Retirement planning is the most long-term financial planning. The sooner you start investing for it, the bigger your retirement corpus will be.
People across the country save and invest for different financial goals. Some need money for their higher education, some for a new bike. Some want to get a new car, some want a new house. People also make savings and investments for the marriage of themselves and their siblings. Retirement planning is the most long-term financial planning. The sooner you start investing for it, the bigger your retirement corpus will be. People plan for different financial goals at different stages of their life.
Actually, people do not have much responsibilities before marriage, so this is the best time to save and invest. When you have a job and you are independent. So you can invest maximum part of your salary. In this stage you can invest in high risk investment options. Like- Stocks, Small cap funds, Mid-cap funds, Equity funds, IPO etc. According to experts, at this stage, you can hold stocks in 80 to 90 percent of your portfolio. The remaining part can be kept in bonds etc.
can make small savings
The next stage in a person’s life is marriage. In this stage, couples need things like their own house, a car. At the same time, they also want to be financially capable enough for family planning. Couples are not able to think much about retirement planning at this time. They have short and medium term goals. At this stage, you must have life insurance and health insurance. You can make small savings through SIP at this stage. At this stage, 70 to 80 per cent of your portfolio may consist of stocks.
Invest in FDs and Hybrid Funds
In the third stage when you become parents. In this stage you are concerned about your children’s education, their marriage, your retirement etc. You save and invest for these goals. In such a situation, you should focus on the goal best investment. You should have adequate life insurance and health insurance to avoid any financial crisis. At this stage, you can invest in debt funds, FDs and hybrid funds. At this stage, 50 to 70 per cent of your portfolio could be of stocks.
You can invest in these savings plans
The fourth stage when it comes to your retirement. So most of your earlier investments are on the verge of maturity at this time. This is the time when your regular income is running out. In this stage, you have to depend on your old investments for your expenses. At this time you need to change your investment strategy, as you are not earning any regular income. You have to minimize the risk in your portfolio. In this stage you can invest in overnight funds, senior citizen savings plans, post office monthly plans, liquid funds etc.
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