Golden Rules for Retirement

Planning
Golden Rules for Retirement Planning:
• Calculate the retirement corpus
• Start investing monthly:
• Choose your saving and investment avenues wisely:
• Review your finances regularly:
• Start early:
• Stick to your investment plan:
Golden Rules for Retirement Planning:
• Calculate the retirement corpus
It is essential to calculate the corpus you would need after
retirement so that you can invest and plan your budget accordingly.
For example, if you need 24,000 rupees per month for your
expenditure today, you would need around 1.44 lakhs per month (if
you retire 30 years from now and consider a constant 6% rate of
inflation) Hence, it is wise to calculate sufficient
amount of money required for the future.
Golden Rules for Retirement Planning:
• Start investing monthly:
Experts believe that you should invest 10% of your monthly
income towards retirement. Regularly investing a certain percentage of
your income allows the growth of your funds by the power of
compounding.
For instance, a monthly investment of Rs 10000 at 9% would
grow to more than Rs 19.5 lacs in 10 years, Rs 1.80 Cr in 30 years
and 4.7 Cr in 40 years. So, you can benefit from the power of
compounding over the long term; i.e., your money earns money
on the interest made every year, thus compounding your money.
Golden Rules for Retirement Planning:
• Choose your saving and investment avenues wisely:
Multiple savings and investment options are available in the
market. Choose only the options you understand thoroughly and
efficiently. Be wise and match your risk-appetite with the
investment avenue. There are multiple debt and equity products
to help you earn on your investment and create long-term wealth.
Also, there are long term savings instruments like endowment and
money back plans which provide the dual benefit of life insurance as
well as savings.
Golden Rules for Retirement Planning:
• Review your finances regularly:
Analyze your portfolio on a regular basis. Reviewing your
portfolio is imperative. There may be times that your investments
may take an unexpected turn for the worst. Bonds and stocks can take
a hit given the market conditions. Hence, it is indispensable to
keep reviewing your investments on a regular basis. Suppose you
wish to maintain your investment in equities, debt and cash are in
the ratio of 3:5:2 make sure you stick to it. Every time you review your
portfolio, keep track of this proportion and re-balance allocations
accordingly.
Golden Rules for Retirement Planning:
• Start early:
It is crucial that retirement planning is initiated as early as
possible because it offers the benefit of the power of compounding.
It also gives the investors a reasonable amount of time to alter
investments if necessary and thus choose the ones that suit their
needs.
Golden Rules for Retirement Planning:
• Stick to your investment plan:
• More often than not we tend to deviate from our investment plan to fulfill
other goals. Ensure that doesn’t happen when you start financial planning for
retirement. Your new dream car or a bigger house can wait but retirement
planning cannot. Invest as much as you can afford to and invest in flexible
plans, which ensure that you can alter your investment any time during times
of dire need. Other than that, the financial goals for retirement should never
be tampered with as they become a habit and in turn disturb the investment.
Thank You