Planning for retirement: Follow THESE strategies to ensure a healthy life after retirement
It is always wise to start saving early to live well in old age. If you want to ensure a comfortable retirement, start using these tactics at an early age to ensure you don’t face any problems later in life.
Estimate the need
When planning for your retirement, you must first determine how much money you will need for your future expenses. For example, if you are 26 now, everything will cost you a lot more at 60. Make an accurate estimate of your expected expenses. If you are aware of this, you can make financial adjustments accordingly.
Invest
Make it a point to start saving money now from your income. Your monthly money should be invested wisely. You need to make SIP investments, right now. Even at the age of 26, you can earn a considerable profit from SIP investments. SIP investments last between 25 and 30 years. The compounding benefit will increase with the duration of the investment. A 25-30 year investment can also make you a millionaire.
Rule of thumb 50-30-20
Use the 50-30-20 guideline while saving money. This rule states that you must set aside 50% of your income for home-related expenses. Spend 30% of your income on interest and save 20%. According to this rule, if your monthly income is 70,000 rupees, you should withdraw 35,000 rupees for necessary expenses, 21,000 for leisure activities and 14,000 for investments. In 20 years, you could earn more than a crore if you made a monthly SIP investment of 14,000 rupees.
Financial orientation
To save and invest money, you can also seek help from a financial advisor. They can help you develop a more effective action plan. So managing your retirement portfolio will be simple for you.