Retirement Planning: Old age is a stage of life that everyone has to go through. With increasing age, your body’s capabilities also get affected. Therefore, it is wise to do retirement planning in advance, so that when you reach that stage of age, you face no financial problems. To secure finances for your old age, it is very important for you to have enough money because, in old age, when your body is no longer capable of working, your accumulated money comes handy.
To accumulate wealth, retirement planning should be started along with the job. Know from financial expert Deepti Bhargava some strategies for retirement planning that will help you stay away from financial crunch in old age.
Estimate old age needs and expenses
While doing retirement planning, first of all, you need to estimate what expenses you will need in old age, i.e., how much money you will need.
You may not be able to find out all this accurately, but based on the way you have seen inflation in the past years, you can get the idea that the thing that is available for Rs 300 today will cost you this much by the time you reach 60.
Keeping in mind the current rate of inflation, you can assess that your daily expenses will be this high at the age of 60.
According to such calculations, you should plan to collect a retirement fund.
Follow 50-30-20 rule
Adopt the 50-30-20 rule for savings.
According to this rule, you should withdraw 50 per cent of your income for essential household expenses.
Invest 30 per cent to fulfill your hobbies, and save 20 per cent in any condition. E.g., if you earn Rs 60,000 per month, then according to this rule, you can withdraw Rs 30,000 for essential expenses, fulfill your hobbies with Rs 18,000, and save Rs 12,000.
If you invest Rs 12,000 every month in SIP for 20 years, you can earn more than Rs 1 crore in 20 years.
It is very important to invest
Whatever you save from your earnings, start investing it.
Do not be careless at all in this matter.
Investment is the only way to rapidly convert your deposited amount into wealth.
Today, there are many investment options available with very good interest rates.
In recent times, SIP has been considered a very good investment option.
Despite being market-linked, it has seen an average return of 12 per cent.
If you invest in SIP even at the age of 30 and continue investing for 25 to 30 years, you can earn good profits.
Financial advisor help
You can also get the help of a financial advisor for saving and investing money.
They can help you prepare a better strategy in this matter.
With this, you will be able to manage your retirement portfolio easily.