Retirement Planning
Retirement planning is becoming the most important financial planning in our lives due to increasing uncertainty of career and job. People are now interested in retiring early. Many peoples are very much interested in fixing their retirement by the age of 45 or 50 years. They have a dream of doing something of their own in the future without affecting the quality of life.
For proper retirement planning, you should start saving at a very early stage of your career. Your job becomes very easy if you start early at the age of 25 years. Experts are saying that Start saving from your first income for the retirement.
Retirement Options- Safe Plans with Stable Growth
New Pension Plan (NPS)- NPS is open to all but, is mandatory for all government employees. An investor can deposit a minimum of INR 500 per month or INR 6000 yearly, making it as the most convenient for Indian citizens. Investors can consider NPS as a good idea for their retirement planning because there is no direct tax exemption during the time of withdrawal as the amount is tax-free as per Tax Act, 1961. This scheme is a risk-free investment as it’s backed by the Government of India.
Equity Fund
Equity fund are the best way to build a good retirement corpus. Since retirement for many of us is at least 10 year from now. Its good idea to invest in equity funds. You can invest for more than 5 years or less depend upon the customer risk.
Long Term Income Debt Funds
These funds invest in Corporate bonds and Government of India bonds that have a long-term maturity period. Long term income funds usually benefit when the interest rates are moving downwards.
SIP
You can start from SIP(Systematic Investment Plan)in an equity fund. Here you can buy more units in low values.you can invest in debt funds,when 5 years are left for your retirement you take this generally by taking STP(Systematic Transfer Plan) and invest 20% of the collected corpus every year in debt plan. ZIn this way when you come come at your retirement age, reduces in risk and you can earn high return value
