bedroom villa at your lovingly-tended vegetable patch in the backyard. Beyond your garden, green hills roll away as far as your eye can see...
+You never thought that, after living crammed in a matchbox in Mumbai, this is where life would bring you... retired, relaxed, surrounded by nature...
+You shake yourself out of your reverie as smells of a simple south Indian meal fill your senses... it's time to go meet your friends for dinner... as you do every day.
+Ever since we started writing about retirement, we have been spending a lot of time talking to people about their retirement plans, and their retirement realities.
+One city that came sharply into focus in our research was Coimbatore, the city we describe in our scenario above. As you read on you will see many undeniable reasons why Coimbatore is one of our favourite contenders for the ‘top retirement city in India' title.
+The second largest city in Tamil Nadu, located at the base of the Nilgiris, Coimbatore is known for its pleasant climate and relaxed atmosphere. It is also known as the Manchester of South India due to its growing textile and engineering industry.
+It is a popular retirement destination because of its scenic location as well as slower pace of life compared to the metropolitan city - Chennai. The air quality is better, the population smaller, and weather better. Temperatures ranging between 32 °C and 18 °C during the winter months to 36 °C and 23 °C in the summer months, make it pleasant year-round except for the hottest days of summer.
+The rolling hills of Coimbatore
+The rolling hills of Coimbatore
+Source: Prince Roy / CreativeCommons
+Another major draw for the city is its affordability. Renting a property, depending on how fancy, and the neighbourhood, is anywhere from Rs 7,000 for a one BHK to Rs 25,000 for a four BHK. Buying a property could be anywhere between Rs 30-40 lacs for a two BHK to Rs 80-90 lacs for a three BHK.
+Coimbatore has become a hotbed for medical facilities.  In addition to a reputed government hospital which offers free healthcare, it has several private institutions, and has become known for its medical tourism. So much so, that they have attracted people looking for healthcare from neighbouring districts and states, including Kerala.
+The city is well connected by rail, air and road. There is a proposal for a monorail within the city, the airport has flights to every big city in the country as well as some international flights to Singapore and Sharjah, and it is connected by rail to all major Indian cities.The nearest metropolitan cities are Bangalore and Chennai.
+There are drawbacks to living here however, a depleting water source and lack of underground waste and sewage infrastructure, for example, but hopefully the entrepreneurial energy of the city will soon bring solutions to these issues as well.
+The great weather, relaxed environment, affordability and availability of very good healthcare have all contributed to Coimbatore's popularity with retirement communities and assisted living options.
+To get the full story, we caught up with Mr. and Mrs. Subramanian (72 and 62 years old respectively), a wonderful couple who made the plunge a few years ago and after forty years of living in Mumbai, moved to a whole new life in Coimbatore. Read on for our chat with the Subramanians...
+Why did you pick Coimbatore as a city to retire to?
+She: I was born in Coimbatore and had spent my first 10 years there. I knew the city well and also had enormous fondness for this wonderful city with its fabulous weather, sweet water and gentle people. It has all the facilities of a big city and yet retains its small town charm and innocence.
+He: In addition, Coimbatore is just an hour's drive from Kerala which makes it perfect for us as I'm from Kerala and we have plenty of family there, apart from the temples, which we visit every few months.
+Why did you decide to move?
+He: We were tiring of Mumbai, its foul weather, traffic and expenses too. I would always feel fresher and healthier in Coimbatore or Kerala. We were in Bombay only because all our 3 children were there. Once they left the city to chase their careers, we really saw no reason to continue in Mumbai. We had planned for this shift to Coimbatore and had already purchased a villa in Nana Nani homes retirement community and so the move was pretty easy.
+What are the challenges you faced moving here?
+She: The only real challenge is to keep myself busy. As you would have guessed, everyone here is old or very old and are not as active as I would have liked. While it's wonderful being in a community with like-minded people or people from the same background as you, I would have preferred a  more active lifestyle, while I still have the will and the energy.
+I still try and keep myself busy, I translate TV soaps/ programmes from Hindi and English to Tamil. I can still do that thanks to the internet. But, I miss looking after my grandkids. They really kept me on my toes.
+He: I couldn't wait to move here. No challenges except convincing her to move, and convincing her that the kids have grown up and can manage by themselves.
+How has the experience been so far?
+He: I'm loving it. I get to go to a proper south Indian temple every morning, play cards with my mates for 2 hours every day, cycle to the local market not scared some stupid bus driver will knock me down. I enjoy the fact that it costs me less than half of what this cost me in Bombay.
+If you have kids, where are they and do you manage to see them often?
+Our kids are in Bangalore, Chennai and Dubai. We see them every few months and during vacations, the grandkids come and stay with us for a few weeks at a stretch
+Are the climate and location agreeable?
+The climate is fabulous except for 2 months of summer when it gets very hot and the electricity is irregular. We have back-up power, but still it's very expensive to run air conditioner on diesel.
+Also, the community is 18-20 kilometers away from Coimbatore city and costs Rs 350 for a one-way cab ride, which is very expensive. But then again, housing would not have been so cheap if it were closer to the city. My children keep telling me that the cab ride is not expensive for the distance, I just can't bring myself to spend that nearly 1000 rupees just to go to the city. She doesn't allow me to take the bus.
+But other facilities like doctors and hospitals are close by and one doesn't have to go off to the city each time, unless one wants to see a specialist.
+Have you found it convenient to be here?
+Yes. Increasingly, the facilities around our community are improving. We have better retail stores coming up just outside our community. Earlier we had just one courier company servicing us, but now even that had improved. Ola cabs have started coming here too. So yes, it's a lot more convenient than what it was even 3 years ago.
+What is the primary language/s spoken there and have you had trouble adjusting?
+Tamil. We are comfortable with the language. Hindi and English are also spoken in the city.
+How are the medical facilities in Coimbatore?
+Coimbatore is well known for its educational and healthcare facilities, which are first rate. Now, we also have basic primary healthcare facilities near our community and don't have to visit the city unless we have to see specialists. We have a GP within our complex and also a couple of physiotherapists visiting us each day. There are also people who will come to our homes to collect blood samples etc.
+Is it an affordable city?
+It's a very affordable city. Though, real estate prices, especially of retirement homes, is increasing rapidly.
+How did you choose this retirement community?
+We have had relatives living in several retirement communities in Coimbatore. We were therefore fortunate that we could visit several before we made up our minds. We bought this one, as soon as it was launched and took 18/24 months for them to complete the project. We had seen their work earlier and felt confident booking in this one. It was a great price, prices are now double of when we had bought 5 years ago.
+Do you see opportunities to work/ make extra income since moving here?
+That is not easy unless you can do something remotely on the internet. The only kind of work that one can do here is to teach kids at the local municipal school and balwadi, which is what some of us here do.
+What is the biggest factor in why you decided to move to Coimbatore?
+The big reasons: weather, familiarity with the place, several friends and relatives were already here, convenience and how inexpensive everything is.
+Do you find yourself happier now that you left big city life behind?
+He: Very much.
+She: I wish I could spend some more time with my grandkids in Mumbai. For that, I prefer Mumbai to this, maybe.
+Would you recommend this city to others who are looking to retire?
+He: Absolutely. It's a great concept. One doesn't have to worry about cooking - there is a central kitchen which serves amazing food and every meal is an opportunity to catch up with friends. One doesn't have to worry about maids and cleaning and maintenance. This is a completely managed facility and these things are taken care of. We only pay Rs 3000 per month per person for food and about 3000 per month for house cleaning and maintenance.
+The weather is wonderful. Basic, healthcare facilities are next door. There is a club house where we watch movies and play cards. We have a sweet small villa with a green patch where we grow vegetables, which would have been unthinkable in Mumbai. And all of this at a price that is cheaper than just the rent one would pay in a big city like Mumbai or Delhi.
+What is your favourite thing about being retired?
+I have time for my temples, for my books, meet friends, watch TV and best of all no commute and work stress.
+Note: Well, you heard the Subramanians, they've settled into a wonderful new life in a warm new city. What do you think about Coimbatore as a city to live your retired life in? Where would you like to retire and why? Give us your ideas for our list of best Indian cities for retirement by posting your ideas here.

DokuWiki

Site Tools

Differences

Page Tools