RETIREMENT ADVICE

INFLATION:
Inflation is crucial to determine one’s purchasing power. There are
two indices that are used to measure inflation in India — the
consumer price index (CPI) and the wholesale price index (WPI).
PERSONAL INFLATION RATE AND RETIREMENT
ADVICES:
Now a days, along with your income details, current savings and
investments details that you have is necessary for a retirement plan. In
addition to this, your monthly expenses should also be taken into
consideration. To start planning for a retirement you need to calculate
Spent on each category (e.g., your child's school fee, Home EMI).
These days, many banking and money management apps give you a
breakup of amounts spent on various categories such as food, fashion,
healthcare, etc. List the amounts spent in each category in the excel
sheet. Now compare the current year's expenses to last year's, and you
will get your personal inflation rate. Then let’s assume your personal
inflation rate is 9 % or 8% and you must invest your savings in capital
market like in mutual funds, Bonds because in your portfolio. If your
portfolio return rate is higher than the personal inflation rate, your real
returns are positive. Else your money is losing purchasing power. In
my point of view, I invest in ICICI Pru Value discovery fund, Indian
opportunities fund and Index fund because it holds more than 90% of
Equity and 0-10% of debt. But this portfolio only suits for 20 -30
aged peoples because they have over a period of time for retirement.
When come to moderate age peoples like 40 – 50 age peoples they
can invest in 50% equity and 50 % 0f debt like hybrid funds. Ex:
ICICI Balance advantage fund. After post retirement, you can invest
in Government of India bonds (GSecs), Senior citizen savings scheme
(SCSS), Pradhan Mantri Vaya Vandana Yojana (PMVVY), RBI
floating rate savings bond, Fixed deposits of AAA-rated NBFCs.