About to turn 60? Soon you will have to bid a goodbye to your desk, your colleagues and everything else related to your work and say hello to the retired life. Besides the obvious feeling of emptiness leaving behind years of carefully nurtured work life which you had lived to the hilt, you also feel a sudden sense of fear. Are your investments enough to tide you through the rest of your life? Point to ponder upon certainly!
You have saved hard to amass the money so you can surely not risk your capital income. But yes, you can try and invest in the right avenues to generate a substantial income which to cater to your regular and luxurious requirements. Check out the best investment plan for senior citizens in India and the chief principles to adhere to build up a perfect retirement portfolio.
- Plan and calculate your expenditure
As long as you are able to get your calculations right each month read you manage to pay off all your bills with ease, and spare some more for unforeseen expenditures you are sorted.
More specifically you get to restrict your drawdown to no more than 4% of the total saved money in your retirement kitty and you keep your expenditure graph in a linear line ( adjusting the rate of inflation ) you will be good to go for the next 30 years or so. Two points to be mindful here are the safety of capital and more income generation.
- Build a portfolio/ Review your existing portfolio
The most important thing to review is your current portfolio and find out how-how balanced, is it? How much are you willing to invest? While some people stick to age-old and trusted schemes as Senior citizen’s saving scheme and Post office investment schemes others are bolder with their choices and choose promising Mutual funds. As they say, to each his own.
- Alternative investments
If you retire at 60 most of your financial advisors will advise you to devote half of your assets to sensible investments and stocks and divide the rest to a mixture of bonds and cash.
If you are skeptical of devoting such a large chunk of your earnings to investments such as these, you have to consider blending your risk-taking prowess and caution and make a difference to your income. You can keep changing the percentage as you go and settle for something like 37% of your assets in stocks and alternative investments.
- Factor in rainy days
It is always wise to set aside some ready cash that is probably the best investment advice for senior citizens because this is for the future emergency situation that will shield you from unexpected expenditures.
Find out what works for you and what does not, investments are not individual solutions rather they work in tandem to cater to your financial requirements, so make these a part of a cohesive plan and implement them to make a full-proof investment scheme.
Sixty plus, as an organization, which helps retired persons build their financial dreams and help them realize it. They help retirees focus on the right investment options so that they can generate income without depleting their main capital, in other words, keeps their finances in real good shape.