4 Tips to Plan your investments for a fulfilling retirement
Lay the foundation for healthy, long-term returns
Cash savings may seem safe, but growth opportunities in the long-term are very limited. Evaluate your risk appetite and embrace a certain level of capital risk to pursue investment options that generate long-term returns. This will give you financial breathing space to manage your expenses and enjoy your hobbies in retirement.
Be mindful of inflation
For your savings to grow, you must earn a rate of return after tax that is higher than the rate of inflation. Savings accounts may not be able to meet that need as they offer a low rate of interest. But with the right investments, you can certainly earn returns that outpace inflation and create wealth, allowing you to spend more freely.
Seek consistent income
Having a regular income is a good way to keep your finances healthy and moderate your spending. You may lack the same level of regular income in retirement, the way you did in your working life. What you can do instead is channel the returns from your investments into a steady flow of earnings. Focus on investments such as equities, bonds, or property that offer healthy, consistent returns.
Customise your investments to your needs
Your investments should be aligned with your post-retirement goals and activities. Look at the lifestyle and pursuits you would like to take up, and determine how much money you will need, and how frequently. This will help you determine the type of investments basis their tenure, risk and returns.
All the Mutual Fund investors have to go through a one-time KYC (Know Your Customers) process. Investor should deal only with the Registered Mutual Funds (RMF). For more info on KYC, RMF and procedure to lodge/redress any complaints, visit https://www.pgimindiamf.com/ieid.
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