3 Tips for an Effective Retirement Planning

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Are you worried about your financial health post retirement and have no clue where to start?

Thanks to advancementsin technology and the penetration of the internet across the length and breadth of India, help for anyone is just a few clicks away.

You can go online and use available tools and resources of any reputable insurance provider to arrive at an informed buying policy decision. These portals now provide the option of using an onscreen calculator to figure out the exact amount you need to earmark to avail a child plan and for better retirement planning. All you have to do is to input some basic information and the results will be displayed in a matter of seconds.

Take for instance, a child plan calculator, which will typically seek your inputs on things like your current age and that of your child, the intended education course, your child’s age when the need for such funds will arise and, most importantly, the expected rate of inflation at that point in time. The moment you key in these details, you can get a target that outlines the amount of investment required and the tenure over which you will have to make such an investment to meet your desired objective.

Add to this the fact that there is no dearth of expert opinions to read online on the subject of retirement planning. By weighing in all the pros and cons of any available investment option, you can make a decision that can serve your best interests and that of your loved ones, once you have retired.

3 Tips for Retirement Planning

  1. Starting early helps – A long-term approach to a happy life post retirement must consider making investments as early in your career as possible. This will also help you in saving for a longer duration, meaning that you can benefit from compounding and build a good corpus.
  2. Take into account the risk factors – Remember, not every financial investment decision you make will be devoid of risks. If you are investing in products where returns are market linked, then you must factor in your risk appetite, in the event of unexpected results.
  3. Never fiddle with your retirement corpus – Try to look for alternate means of fund generation when you are cash starved or have to meet some urgent financial need. Avoid taking money out of your retirement corpus to make sure you don’t exhaust the funds before attaining the retirement age.

Unfortunately, there are many people who don’t factor in the retirement phase in the grand scheme of things when they are doing financial planning. It is a golden rule to never disregard the inevitable and make smart investment decisions today for a better tomorrow.

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Finance

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