Tips on How to Start Investing for Retirement in 2019?
The period of retirement can be full of complexities if you are not financially prepared for it. A lot of people consider investing for their retirement when it is too late and as a result their finances are not up to the mark.
The best age to start investing for retirement is as early as possible. But investing for your retirement can be a difficult task if you don’t know how to invest and which schemes are beneficial for you.
There are a many retirement investment options in India to choose from and so it becomes even hard to choose the right one.
Here are some tips you should keep in mind before starting with your investments to make the retirement rewarding and fruitful.
Investment strategies to plan your retirement in your 30s
Starting with SIP can be great
Choosing an SIP option in a retirement plan can be a great option for a better start. Choosing an SIP option avoid any pressure on your pocket, and still having the assurance that you have invested at the right place for a better retirement.
Don’t hold too much cash
Holding too much of cash doesn’t only means that you are taking greater risk but also it means that you are killing the purposes of investment. Keeping the cash in your locker or safe will benefit you with nothing.
Instead invest this cash at the right place and if possible extend your account’s saving limit to get multiple benefits from your banking provider.
Earning part time means better investments for the retirement
With the rise in gig economy there are a number of part time jobs. Try to enroll in some extra jobs to arrange money for your retirement investments. Get in a talk with your employer ask them to reward you flexible working hours.
Investment strategies to plan your retirement in your 40s
Consider investing in some pension funds
Pension funds are one of the best choices among people who are looking for rewarding investments for their retirement. Investing into pension funds is extremely easy and a widely available option. Plus the chances of turning the investment fruitful are higher as government has also announced some great plans for people looking for pension funds.
Mutual fund investment is a reliable option
Nowadays people are seeing mutual funds as the best available options for their investment. During the 40 s you are at peak income years and it is a good start for investing for your retirement. Plus, you can directly invest from anywhere by using various applications and can take out the funds whenever needs.
There are some companies that render mutual funds investment advice for retirement purpose. Consider taking some advice and make your retirement better than your expectations.
Investment strategies when only 10 years or less time left for your retirement
Have a look at NPS (National Pension Scheme)
As the name justifies itself National Pension Scheme is meant for retirement. The outcomes of NPS get even better when you start investing too early. But you can enjoy some of its benefits by enrolling in this scheme when you are close to you retirement age.
Never take a debt if you don’t need it
Taking a debt comes attached with multiple responsibilities and additional costs. If you don’t see the need of taking any debt then don’t take it. Also clearing the older debts is a start of investments for the retirement.
Clear each and every loan or debt you have to pay before you start putting the cash flow towards your retirement plans.
Downsizing is a great option
Are you planning to buy a new home with many rooms, even if you know that you don’t need it? This will probably ruin your investment plans; you need to consider investing into options that can benefit you in multiple ways and without burning a hole in your pocket.
Read this blog: Golden rules of retirement planning using mutual funds
The earliest you start investing for your retirements the better outcomes you will get. Keep searching for various schemes introduced by the Government of India for the individuals who are seeking retirement investments.
Following the above mentioned tips will help you in getting a great start for your retirement investment without any problems. If possible try to have multiple options for your retirement investment. Also analyze and compare all the retirement investment options in India before finalizing the best one.
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.