Monday, 19 December 2011

Thinking of Your Retirement Plan

Retirement planning can begin at any age. Since everyone wish for a comfortable retirement it would not be possible without a right plan. A person should start planning his retirement as soon as he gets financially independent. The major concern for anyone’s retirement is financial security, which requires financial planning, commitment and money. A comprehensive retirement plan includes long-term growth oriented investment-linked insurance products, keeping rising cost of living in mind.

It is believed that one should not delay planning for retirement and the earlier the better. The more one suspends his retirement planning the more one needs to cut down the investment horizon. For instance, if you start saving at 25, then you will need 35 years of investment horizon if you aim to retire by 60. In order to diversify your investment portfolio and to reduce the risks, it is advisable to invest in debt instruments such as Provident Funds, fixed deposits and bonds that are issued by government or reputed financial institutions. Based on individual’s risk appetite, investment horizon and desired returns, one should be on a constant search for new and better opportunities for investment. With evolving financial markets, new instruments and investment opportunities are coming up that one can choose that would match one’s retirement plan. Gold has gained the confidence and trust of investors for a long time, and investing in gold has proved to be a safe haven for many. Considering the recent upside and further scope for higher returns, it would make sense to invest in gold ETF’s than in physical gold keeping retirement as your goal.

Another crucial aspect of your retirement planning is healthcare; when you are healthy, it is advisable to look for long-term care insurance. There are plenty of policies and schemes available in the market but it is recommended to take professional consultation before you enter in any contract. Finally, buying a house of your own may serve in two ways, mental satisfaction of asset creation and will serve as source for cash flow when you have no other source of income. This is called as `reverse mortgage’. Thus, retirement plan can liberate from post-retirement worries and will provide you and your loved ones a peaceful life.

1 comment:

Anonymous said...

In future and option traders trade in lot’s so one can earn or loose quite big amount so it’s always advisable to avail future tips from the stock market experts.
We as a stock market trader should remember we are trading in stock market to earn money from share trading not to lose it as it’s our hard earned money so we should trade with due care.

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