How to start Retirement Plan Today: Have you planned for retirement?

There is a lot of time for retirement many people wonder why they are thinking about it from now on.
So do not plan for this. But the fact is that the faster you plan for retirement So good. From the earliest days of earning by including in long-term goals you need to start investing for this.

Here tips for retirement planning, before you think and decide how to start retirement planning to have good healthy lifestyle as well maintain health and safety during pandemic conditions.

 

How to start Retirement Plan Today

How to increase savings Today?

Try to save the bulk amount of your income. As income increases at the same time, be careful not to increase expenses. Try to save more money holding different source of income i.e think or plan about what are the second source of income . 

Inflation will increase over time. As a result, the money you are hiding will not fit your needs. That is why it is important to make a habit of saving and Investing SIP stocks for high returns accordingly. An emergency fund should be set up to cover at least 6-12 months of monthly expenses.

How to start investing and making money

You need to reduce costs and start investing even if your income is low. Invest with a small amount of money first. Investments should continue to increase as income increases each year. Only then will it be possible to overcome inflation and earn returns for long-term goals. Must invest at least 30 percent of income. 

Warren Buffett once said, "The first rule of an investment is don't lose money. And the second rule of an investment is don't forget the first rule".

Buffett avoids unnecessary spending and once said, "Do not save what is left after spending, but spend what is left after saving."

Start health insurance plans for self and family

Attention needs to be paid to investments in the early years. Health insurance plans made for other purposes, including insurance, run smoothly. 

That is why from the very beginning of joining the job, one has to take personal, family life and health insurance. You should have specialized health insurance policies other than group insurance provided by the company. 

Family floater policies can be considered for family health insurance plans. Having a term insurance plan for the family future is a must if family members are dependent on your income. 

Make sure you have life insurance at least 12-15 times your annual income. It is advisable to stay away from policies like Endowment, Money Back, Who Life, ULIP. Of these, insurance coverage is the lowest return.

Need to take investment risk

Buffett once said, "Risk comes from not knowing what you are doing" As a physician, this rule should make a lot of sense.

Investments must not take risks if they are to outperform inflation and provide benefits. The portfolio should contain a certain percentage of equity investments. 

However, investing without realizing it can lead to complete loss. Therefore, investors in equities are advised to consult a financial expert and seek their advice and guidance. 

Choose an equity-based mutual fund i.e equity investment strategy. Invest in an index fund on a sip basis. UTI Nifty Index Fund can be selected.

Start long term financial planning model as soon as possible

Realize that the sooner you start investing, the more funds you can raise. Compounding can be beneficial if investments continue for a long time. 

For example, if you are 45 years old, by the time you retire at age 60, you will have 15 years to retire. If you start investing Rs 10,000 per month, you will not be able to raise around Rs 35 lakh with an 8 per cent return estimate. 

If you start investing at the age of 35 at the age of Rs 10,000 in the same month, you will be able to accumulate about Rs 95 lakh and if you start at the age of 30, you will be able to accumulate a corpus of around Rs 1.50 crore. 

At the age of 30, the risk-taking capacity is higher. So if you invest in equities, you can expect a return of up to 12% in the long run. If so, a fund of up to Rs 3.50 crore can be raised.

Finally, in order to enjoy a Happy retirement life without relying on others, a plan is to start investing as soon as possible. The portfolio should be balanced by investing the savings in two or three tranches rather than in a single tranche. The portfolio should be reviewed at least once a year.