Tips For Creating The Best Retirement Plan In India
The best retirement plan in india is to start from the day you start making money. The fact is that the best plan is different for each individual. Here are some rules for your retirement planning that could help you spend your old age in comfort.
The first rule is to save at least 10% of your monthly income for retirement. This would normally be the case because 12% of your salary would be contributed to your PF account along with your employers contribution. The good thing about this part of your savings is that you don't have any power over it because you have to pay the 12%. At the same time, you should also make additional efforts to save more on a monthly basis. If it could be a 10% in addition to the 12% PF, you are doing enough for your retirement.
The next strategy is to increase the percentage of investment with the increase in your income. Your income is set to grow annually. Therefore, you should also fix a percentage by which your investments would grow accordingly. The interesting thing is that not most of the people would do this. While inflation would play its part, it is important to make that extra effort to increase the percentage of investment, even by a small margin. This is one of the best retirement plan you could create for your future.
When making a job change, you shouldn't withdraw your EPF balance. Rather, you must transfer it to a new account and submit it to your new employer. When you move to a new workplace, this must be your top priority. If you withdraw that fund, you are simply eating into your retirement funds.
When it comes to the performance of an investment portfolio, keep in mind that it would depend more on the asset allocation than the returns offered by each investment. The amount of money that you have n your last day to work is going to depend on the way you divided your investments into fixed income, stocks and other instruments.
According to investment experts, your equity exposure must be calculated by subtracting your age from 100. If your age is 25, the retirement planning would have 75% of the portfolio in equity. If you are 40, the ideal portfolio for equity would be 60%. Once you have retired, the exposure to equity should be limited to 25% of the portfolio.
The key is to invest in funds that would carry out redistribution based on the investor age. With age, the exposure to equity is reduced itself. Follow the tips mentioned above and get the advice of a consultant, and you could create the ideal retirement plan for yourself.
The first rule is to save at least 10% of your monthly income for retirement. This would normally be the case because 12% of your salary would be contributed to your PF account along with your employers contribution. The good thing about this part of your savings is that you don't have any power over it because you have to pay the 12%. At the same time, you should also make additional efforts to save more on a monthly basis. If it could be a 10% in addition to the 12% PF, you are doing enough for your retirement.
The next strategy is to increase the percentage of investment with the increase in your income. Your income is set to grow annually. Therefore, you should also fix a percentage by which your investments would grow accordingly. The interesting thing is that not most of the people would do this. While inflation would play its part, it is important to make that extra effort to increase the percentage of investment, even by a small margin. This is one of the best retirement plan you could create for your future.
When making a job change, you shouldn't withdraw your EPF balance. Rather, you must transfer it to a new account and submit it to your new employer. When you move to a new workplace, this must be your top priority. If you withdraw that fund, you are simply eating into your retirement funds.
When it comes to the performance of an investment portfolio, keep in mind that it would depend more on the asset allocation than the returns offered by each investment. The amount of money that you have n your last day to work is going to depend on the way you divided your investments into fixed income, stocks and other instruments.
According to investment experts, your equity exposure must be calculated by subtracting your age from 100. If your age is 25, the retirement planning would have 75% of the portfolio in equity. If you are 40, the ideal portfolio for equity would be 60%. Once you have retired, the exposure to equity should be limited to 25% of the portfolio.
The key is to invest in funds that would carry out redistribution based on the investor age. With age, the exposure to equity is reduced itself. Follow the tips mentioned above and get the advice of a consultant, and you could create the ideal retirement plan for yourself.
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