Provide some guides on how to prepare for retirement based on personal experience.Preparation for retirement has to start early. A small saving done earlier will accumulate over the years. Thanks for the compounding interest.

1. BUILD YOUR NESTS EARLY
Prepare for your retirement early
Joha Rahman
http://retirerich-joha.info/2010/09/build-your-nest-egg-early/

2. THE SECRET TO RETIRING RICH IS TO START
EARLY
 Get your retirement plan and start saving early.
 Delay and procrastination will cost thousand of
dollars in opportunity. It will make the different
between comfortable retirement and struggling
old age.
 Many young persons age 20-40 say they
cannot effort it. But savings do not have to be
big. A saving equivalent to a cup of coffee daily
for 30 years will be a big amount.

3. THIS IS HOW TO START TO BUILD UP THE
WEALTH
 Goal setting
 Set The Budget
 Discuss it with your Family
 Start Implementing
 Review and Adjust.

4. GOAL SETTING
 When you are convinced that you need a
retirement plan, the next step is to come up with
the goals. The goals have to consider your
aspiration of you retirements life and connected to
your career plan.
 For example, you may want to make social
contribution after your retirement or you may like
to get involved in religious activities. Whatever your
goals, you will need cash to support it. As the
life expectancy is getting longer, do adjust
accordingly.

5. SET THE BUDGET – HOW MUCH IS THE
RETIREMENT FUND.
 Estimate the monthly amount needed for your
retirement.
 Your can extrapolate the present requirement
and adjust it with annual inflation.
 Add the additional cost of medical insurance.
 The amount is an estimation and readjusted
annually.

6. ESTIMATION THE REQUIREMENTS FOR YOUR
RETIREMENT.
 For example if you work out that your retirement is $2000 per months, then
working out the amount of saving required considering 4% interest.
 Without consuming the principal, and living on interest alone you will
require:
 Amount = $2000×12/ 6x 100
 = 400,000
 So the the start of the retirement you should have $400,000
 (ii) With $400 000 as the target value to be achieved, then the saving plan
can be formulated.
 Using the annuity calculation from http://www.1728.com/annuity.htm
 The annual saving is $4773.17
 You may not be able to fork out $400 per month when you start working,
you can always start it small and increase the amount as your salary
increase.

7. GET THE INPUTS FROM YOUR FAMILY
 Discuss the plan with your spouse. If your spouse
is working, the chance is you are going to retire
about the same time. I am suggesting that you
have two retirement plan, this is cleaner as you do
not know what the future is going to be.
 If one of you past away, at least the others saving
is still freely available. In the event of the
unexpected, such as separation, it will make it
cleaner.

8. GET STARTED
 The important point is to get started.
 Do not bog down with details and trying to get a
perfect plan.
 The amount saving can be adjusted depending
on your requirementd.

9. THE RESOURCE
Blog site:
http://retirerich-joha.info/
The author had retired form 35 years career in an airline and
now focused on blogging.
eMail : mktg@joharahman.com