Don't Worry about Your After Retirement Income - With These Fruitful Retirement Investment Plans
Retirement can be satisfying and a soothing phase of life, though there are a lot of challenges one has to tackle at this time. Facing them can arouse concern, even if you are saving and planning for it from several years. But one day, the time will come where you will have to encounter the retirement stage.
With a strategic retirement investment, planning your life can be truly smooth and stress free.
Retirement Planning is Important, here I will tell you why!
If you are still not motivated to start saving money for the time of your retirement, I have presented some notions and beliefs that may be helpful to motivate you.
You Have to Save for Yourself
Have you ever thought- If you quit your job for some time then what will the scenario be? Can you think how miserable your life will be? What expenses you would have to cut down? What will be the spending pattern of yours? How would you diminish your monthly cash flow? What kind of financial help you will require from your family and friends?
Well, ultimately you will become a pauper.
Believe me, the after retirement life is quite longer. And don’t forget, how you spend today is crucial for how much you save for your forth coming retired life.
Retirement Cash Flow Tactics
Post-retirement, you will require money for your everyday expenditures and to face emergencies. You will be able to deal with all your finances hassle-free, if you generate good income.
If you are already having good financial spending goals, you will enjoy a well-funded and joyful retirement with a good lifestyle.
Read Related Blog: 5 Golden Rules of Retirement Planning Using Mutual Funds
Getting old is certain
Becoming old is not an option; rather it is certain that one has to be in life. We don’t have any option but we are able to tailor our savings in such a way that it will provide us good returns at the time our retirement.
Pay yourself first
You wake and start with your day not with your choice. Go to office and spend 8-10 hours there for shifts, travel long distance in commuting to work and follow the boring routine for all working days in a week.
Most folks pay to others before themselves. They pay to Creditors, bill collectors, the government through various taxes and to so many others. Such system fusses and is planned for your financial failure.
It will be extremely hard for you to become rich if you keep on paying to everyone else first. You must plan something regarding it and redirect your earnings in such a way that you get paid first from it.
Start saving as early as possible
Saving for your retirement is a long term process. It requires consistent and a disciplined investment. Steady investment for long period not only diminishes the risk of market, but also enhances your investment return over time.
The key element of saving up plenty of amount for your retirement is to let your money work for you.
With this instance, you will be astonished with the miracle of compound interest.
Let’s assume you invested a capital of one lakh rupees in the year 2008. If you gain a return of just 10% each year, you would have earned around 2,60,000 Rs after a period of 10 years.
Later on, if you keep on earning the identical interest for additional 10 years, you would have generated Rs 672000 in the year 2028. That is the miracle of compounding. The sum of initial invested capital grows with time.
Calculate your monthly investment for your retirement
Save Slight by Slight
It is not required to save plenty of amount at once, initiate saving slight by slight. There are several investing for retirement plans in which you can invest, initiating from a least SIP amount of Rs 500 per month.
The lock-in time is 5 years. But there are several open-ended plans you can opt from. So retire big, with a small start.
Check out our retirement focused plans online!
Mutual Fund Planning for Retirement
Generally, a retirement investment plan includes two stages- that is Accumulation and Consumption. Let us study more about them:
During your working stage of life, you are capable to gather capital for your retirement. At this period, you can invest in several long-term investment plans according to your risk profile.
Let’s assume that I am a retired person. This is the phase of my life where I would need money to finance my daily needs. At this phase, all my gathered funds should be deposited in safe plans such as debt mutual funds from where my monthly income can be drawn.
Why you should plan for retirement with Mutual Funds?
Though there are numerous investing for retirement options, here are some benefits of mutual funds over other retirement options.
- These are tax effective instruments:
Long-term investment gains through equity mutual funds are thoroughly tax-free. For debt mutual funds, before indexation it is 10% and after indexation it is 20%. It has been observed several times that after indexation adjustment, the tax on capital gain from debt mutual funds also reach to be zero approximately.
Read Related Blog: How ELSS mutual funds are best for tax savings and retirement planning
- These are highly flexible investment solutions:
Distinct from the pension plans, there is no restriction on withdrawing the consistent premium payments or attempting the partial or complete withdrawal in between. You can terminate your investments without any penalty.
- These are Investor friendly and offer high transparency:
Mutual Funds have broad range of schemes. The data regarding investment objective, past returns, risk associated, the fund manager etc. can be easily extracted and is available publically. Whereas, pension schemes are not this much transparent.
With a good income source during your retirement, you can enjoy a stress-free life. This is because after retirement, it is the time where you don’t have any burden of work. So this time should be enjoyed without any worries. For the best retirement investment plan, you can approach a supreme retirement planning service by Swaraj Wealth which will be helpful to generate higher income source after your retirement.
So what are you waiting for? Start investing for your retirement right now!
Mr. Ajay Kumar Jain, M.Sc, Chairman And Managing Director
Being the Chairman And Managing Director, he focuses on holistic investment planning and wealth management and tries to make investment planning simpler for retail and HNI investors. Investor education is one of the prime things that Mr. Ajay Jain focuses on as he believes financial education is the foundation of successful investing. With over two decades of experience, Mr. Jain has made a mark in the Indian mutual fund industry due to his compassion and sheer hard work.