How to ensure your Retirement plan is best and on track
Ever since inflation and standard of living drastically changing , one need to have significant amount of money after retirement to continue rest of the life without any financial obstacles. Following are the best ways to ensure you have adequate corpus on your date of retirment.
- Start Early
Delay of one day , month , year will change your corpus outlay irrespective of amount you are going to save. Starting at early stage always gives multiplying returns of corpus compare to those who start late.
Whether you are 20, 30 or 40 start now and plan your retirement. Neglecting retirement will have greater risk of financial consequences as income earning capacity may go down or stop completely for some. Many people hesitate to think of retirment will regret later. it is a fact that one day you must retire and planning inadvance will have a greater chance to lead a comfortable life.
- Top – up Savings
Regularly you need to review your savings and expenditure trends like how a company review profit and loss account as well as balance sheet having assets and liabilities at year end. Most of you hesitate to review your financial strength as some affraid to know that they are financially weak at that stage anmd some are really negligent. You need to increase your savings periodically when your income raises from any source. Even if you add1000 rupees additionally will make a big difference in retirement corpus.
- Diversify investments
If you have started you investments in early 30’s you need to diversify as well as incease the investment into different categories as on when you have any pay hike or raise in income source. Many people constantly invest the same amount like loan EMI and eventually they forget but inorder to check whether you investments are meeting your retirement needs, you must reveiw and got for top up them and diversify into different market like gold, mutual funds, debt bonds, ULIPS and alternate investment funds including real eastate
- Take Risk
Whether you have market knowledge or not, you need to take risk in investing in stock market to diversify your risk where returns will be much higher. Incase you dont have basic knowledge on stock market then you may choose Mutual funds as best option and they are much better when compared to directly investing into stocks. Too much “Safe play” will not yield anything however ensure you have a thumb rule for portfolio of investment where you can take risk without loosing totally.
- Ensure Insurance
If you are having dependents, then you must take insurance and now a days many unit linked polices are offering combo plans which have a insurance facility also during the tenure. However it will differ according to your family size and standard of living. If you start early the premium will be less compare to “late comers” . Choose a policy which meet your family financial needs in your obsence.
Bonus Tip: You need to get rid of certain stale investments, unnecessary policies, which are no way useful on maturity . Many young stars commit them at their early stage of career and later on neither they yield anything nor gives hope for betterment in future. Ultimately they become financially burden for them. Do not hesitate to take off them from your basket and start better investment freshely.
Therefore you need to reveiew your finanical health evey year to know where you stand and way to go. Always keep in mind of Inflation(Rise in prices of all) while calcualting your future needs