Benefits of planning retirement and how we can do it?
What does retirement mean to you? Does it mean along with your job you have to give up living too? Of course not. It\’s important to start planning for retirement as soon as you can, irrespective of whether you just started earning or are halfway through your job life. Life expectancy isn\’t a fixed number and while life throws at you unexpected calamities, it\’s better to be prepared psychologically & financially.
There are several benefits of retirement planning when done beforehand. Here are 5 reasons why it\’s better to start planning early:
Security & Safety
When you have an ample amount of wealth lying at your disposal, it becomes easier for you to relax. Investing is one way to ensure that there is a constant flow of wealth coming your way. The other way is to start saving. But you can never be sure how much to save and what will be the picture 10 years from now with the rising and dropping rates of amenities. So when you have a bank account with cash in multiple digits, it multiplies your peace.
If you are looking forward to starting that business which you have been planning since college, then retirement is something you should start taking seriously. You might want to do proper planning so that you can take care of your career-related financial decisions. If you want to start your own practice you would need capital and you can do so by looking into some retirement plans.
We are all tired of taxes but you can finally take a break from paying hefty taxes with retirement planning. It helps to reduce the amount of income taxes you pay in your retirement. When you invest, there are investment options where the wealth that you generate are tax-free or are low percent taxable. Talk to an advisor who can help you open pools where money can be withdrawn strategically with no or very less tax.
Taking Care Of Family
While you might be planning for your retirement, a big chunk of your heart worries about your family. You don\’t want to leave them helpless if you were to leave during your retirement years. Your retirement wealth could also be legacy which you can pass over to your children. If something happens to you it would help your spouse or loved ones to live stress-free and not be dependent on anyone.
The best thing about retirement is being able to live worry free and do things you always wanted to do, 100% guilt free. Yes! That\’s what retirement is all about and for that, you need to make sure you are financially aided to be able to check off all those wishes. While having lived your life with pride, dignity and being completely independent, you sure don\’t want to be dependent on anyone for money. Retirement planning will help you to live without any regrets.
Now that we have established attractive benefits of retirement planning, it\’s time to understand how one plan can for their retirement.
One of the best retirement plans is to invest. You can invest in various investment options like mutual funds, Sip online, tax-free bonds, fixed deposits. Mutual funds can help you generate stable returns. You can look for the best mutual funds to invest in India and choose a plan accordingly. There also the option of sip mutual fund which helps create discipline in your investing habits. Now with digitalization, mutual funds investment in India has become so much easier. But you must be careful with what you are expecting. If you have a low risk taking capability then you shouldn\’t be taking up investing options with high volatility even though they produce a huge amount of wealth. You can always consult a fund house who can provide you with a fund manager. The fund manager will help you figure out what are the best plans for your portfolio.
Change the meaning of retirement, make it the best time of your life by simply being strategic now. Start your retirement planning today!