Retirement Solution
Building a corpus for retirement is most likely your last goal after others such as a child's education or buying a home. This means you have more time to plan and invest for retirement. It is never too early to prepare for retirement, especially if you want to maintain the same standard of living that you would have got accustomed to by then.
On a lighter note, retirement can be a great joy if you can figure out how to spend time without spending money. But that’s not going to happen as after you take leave from regular work you have double the time to spend with just half of the money. But that doesn’t mean you should give up your financial independence and hence, it is necessary to plan your post-retirement life.
Nobody takes retirement seriously. But the fact is that even a small sum of money saved regularly and invested regularly makes a big amount which will come in very handy after retirement. One should not believe that after retirement, one can place all savings into income-generating investment and spend the rest of life in happiness. If you don't plan early, you could end up eroding your principal savings in order to supplement your monthly income.
Retirement should be kept as a top priority because if one does not keep it at the top one might end up depending on one's children, which probably no one would relish
Develop a plan for saving based on your requirements at the time of retirement. The goals you keep for saving depend on your lifestyle but you will need at least about 66% of your pre-retirement income to maintain your standard of living when you stop working.
If your employer offers a pension plan, understand carefully your benefit level, financial stability of plan and the vesting period. Use retirement plans even if you already have enough money. With retirement plans, your money grows in a tax-efficient manner and compounding interest over time makes it one of the best investment options
Evaluate your risk profile and then balance your investment strategy to invest in various avenues to get the most out of your retirement money keeping your risk profile unhampered. Diversify your investments & allocate your assets carefully. Depending on your work profile divide your savings into equity, Bonds, Mutual Funds, and other investment avenues. Don't invest too heavily in one sector or one company, since the risk associated with putting all your eggs in one basket is indeed very high.
Saving and investing regularly makes a big difference at the time of retirement. Investing at regular intervals builds your retirement fund over time and helps you to minimise risk and give you a tension-free retirement -a time to pursue your hobbies, fulfil your dreams and passions.
