Retirement: This doesn’t mean end of life, it means living the “rest of your life” in a relaxed and comfortable manner. So, it becomes very important to consider few things well in advance.
- Calculating your expected expenses: You should first calculate what would be your average monthly expense after retirement given the current standard of living, medical expenses, hobbies, travel and most importantly inflation. This will give you a rough estimate of the corpus amount that you need to accumulate from now till you retire.
- Figuring out your financial goals and risk ability: Take a proper look at your entire financial situation, what you would like to achieve and your risk tolerance.
- Considering a proper mix of investments: It is always better to have a portfolio of investments that moves up and down under different market conditions and different classes of funds.
- Securing your children’s future: Make sure that your children’s education and marriage requirements all are accounted for so that you won’t have to touch your retirement corpus.
- Protect your goals: It is important that you have proper healthcare and life insurances in place that would protect and help you achieve your retirement goals such as life insurance pension plans.