Retirement is that golden era of an individual’s life that they eagerly look forward to. And why shouldn’t they? One works hard throughout their adult life to accumulate a nest egg they can rely upon. Retirement is that time when an individual most likely has all the resources and time to tend to activities or hobbies that couldn’t make up the charts in their earning professional era. Clearly, it is one of the most important financial goal on one’s life.
Are you sure if you have saved enough to cater to all your needs post retirement? If you are unsure, don’t worry, we have got your covered. In this article we will look at three things that you can do right now to ensure your financial well-being post retirement.
- If probable, upgrade your risk appetite
Upgrading risk profile means working towards a way that allows you to significantly increase your returns on your mutual fund investment without increasing the investment duration or the investment amount. Not sure how you can achieve this. Well, you can easily achieve this if you increase your equity exposure in your investment portfolio. Having said that, you must never go out of the way. Each investor has a varying level of risk appetite. Respect and accept your risk profile and work around a way how you can earn maximum returns without going too overboard on risky investments.
- Save for a rainy day
One of the most important things a pandemic such as COVID-19 taught us is that it is always a good idea to save for a rainy day. Having an emergency fund in place is important during all phases of life – including post retirement. An emergency fund is an amazing way to get out of sticky situations without digging into your savings or investments. What’s more, you can never be too prepared, especially post retirement. So, it does not harm to have an emergency fund in place. The ideal amount for an emergency corpus is an investors three to six months of living expenses.
- Save more and lose the chunk
As your earnings or income increase over time, it is important that you increase your savings as well. Increasing your investment amount will either help you to achieve a bigger corpus for your investment goals or help you reach your goals on a timely manner. Also, you must also make sure that you review your mutual fund investments regularly so that you can get rid of the junk that do not serve your purpose anymore.
When creating a financial plan to cater to your post-retirement needs, do not forget to factor in several parameters such as expenses, effect of inflation, risk appetite, post tax returns, time duration, financial goals, etc. Also do not forget the power of time. The early you begin with your investments, more would be the power of compounding, and higher would be the corpus. So, don’t waste your precious time and invest in mutual funds today. You can also invest in mutual funds online if you are too lazy to go and stand in long queues. Happy investing!
I am Arjun Kumar. I am the owner and administrator of Finance Gradeup. I have completed my education in Arts & Technology. Arjun Kumar usually has interests in playing games, reading and writing. He was a brilliant student during his college days. He also works for many private companies, but the main interest of Arjun Kumar is digital marketing. He thinks that reading is a must before providing any quality information to his readers. You can find Arjun Kumar on much social media handles online, or you can learn more about him in about us page.