After living a life of fun, work, happiness and hardships;all of us would want a peaceful retirement. To plan one, one needs to cautiously analyse their current requirement and necessities afterwards.Retirement planning is not tedious but requires a degree of discipline,efficiency and common sense. Also, one needs to sagaciously understand the economic changes that may take place over the years and take steps accordingly to combat or acclimatise to those.
Read 5 Key ways to plan your retirement;
Invasion of inflation
In the present scenario, inflation is an inevitable or rather an invincible part of our existence and will continue to spike in the future. As much as it devours a large chunk of our savings today, it is expected to consume the savings of our retirement also. It goes without saying that our retirement plans too, need to be bolstered. Systematic Investment Plan (SIP) is one of the preferred modes of investing to balance retirement. If you have been investing for quite some time or have just begun investing, then in both contexts; you may have to upgrade your investment corpus according to the changing times to let it grow. This will ensure that you have enough savings from your investments to help you beat inflation and live a peaceful retirement.
Penny saved is penny earned
Most of us have heard a very popular saying; ‘Penny saved is penny earned’, which is arguably a vital advice or lesson for retirement financial planning. The most awaited date for a salaried employee is the 1st and this is because this day seems to be like the light at the end of a dark tunnel, and the dark tunnel is quite similar to the dreaded ‘end of the month’. Well, the 1st of the money can also be perceived as the day to multiply wealth by contributing a sum (usually 12%) in your Employment Provident Fund (EPF). It can appear to be a small amount and can be overlooked as not required; but a contribution in the EPF can help build your investment corpus and be a very useful aid for the future.
Prefer quality over quantity
Investing in Mutual Funds or other investment vehicles can be very useful during retirement. This is because the returns generated by the performance of these schemes or investment vehicles could benefit investors during retirement. However, it is equally important to invest in quality stocks that have the potential to enhance the composition of the portfolio. It is advisable that one must have a few but good stocks rather than a bunch of underperforming ones. Keeping retirement in mind, this is absolutely essential as the potential or expected returns at the time of investment can end up in multiples during retirement. Hence, it is suggestible to buy right and sit tight to get rid of sleepless nights.
Ready for requirements of your retirement?
Well, as time passes on, as much as our expenditure increases; so do weights on our shoulders. It is paramount because we have responsibilities and liabilities to look at. Usually, a salaried employee is also the earning member of the family, and remains to be one till quite some time till the next generation takes over the reins. But one cannot solely rely on these resources and has to make a concrete plan for the present and the future. A primary concern for most earning or non-earning parents is the education for their children, which like all other commodities too, is expected to shoot up. Also, all debts of big or small amounts should be steered clear before you bite the dust to ensure a hassle-free retirement. Besides this, many need to have their insurances in place so they can make use of it in future in times of need or emergency.
Watch your habits and stick to the plan
Discipline is an important ingredient to savour the sweet course of retirement. Yes, it is absolutely important to monitor ones habits and focusing on the decided, because by not paying attention to these, the retirement plan is bound to go for a toss! An example of this is that of an investor, who buys and sells too often or doesn’t invest accordingly. These are the evils of our retirement plans and need to be taken care of.
