1. SWPs are the perfect way to meet retirement expenses and needs if your MF portfolio is decluttered.
2. Earlier, grown-up children provided both financial freedom and security to their parents, but today, in addition to raising their children, parents themselves have to think about their post-retirement financial freedom and security.
3. A few tips for retirement planning:-
a) Maintain cash and flexi-deposit of 6 months household expenses.
b) Match annual expenses with income through 4-6% SWP from 25-30x retirement corpus.
c) Ensure corpus growth to beat stubborn inflation by investing through long-term SIPs in Growth option of good MFs with long-term high performance.
d) Utilise your learning and experience to earn through options like consultancy and part-time jobs, or by learning and practicing how investments are done.
e) Never spend more than 40% of your time in the new profession and keep 60% of your time reserved for all other things like hobbies, new learning, etc.
f) Don’t let financial numbers make you nervous, by tackling them head on to understand their concepts, as investing is about understanding yourself and what you want your money to do for you.
g) Don’t depend on employer's health policy alone and have one of your own, which is cheaper when bought at a younger age.
h) Don’t sign any documents before reading them - love with your heart, but sign with your brain is an apt old adage.
i) Save taxes through various investment options, to generate "savings" for reinvestment.
j) Take investment risks without committing risky mistakes, for building wealth, instead of saving, and learn from them as you go along.
k) Buy adequate family risk coverage through term life insurance, health cover, and even home insurance.
4. Financial goals should always be measured, set and reviewed at a pre-determined frequency for a course correction.
5. Lastly, there should always be a plan B for contingencies related to job, loans, family matters, etc.
2. Earlier, grown-up children provided both financial freedom and security to their parents, but today, in addition to raising their children, parents themselves have to think about their post-retirement financial freedom and security.
3. A few tips for retirement planning:-
a) Maintain cash and flexi-deposit of 6 months household expenses.
b) Match annual expenses with income through 4-6% SWP from 25-30x retirement corpus.
c) Ensure corpus growth to beat stubborn inflation by investing through long-term SIPs in Growth option of good MFs with long-term high performance.
d) Utilise your learning and experience to earn through options like consultancy and part-time jobs, or by learning and practicing how investments are done.
e) Never spend more than 40% of your time in the new profession and keep 60% of your time reserved for all other things like hobbies, new learning, etc.
f) Don’t let financial numbers make you nervous, by tackling them head on to understand their concepts, as investing is about understanding yourself and what you want your money to do for you.
g) Don’t depend on employer's health policy alone and have one of your own, which is cheaper when bought at a younger age.
h) Don’t sign any documents before reading them - love with your heart, but sign with your brain is an apt old adage.
i) Save taxes through various investment options, to generate "savings" for reinvestment.
j) Take investment risks without committing risky mistakes, for building wealth, instead of saving, and learn from them as you go along.
k) Buy adequate family risk coverage through term life insurance, health cover, and even home insurance.
4. Financial goals should always be measured, set and reviewed at a pre-determined frequency for a course correction.
5. Lastly, there should always be a plan B for contingencies related to job, loans, family matters, etc.