Experts advise investing retirement benefits in avenues that offer guaranteed and highest returns so that one does not need to compromise on living standards even after retirement.
Money9 Helpline hosted Plan Ahead Wealth Advisor’s founder and CEO, Vishal Dhawan to resolve all the queries related to early retirement.
Here are some queries:
Dhawan: It is great to know that you identified a passion that you are interested to pursue post-retirement also. You are right now 25 years old and have a good amount of time in hand to plan your retirement at 50. You can twist your portfolio to a riskier side like equities. I am also assuming that your savings rate is good, so it is good if you invest in equity. Also, ensure you have enough health and life insurance. You should have a backup just in case, in future your saving potential or income generation reduce.
Dhawan: PPF still is a very efficient instrument, for high bracket income rates. It has some sort of subsidised rates available. PPF gives a little over 7 % rate. It is an excellent account for retirement planning If you already have an EPF account as an employee, use a combination of debt and equities.
(Follow Money9 for latest Personal finance stories and Market Updates)
It is always better invest via MFs where one can hire some of the best minds to work for them at fees as low as 1-2% of your corpus
Some joint life insurance plans offer fixed monthly payments to the spouse in case of the death of the primary insured
You’re not alone if you’re in this dilemma. It’s certainly a prudent financial decision to pre-pay the home loan at regular intervals.
The logical question then is why is there an insurance of deposits up to Rs 5 lakhs if all the savings are safe?