In India, it is not shocking to find people in their mid-40s or even early 50s who are yet to begin their retirement planning. Other bigger goals, such as building a house, financing a child’s education or wedding take priority over retirement planning. And while these goals are essential, it is necessary to remember that retirement planning is equally important. Proper financial planning means that you can meet all your goals comfortably at the right time.
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On the other hand, people depend solely on pension plans or provident funds to finance their retirement. These avenues offer moderate returns of around 7-8% per annum, which may not be enough to create a healthy retirement corpus. Moreover, the impact of inflation could eat up your savings in the future, leaving you with very little purchasing power. It is necessary to invest through online SIP investment to create a sufficient corpus.
Why Invest In SIP?
A Mutual Fund SIP or ‘Systematic Investment Plan’ is a simple and efficient way to create wealth for your future financial goals by making affordable, regular investments. Under the SIP mechanism, a fixed amount of money is deducted from your bank account on a specific date each month or quarter and automatically invested into a mutual fund scheme of your choice.
Online SIP investment is highly flexible, as it allows you to increase, decrease, or regularly step up your investment amount as per your objectives and convenience. The most significant advantage of mutual funds is that you can invest in the market without having to research what you should buy, keep, or sell. A fund manager builds a portfolio to provide the best possible returns. The ideal way to invest in mutual funds is through online SIP investment, which helps you invest in a regular and disciplined manner, whether the markets are rising or falling. Investment in such schemes helps you create wealth that is sufficient for peaceful retirement years.
How To Plan Your Retirement
Not all Indians plan for their retirement, says the data. There are many aspects associated with retirement planning, and it is never too early to begin. Decide how much income you require to live comfortably in your post-retirement years. Remember to take into account factors such as increased medical costs, expenses, and gifts for family. Preferably, choose to invest in schemes such as mutual funds, which can provide potentially higher returns in the long run.
Early online SIP investment will help you enjoy the benefits of compounding better. You can also calculate the returns of your online SIP investment through SIP calculators available. The main objective of financial planning is to ensure that the right amount of money is available at the right point in time in the future to achieve a stress-free retirement.
The five steps to plan your retirement are:
- Gathering your financial data such as details on your income, debt level, commitments, and so on
- Identifying your retirement goals
- Recognizing any financial issues or gaps between where you are now financially and where you want to be
- Preparing your financial plan will help you decide the right investments and will address your attitude to risk
- Implementing financial plan, review and revise it to ensure it stays up-to-date and relevant to the economy and changing lifestyle
A financial plan helps drive your decisions to a defined goal. It enables you to regulate how much to save today for your dream retirement. You can also take help from expert financial advisors such as FinEdge. These advisors devise a comprehensive financial plan to meet your life goals by using top-of-the-line technology, knowledge, and processes. So, make sure you begin online SIP investment in time to enjoy a peaceful retirement.