Many of us keep wondering how to plan for retirement. This necessitates the creation of a solid plan that will safeguard the financial security of your family, while ensuring mental peace simultaneously. Here are some tips that will help you in this regard.
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Thursday 09 Jan. 2025
How to Plan for Retirement- A To-Do List
Here is a roadmap on how to plan for retirement at your own end.
- Goal-Setting- What are your future goals once you retire? List them down and account for the money that you will need to achieve them.
- What You Require- How much money will you need to comfortably retire and maintain your living standards, while ticking off all your major goals as well? This amount should be calculated strategically, depending on your current circumstances and future objectives.
- Strategy Creation- The next step is the creation of effective strategies for savings and investments. You should focus on diversifying your portfolio with a mix of high and low-risk investments in order to maximize your returns, balance and spread out the risks, and stay on track towards achieving your financial goals at retirement.
- Periodic Reviews- You should not have a static retirement plan in place. Keep reviewing your investment portfolio periodically and consult experts if needed, on how to keep tweaking your investments for maximum performance.
These are some of the steps that will help you master retirement planning. Now, let us take a look at some of the retirement choices that are worth considering as you plan your future.
How to Plan for Retirement- Top Investment Choices
Here are a few retirement planning options that you can check out for your portfolio:
- ULIPs- Unit-linked insurance plans are ideal retirement planning tools. They will help you get substantial life coverage throughout the policy tenure, while also helping you choose the right mix of equity and debt investments for long-term returns. While they are risky, you should be patient enough to stay invested and ride out temporary market volatility, while switching funds flexibly to safeguard your returns.
- Retirement Plans- There are several retirement plans offered by multiple insurance companies. These also offer handsome life coverage along with giving you several investment choices to boost your portfolio once you retire. You can pick from immediate and deferred annuity plans, while also converting these policies into pension plans after you retire (once you have amassed your corpus or received a lump sum at retirement).
- National Pension System- The NPS is for those between 18-70 years and offers handsome tax benefits and balanced risks. You can earn decent returns over time, choosing from options like corporate and Government bonds and alternative investment funds.
You can also balance your portfolio with other instruments like direct equity investments (through stocks), mutual funds, fixed and recurring deposits, and real estate (for earning future rental income).Keep these strategies in mind to build up a solid retirement corpus and secure your financial future. You should also start as early as you can in order to benefit from the power of compounding.
