Retirement planning is a trap set by banks to keep your money in their banking system.
Ohh well, it took me so many years to realize this. I have also written some articles in the past to promote retirement planning, those articles were from my average understanding of personal finance.
I am sorry that I also spoke the language of bankers and so-called wealth managers.
But the truth is..
Retirement at 60 years of age does not mean a happy life. Selling you a retirement plan is an easy way for the banking industry to keep their cash flow.
Banks and financial houses are running their business on your money.
You worked hard so that banks can run their business on your money.
Banks are approving the loans to people like Vijay Mallya and later writing off debts. Public sector banks wrote-off Rs 2,51,00,000 crore of loans in past 11 years.
Can you believe that? Whose money is it? It’s public money.
Banks are not running factories. They borrow your money from 4% to 8% interest and lend that money in the range of 9% to 18% interest.
In some special cases, they lend money at as low as 0% interest rate however they try to fix interest at 5% for next 18 months. Read how debt restructuring works. Banks have their process to recover NPA but not sure how much recovery they get at the end.
Center government infused 22,915,00,00,000 rupees in 13 PSU banks in financial year 2016-2017. Whose money was it? Of course, it was your money.
I would not be surprised if the real truth behind demonetization decision was to capitalize banks with public cash money. I am not sure. You can make your own opinion. I can just share the stats.
As per RBI, Rs 15.28 trillion has been deposited in cash into banks by June 2017.
What a relief to cash-strapped banks in India.
The point is not demonetization or handling NPAs.
The point is that our money is NOT safe even in the Provident Funds or Fixed Deposits.
The money finds it’s way to slip into holes (often with the help of few assholes, the bad fund managers).
It’s not a panic situation either. You will get your money sooner or later unless our government becomes bankrupt like Russia after a decade.
But who knows? If countries like Germany and Russia can become bankrupt then any country can see dark days too.
Select Your Favorite Section
- Countries can go bankrupt for the following reasons
- Let’s talk about financial planning and so-called “Retirement”
- I want my retirement now..
- #1. Freedom from a boss
- #2. Being Myself
- #3. Focusing on the success of others
- #4. Spending time with my Son and Family
- #5. Doing a meaningful work
Countries can go bankrupt for the following reasons
- A trigger of a war (or just fear) (It may happen anytime in our country)
- The collapse of influencer economy (Europe, US, China – that may also happen anytime)
- Events set by governments (Can you really believe in the actions of our government?)
- A chain of major scams by our own politicians and bureaucrats (There might of 100s of Vijay Mallyas in the system)
- Internal Conflicts or Civil Wars (like the things happening in the middle east)
- Running out of resources or steep devaluation of resources (like what happened with Oil Dependent countries like Venezuela)
Do you have control over those events? No.
I hope and sincerely wish that none of those events happen in my country but it’s foolishness to say that it’s impossible.
I am convinced that my money is not safe anywhere. Are you with me?
By the way, what is the use of money at the age of 60 when I will not be able to enjoy my life.
Let’s talk about financial planning and so-called “Retirement”
When I started financial planning after getting my first job in 2006, my financial goals were like
- Funds for higher education (MBA after 2 years)
- Funds for Marriage (after 5 years)
- Car after 5 years
- Home after 7 years
When I got married, then my financial goals became
- Paying off my current debts in 2 years
- Home after 3 years
- Child’s education after 20 years
- Children marriage after 25 years
- Retirement after 30 years
Screw the retirement planning…
When would we enjoy our life?
I realized that retirement planning concept is not going to improve my life, but “Retirement” concept is created to improve the life of a bank and financial institutions.
In my view, the actual meaning of retirement is..
.. stop doing the compulsive work and start living the life that you always wanted to enjoy.
Poor me. I never realized that the retired people are not the happy people either.
They are just waiting for their death and living a not-so-happy life. Unfortunately, it’s true for most retired people in India (exceptions are always there).
I don’t want to get retired like them. I don’t need a retirement fund to take care of my almost-dead body.
I want my retirement now..
I want to live my life now when I am young and energetic.
I love the concept of retiring every year that I learned from Tim Ferris (Author of the book 4-Hour Work Week).
It says, that we should go for the mini-retirements every year and then come back to resume our work.
We can also take our work along with us while on a vacation.
We did an amazing one-month long road trip under budget from Chandigarh to Karnataka, covering Rajashtan, Gujarat, Maharashtra, Goa, MP and UP. The cost of the entire trip was less than 100,000 rupees (including fuel, stay, food and shopping).
A picture from one of my mini-retirements in Bali.
We managed our month long vacations under a budget that most of the other people spend on a vacation of one week.
When we are on a workation – we work in the daytime and spend our evenings in appreciating the beauty of the places (Beaches, Markets, and Culture). We live at a single location and plan short weekend trips in the country.
We are traveling the world and enjoying our mini-retirements.
Now you can imagine (& compare) what the bankers mean by retirement.
Do you want to get retirement at the cost of killing your present dreams?
There are some other little things that give me happiness in my life.
#1. Freedom from a boss
I am not running a big company but a self-sustainable small online business. I don’t have to report to anyone. I became more disciplined because there is no one else to give me instructions.
It’s an awesome life of freedom with responsibility.
#2. Being Myself
One of the biggest dissatisfaction of my corporate job was the involvement into office politics. No matter how hard I tried to stay away from that shit but the situations forced me to manipulate the facts.
(Confession – I used to give overestimates of my work so that I can finish the work in less time and take out some time for myself).
The more manipulative people were growing fast on the corporate ladder.
I am glad that I left that culture and now don’t have any fears. I can say NO to my clients and vendors if I don’t see a mutual fit.
#3. Focusing on the success of others
We have been taught in the school that the success will come by beating others in the competition.
But here, the opposite is true.
When I am free and true to myself – I can become the part of the success of others without compromising my own success. The happiness is when you get ‘Thank You’ emails from the people whom you don’t even know personally.
#4. Spending time with my Son and Family
Honestly, I am still not getting the sufficient time to spend with my family. However, I made a rule that I won’t work after 6:00PM unless it’s absolutely necessary. Due to some short-term work turbulence, I had to break the rule but the goal is to spend most of the time with family & friends.
We do not work on the weekends at all. (Including my team members)
I am waiting for the day when I will limit my workday to 2 hours and spend rest of my time on the things that really matter to me. (A complete retirement)
#5. Doing a meaningful work
At the end, I feel that I am doing a meaningful work for myself and others.
I earn 80% of my income from the passive sources (my blog, other affiliate assets, VIP Newsletter, and Courses). In one sense, I am financially independent.
If I stop working today, I will still get a regular income for a long period of time – but may not be for lifetime.
That’s why I am not claiming myself to be 100% Financial Free.
But I am becoming a part of Financial Independence of many people who are learning from my blog and VIP Newsletters.
These are paid newsletters that I send to members every Friday.
I don’t earn much from the paid newsletters but these would create a huge impact in the long run. That is the source of my satisfaction & happiness from my work life.
Your source of happiness and enjoyment could be different from mine.
But don’t become a victim of financial system that compels you to compromise your dreams. If you don’t learn to be happy in the present then even 5 crores of retirement money will not make you happy.
Your children will remember the vacations and the time that you spend with them – not your retirement strategy.
Talk to a few senior citizens who retired in a way that ‘Bankers’ wanted them to retire. Ask them what they enjoyed their life. I hope you can hear a few interesting stories of their most happiest moments when they were young but not retired.
Live those moments yourself today so that you can tell those stories to your grandchildren.