Earn Rs 1 lakh monthly? Your complete guide to investment for stress-free retirement

No matter if you are 30 or 60, sound financial planning is required all the time. However, this may differ at different stages of life. An individual may have certain financial targets during their 30s, and this may change according to your requirements by the time you retire.
Undoubtedly, today’s youth is well concerned about savings and investing for a risk-free future. They believe in investments and passive income to make more money. However, as an investor, you should search for investment opportunities that not only reduce your tax burden but also produce income at the maturity that is entirely tax-free while you retire. 
Harshvardhan Roongta, CFP, Roongta Securities said, “30-40 age bracket is very crucial in life. Individuals start their jobs, get married, start families and there are a lot of other responsibilities as well. So, if you start with a good financial goal in your early 30’s, you will be able to have a good corpus amount in the next about 20 years.”

Smart Financial Goals for 30-year-olds

1) Emergency Fund
2) Insurance 
3) Home 
4) Car 
5) Child Education
6) Retirement Planning
Hemant Rastogi, CEO, Wiseinvest noted, “Post-retirement stage is very important in an individual’s life. Inflation will also rise till the time you retire. Don’t just invest all your money in a single investment scheme, instead take time and think thoroughly considering all the factors.”  He recommended tips to keep in mind for planning retirement. 

Tips for Retirement Planning

1) Ensure regular income 
2) Make a good portfolio in advance for your retirement – Bank FDs, small savings schemes and mutual funds. 
3) Generate alternative sources of income like property rent.
4) Fund for medical needs
Zee Business panelists in a special show ‘Money Guru’ aired on Zee Business recommended viewers to start investing early for a secured future and create different targets and invest accordingly. 

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Here’s a guide for savings if an individual of around 30 years is earning about 1 lakh per month 

Target Monthly investment
Insurance Rs 5,000
Emergency Rs 10,000
Retirement Rs 5,000
Child Education Rs 5,000
Home Rs 5,000
Car Rs 5,000

Never underestimate your post retirement planning. Your expenses may grow considering constant lifestyle changes, inflation rates and other day-to-day expenses. If you don’t prefer taking a job extension post your 60’s, having an adequate corpus for the next 15-20 years with regular income is crucial.
Hemant Rastogi recommended early investing in investment schemes that provided regular incomes and guaranteed corpus at maturity.

Regular income plans post retirement 

1) Senior Citizen Savings Scheme
2) Post Office Monthly Income Scheme
3) Pradhan Mantri Vaya Vandana Yojana
4) Systematic Withdrawal Plan (SWP)
“The return on the above three schemes is taxable. There are several options available for senior citizens, however, you need to look at several factors because not just gross returns but post tax returns are equally important. Other factors like your requirement and liquidity should also be kept in mind while investing in the scheme,” Hemant Rastogi added.
Harshvardhan Roongta said, “Asset allocation plan is necessary when you start investing. Keep long-term wealth creation in mind. You can start with SIP to easily manage market volatility. This is your line of action for risk management, emergency fund, child education and retirement.” 
Early retirement savings allow your money more time to grow, resulting in a higher retirement income. Taxes can be avoided by contributing to a retirement plan while you are still working.

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