In life, people often have a range of financial aspirations from buying a house and a car to providing for their children’s education and enjoying lavish vacations. Amidst these various goals, managing a retirement corpus often gets relegated to the backburner, as if it can wait until the later stages of life. However, it is vital to recognise that prioritising retirement planning should not be delayed. Neglecting this aspect can have serious consequences for one’s financial security. Therefore, it is imperative to give due importance to retirement and take proactive measures to safeguard one’s financial future.
Developing a well-thought-out retirement strategy is essential to ensure a stress-free and comfortable life during the golden years. With longer life expectancies and the decline of traditional pension systems, individuals must carefully build and manage their retirement corpus to generate income and meet their needs. Retirement is a phase where fixed incomes like salaries cease to exist, and a reliable cash flow becomes paramount to cover expenses in the later years. The misconception that a steady salary is necessary during retirement should be dispelled.
Instead, what one truly requires is a dependable income stream that can keep pace with inflation. The solution lies in designing an investment portfolio that prioritises deploying a corpus for income generation in the retired years. Fortunately, there are financial instruments available that enable you to maintain your pre-retirement lifestyle by continuing to earn and spend from your savings. These instruments offer a monthly income derived from the investments made throughout your life. Opting for these instruments is a wiser choice compared to liquidating all your savings and consolidating funds as a lump sum.
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
How To Invest In An Ageing Bull Market
Bull rallies (periods when stock prices rise) and bear declines (periods when stock prices fall) are natural parts of stock market cycles, but they don't follow a fixed timeline.
Should You Entrust All Your Money To A Single AMC?
If you are a market participant, you have probably heard the quote 'don't put all your eggs in one basket', which suggests diversification. Investors often focus on diversifying across categories like large-cap, mid-cap and small-cap, but they may unintentionally overlook diversification across different AMCs. The question arises: is AMC-wise diversification really necessary? Rakesh Deshmukh takes a closer look at this scenario
Wild Swings Engulf Global Equities
U.S. stock markets experienced significant volatility. An early-week rally pushed the markets to new highs, but this momentum faded, primarily due to weaknesses in the tech sector. The major indices had a mixed finish with, S&P 500 and Nasdaq closed lower, while the Dow recorded a notable gain.
U.S. Elections and China's Economy Hamper Commodities
Commodity markets experienced selling pressure in the last fortnight, driven by uncertainties surrounding the upcoming U.S. presidential elections, concerns about the Chinese economy, and increased agricultural production in Brazil.
Wealth Building For Retirement Through Mutual Funds
Retirement is one of the most crucial and lifechanging phases. It marks a period where maintaining your lifestyle becomes paramount even though your regular income stops.
Mastering Investment with Information Ratio
Information Ratio helps in navigating the complexities of the investment landscape by assessing an active fund manager's performance. And though it has its limitations, it remains an essential part of the finance industry. The article explains what Information Ratio is and how investors can use it as another tool
Plan To Be Financially Independent
Each of us aspires to be financially independent as it ensures having enough resources to be self-sufficient and control our finances.
❝Technology is the new game-changer"
With a new breed of young investors entering the financial markets, it is the use of technology that is increasingly playing a major role in how investments are done and tracked. Anand Radhakrishnan, Managing Director, Sundaram Mutual Fund, shares his opinion about how this factor is turning into a significant tool and how it will shape the strategies of his company
What If Donald Trumps?
The potential election of Donald Trump as president in the U.S. carries significant implications for the Indian equity market. It could lead to changes in the global trade dynamics, in particular affecting the Indian IT sector while also raising inflation levels and leading to yet another revision in the visa programme for Indians who want to work in the US. The article takes a closer look at what may lie in store
Sectoral Gains Make A Mark
Benchmark indices continued their uptrend, reaching new record highs, although the pace has slowed as the broader markets faced selling pressures
