Recently started working in a well-paying job. Lives with his parents. Plans for his Wedding, Car, House and more.
Most people don't know what they want in their life, want to own, to achieve, to do, to become before they die, kick the bucket.
The benefits of having a financial plan include:-
The key steps involved in planning for your retirement are:
Estimating the post retirement expenses correctly is important in retirement planning. For most people retiring usually means after attaining the usual retirement age around 60 years. Usually by this time you are an empty nest because your children would have grown up and become financially independent. This makes it easy to estimate your expense post retirement which is usually the expenses of your spouse/partner and yourself.
So take your current expenses and remove those that you are not going to incur post retirement, usually bring up your children expenses, travelling to work etc. This will increase at the rate of inflation over the time period till you retire.
You would need to plan for other big ticket goals like children higher education and marriage, and other expenses separately.
You would need to plan for other big ticket goals like children higher education and marriage, and other expenses separately just like regular retirement.
Here are a few guidelines to ensure success:
Debt related investments: To avoid any uncertainty and rude surprises ensure you invest the debt portion in very safe assets e.g. FD in the best/largest bank even if the interest rates are not the highest. This will give you stability and security at a portfolio level, enough to handle the volatility of your equity investments
Equity investments: For the equity portion you would require expert help and guidance as it is more complicated and dynamic. Make sure you can trust the source of advice and its best to use one that is transparent and without conflict of interest i.e. they charge fees to you but don’t earn any commissions and brokerage from your investments. This ensures you get advice that is 100% in your interest. Use a SEBI Registered Investment Adviser if your current surplus is already large.
Invest in high quality company stocks and look for reasonable prices for your direct stock portfolio. Complement this with safe mutual funds. Use Automation like having an SIP to ensure your monthly investments happen without fail.
Once you have a plan you will need to make the right investments especially in equity and then manage it over time and the market movements that are always present. Over the years, since 2009, Moneworks4me has provided unmatched transparency, great quality and unbiased research, to customers and users. Moneyworks4me has investment solutions that will suit your portfolio size and your needs.