Retirement planning tips

Retirement planning tips


Retirement planning tips


Friends its everyone's dream to retire wealthy, but sadly most of the people cannot do it as they don't follow proper saving and investing discipline when they are earning.

Many people out there don't give a damn to retirement planning, they are of a thought that retirement is something not to worry about, we will take care of that phase when it comes.

But friends let me tell you, the rate at which day to day prices are inflating, can you maintain same standard of living when you have no money to fall upon.

Hence retirement planning becomes mandatory, so that you can live a happy and peaceful life and maintain good standard of living even when you are not earning.

So friends here in this post I will introduce you some retirement planning tips which will help you become financially independent and enjoy blissful retirement phase of your life.

1. Start saving early.


Friends ideally you should start your retirement planning with you first job itself. Sounds crazy? Let me explain, the sooner you start building up your retirement corpus the less you will have to contribute towards it.

Say for eg mr x starts investing 1000rs monthly into a equity mutual fund from the age of 25, and he decides to retire at 60 then assuming if his portfolio grew at 15% per year, he would have collected 1,14,33,182 hrs approx.



On the other hand mr y starts investing 5000 rs monthly into same equity fund from the age of 45 and he decides to retire at 60 then assuming his portfolio grows by 20% per year, he would have accumulated only 47,90,336 rs only.



This you see friends the sooner you start, the less investment would be required for building retirement fund.

2. Diversify.


The next important tip is to diversify your asset classes.

Never put all your eggs in one basket, you should be having a full platter of investments ready and generating income for you in your retirement phase.

There should be a good balance of equity, debt, reality, gold, bonds etc in your retirement portfolio.

3. Invest in equities.


Friends when you are earning, it's very important to invest in equities, you can directly buy stocks or can invest in mutual funds.

It's only equities which have the maximum power of compounding, and will help you to develop good retirement fund.

According to me you should invest a major % of your salary into equities in your earning stage and as you are nearing your retirement you should migrate into debt instruments.

4. Take help of a financial advisor.


Friends with the costs shooting up rapidly over the last couple of decades, one cant take his/ her retirement for granted.

One should plan his retirement very effectively and cautiously.

But sadly not everyone is competent and wise to take investment decisions by himself.

In such situations, one should take help of good investment advisor, it won't cost you much.

Its better to take professional advise rather than regretting for the haphazard and foolish decisions you made.

5. Be debt free.


Friends you don't want any liability lingering over you in your retirement phase, do you?

So its very important, to pay off all your debts, before you hit your retirement phase.

Because having slogged for such long years, you deserve a good and peaceful retirement life.

So friends these were some retirement planning tips, hope it is helpful for you.
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