It is difficult to plan one’s future when one isn’t aware of the avenues of earning a steady income, especially after retirement. At such a situation, one’s financial future and living standard depend entirely upon their lifestyle pattern, medical expenses, prevailing rate of inflation and other factors. To combat the blow of unforeseen expenses, it is always a smart decision to save up for emergencies and to build a corpus for the same.
Today let’s discuss how to build a retirement corpus in order to lead a comfortable life after retirement with these tips:
- Start Saving Early: To avoid the financial burden and the rush of retired life, start saving from an early age. Saving from an early age will help you to accumulate enough wealth to take care of your immediate as well as delayed financial requirements. Save your hard-earned money in retirement friendly schemes, fixed deposits or in plans that yield a high rate of interest.
- Don’t just save, invest: At one point you are bound to realise that your savings are not enough to build a sufficient corpus to lead a comfortable retired life, we can only hope that you realise it before you enter the retired phase of your life. To ensure a comfortable living standard and a steady flow of income post retirement, don’t just rely on savings. Invest your money in market schemes that earn higher returns over time and facilitate more earnings to build a retirement corpus.
- Invest in Good Schemes: As per your risk appetite, financial goal, time horizon and intended corpus amount, invest your money in market schemes that will earn you better returns at low risks. Young investors can opt for risky investments and enjoy the benefit of compounding, but if you are close to your retirement you should put your money in retirement-friendly schemes. Choose retirement-oriented debt instruments that not just offer you a steady source of income but also help you to build a strong corpus even with a limited amount.
- Opt for a broad Investment Horizon: Just like early savings, starting your investment early comes with a galore of benefits, including the benefit of compounding effect. Early investment and a broad time horizon tend to work together and impact the investment of the investors in a positive way. The longer you keep your money invested the more will be your anticipated returns, which will directly help you to build a strong retirement corpus.
- Assess your investment portfolio: With growing age and increase in income one’s financial goals is bound to undergo changes too. Moreover, factors like inflation, changes in the economy and governmental policies tend to affect one’s investment too. Make sure to reassess your investment portfolio regularly to incorporate changes and to cushion your investments against risks. This will help you to build a solid retirement corpus by minimising the blows of the market risks with new changes.
Consult our financial advisors to know more about how to build a retirement corpus in order to secure your future.Follow Us: