The biggest question of mine to everyone is “ Have you secured your future “ inspite of earning a lot ..Spending a lot on different different , will have ephemeral after some time, but by spending money, my question is ,have you secured life when you go for retire.. If not, then how would you survive without Sufficient Money as you are at present, leading your luxurious Life and what I feel the life which you have led , the same standard of life has to be maintained. . Therefore the day you join any organization , your planning for the retirement should be executed immediately. By an Large, retirement planning is a process of saving and investing money to maintain the same life style after retirement . It also gives you Financial Security and same standard of living in your later years. So Retirement Planning means preparing today for your future life , continue to meet your goals and dreams independently , without worrying your expenses . Investment at a very initial stage makes the corpus very big , makes your life smooth & happy. We can say that Retirement planning is a strategy for long term saving , Investing and finally withdrawing money from a corpus which you have builtup , achieved financially and comfortable independent
Financial Independence : Older People don’t want to be dependent on their children Since they have lived their lives on their own terms , they don’t want to be disturbed and want to live their own terms .
Lack of Social Retirement Benefits : Although Pensions and EPF are existing but they are not enough to cover all the expenses and people have started giving more thrust on mutual Funds , giving more returns compare to other financial instruments to beat the inflation and also making the huge retirement corpus.
Rising Cost : You have to consider the importance of Inflation while planning for retirement which is a vital element . When we consider this , we don’t compromise with the standard of living as we start investing in those Financial instruments which are beating Inflation and giving higher return than inflation . Mutual fund is the only instrument which can beat inflation and give return more than the inflation .
Medical Emergencies : While Planning for retirement , we can’t ignore the Healthcare part as it’s a vital element and integral part of retirement planning . The Healthcare Inflation is growing a rapid pace, the cost of medical is also growing at alarming rate , we need to invest in those funds giving high yield .
Importance of insurance : Most of people don’t think about insurance as a part of Retirement Planning but let me assure you that it is a most important and indispensable part of your life . It’s a life cover of a surviving Spouse . If I am no longer here , she may struggle with Financially Crisis. Your Future is uncertain but Planning and strategies help you to minimize the risk . diversify your Investment by investing in Mutual Funds , Govt Securities . The sooner you invest , the better you get at the time of retirement
Set up a Goal : If you want that your money should be grown in crores and crores , you need to fix up a goal and as per your goal , you have invest in that instruments which will help to achieve your goal. Then You have to be very aggressive and invest in Mutual funds with Equity exposure because in the long run only equity has been giving a better return than any other financial instruments.
Start Saving : The Early you start , the better your corpus will be in the long run . Better start today .. It is normally a rule in Finance that you should save 20 to 25 % of your salary and every year there should be some increment in your investment . Expenses are not fixed, growing at a rapid pace therefore with the same rate your Saving should also be increased or minimum 10 % yearly to grow your Retirement corpus .
Emergency Funds : Have emergency funds for unforeseen events . Every one ‘s life has ups and downs . You can’t avoid all the bumps in the road but you can mitigate the damage by keeping some emergency funds. If you are not prepared for this , these obstructions may put a stop to your saving efforts ..
Monitoring your portfolio : keep the Track of your portfolio through your Financial Advisors. Incase any change is required , they may do it .
In this context, I would like to recommend the fund with which I am interacting on a day to day basis and feel happy after recommending this . The Fund is TATA RETIREMENTSAVING FUND- which has been giving a return of 16 % CAGR . The Best part of the fund is initially we can opt its Progressive Plan with 100% equity and gradually with auto switch facility available , we can go to its conservative plan and protecting our Corpus ..The Person who has invested as one time got the return of approx 16% where as SIPs in this fund has delivered more than 20% . The Design of this product with so many schemes such as Moderate , conservative and progressive help you to build up your Corpus bigger and stronger .Once the corpus is built up and you retire, you can opt systematic withdrawal Plan through this your regular income starts coming on monthly basis..Fund performance of this fund as per SEBI form given below.
| Returns | Tata Retirement Savings Fund – Progressive Plan | Nifty 500 TRI | Nifty 50 TRI | |||
|---|---|---|---|---|---|---|
| Period | Return | Rs. | Return | Rs. | Return | Rs. |
| 1 year | 38.69% | 13,881 | 39.15% | 13,928 | 27.76% | 12,784 |
| 3 year | 17.32% | 16,163 | 21.05% | 17,755 | 17.86% | 16,387 |
| 5 year | 18.73% | 23,615 | 22.32% | 27,412 | 18.90% | 23,784 |
| Since Inception | 15.95% | 66,067 | 15.81% | 65,062 | 14.37% | 55,428 |
| Inception Date | 01-11-2011 | |||||
On the Basis of the past performance, and its management who is giving a thrust on the companies with high growth , Sustainable Business Models , Low debt and market leaders , we can suggest to the person looking for the Retirement Planning provided he or she should have a long horizon, keep on investing in a discipline manner , have patience resulting into a big corpus.
Stay Invested .