Plan Your Retirement Now

We always talk about our challenges of old age and seems bothered about it but within a fraction of seconds we forget it. The most probable reason why we forget it is because in our childhood we had not been taught about money. Most of us has an extreme emotional quotient and always seems to be dependent on our next generation and we justify it as well.
As the time are passing by dependency on next generation seems a bad option. It doesn’t mean that there should not be any expectations but we also has to keep in mind that expectations is the seed by which tree of dissatisfaction grows.

According to World Bank report life expectancy in India is about 69 years, although average life expectancy seems to be in between 70-80 years. Most of the people works till 60 and there are many working after 60 also. If we assume 20 years post retirement that will be a balance assumption.

Living a life with same standard of living along with various other expenses needs to be planned. We generally start working in our late 20s, so to plan for post-retirement we generally have 30-35 years. Now the thing is to consider is where we should invest; so that cost of inflation is also considered and our standard of life is also maintained. Saving in FDs, RDs, PPF are considered to be the safest heaven but if we are thinking for a duration of 30-35 years then equities are the best thing where our money should be. Investing in stocks can give a marvelous return in long term but selection of stock is the most difficult part. The first and foremost criteria for selection is, invest in those stocks whose business are expected to last for next two three decades. The number of stocks maximum should be ten because investing in too many stocks doesn’t make sense. The investment can be done on monthly, quarterly or yearly basis on a fix date in different shares with equal amount of money invested in each of them. The style seems to be boring and unexciting but believe me it can create ample amount of money in a long run after paying taxes and considering inflation as well.

The journey of investing will not be smooth it will be a bumpy ride but the destination when reached will give a satisfaction.

Happy Investing!!!