Things To Do If You Are Retiring In 10 Years

 If your retirement is approaching it is time to shore up your portfolio. The idea of retirement is an exciting one, it feels like reaching the destination after a long journey. However, it is important to maintain a comfortable lifestyle even after retirement. This means you need to take stock of your investments because they will become your income source to enjoy a comfortable lifestyle.

Everybody wants a comfortable retirement which can help to fulfill unfinished passions like volunteering or travel. However, for this to happen, one needs a realistic view of one's finances. Many times, due to insufficient savings, there is a gap that needs to fill or one may have to alter his retirement lifestyle. The expenses should match the present income you have. However, you do have the option to eliminate unnecessary expenses and save money. During retirement, you have to survive purely on your savings. 


If your retirement is still a few years away, it is time to evaluate your portfolio. Stocks are still the best bet to beat inflation and achieve growth. Ideally, you should strive to maintain a sound mix of stocks, bonds, mutual funds, and other assets that fits your risk tolerance and investment horizon. This is the best time to start trimming your debts. You should consider paying all the loans before you retire. By limiting your debt payments you can minimize the interest payments and save considerable money. Consider savings on interest as a risk-free income earned. 

If you have invested in fixed deposits, PPF, or any other government scheme, you should take stock of the likely retirement corpus. This will help you to plan your post-retirement expenses. This is a crucial step because in the later years the medical expenses tend to be quite high. If you do not have adequate coverage, you should consider buying one to protect yourself from unpleasant situations. If you buy a health policy now, it will attract a lower premium and avoid rejection. 

Along with income and expenses, you need to plan for tax savings too. If you have a decade, you can invest a part of your income in ELSS(Equity Linked Savings Scheme). This will help you to amass a decent corpus and also take advantage of tax benefits by opting for SWP (Systematic Withdrawal Plan). 

A retirement decade away can seem like a distant event, but it is extremely important for you to plan ahead. This will help you to set realistic goals in post-retirement life. It is never too late to start saving.

Comments

Post a Comment

Popular posts from this blog

How SIP Calculator Can Help You?

Image
  www.investonline.in  website provides a tool known as an easy-to-use SIP calculator for comparing different plan options. You can use SIP calculator to gauge the potential returns your capital will get in future. Example: If you invest ₹1,000 in a ₹50 per unit SIP, what kind of returns will you see? You can select a 5-year rolling return for your calculation. The result shows an expected growth rate of around 12% per annum for the ₹1,000 investment. The longer the period, the higher the returns. The tool calculates returns as a percentage. If your contribution is made for a 15-year period, the estimated return on your investment will be in the range of 15.5% to 17.7%. This shows that SIPs have the potential to deliver higher returns compared to other investment options. However, you will also get higher risk. Minimum Invested Amount Most SIPs come with a minimum amount for investment. This is what the fund house requires as part of the SIP contract. The minimum amou...
Read more

Why Arbitrage Funds Are Attractive For Conservative Investors

Image
The markets are trading at lifetime high seas but many investors are jittery and are hesitant to invest in the present market. Historical e equity funds have delivered above-average returns and will continue to remain the best asset class. However, equity investments are volatile and one should always and sure of the safety of their investments during volatile times.  If you find present levels of the markets quite high and fear volatility you can invest in arbitrage funds. The objective of the arbitrage fund is to preserve capital while delivering modest returns on capital invested. Arbitrage funds invest an equal portion of equity and futures. For example, if the fund buys 1000 shares of X company encash market it sells the same number of shares in the futures market. They also invest up to 35% in debt. This strategy ensures that if there are no arbitrage opportunities present in the equities they can generate the income from the debt investments.  Arbitrage funds make money...
Read more

Investing Mistakes To Avoid And Why You Should Start Investing Now!

Image
As the 21st century approaches, new technologies and ways of thinking are making it easier to harness resources and opportunities to create value for others. The impact of technology is so profound that many of the questions which young people need to answer for their own development are about harnessing the power of new forms of communication to increase our social and economic impact. Today’s generation is the most indebted and the most inexperienced investors in history. They also struggle with traditional methods of saving and investing. Some people are very risk-averse and won't spend any money at all, and some are very aggressive and spend like crazy. A lot of the debt that millennials are taking on is what's called "involuntary debt," where they owe the money, or someone lent them the money to buy something. So they're paying interest on something they don't own. So it's a little bit of a self-inflicted wound. And the other thing that can happen...
Read more