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Post-Retirement Planning: Why it’s important to plan for a post-retirement period.Experts convey the importance of 3-bucket strategy, investment tools

Planning your financial goals while you work is important, but planning your retirement is just as important. The average person retires at age 60 and has a longer life expectancy, but to live a comfortable life, you need to plan for the next 20 to 30 years in advance.

Pratibha Girish, founder of Finwise Personal Finance Solutions, gives Zee Business’s Swati Raina important tips on retirement financial planning.

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At least how many years of financial planning will ensure a comfortable retirement? What is a 3-bucket strategy? Also, how to invest in equity funds and debt funds, and in which category do you invest?

She emphasized the common misconception among older people that they would play it absolutely safely in terms of risk-free investment. On the other hand, longevity can lead to financial problems if you continue to have the idea of ​​sustaining with interest income alone. She said this was the biggest hurdle.

In general, people do not have enough corpora to maintain their lifestyle with these safe appliances for the next 20-30 years.

Greek supports a bucket strategy to lead a comfortable life after retirement.

There is a 3-bucket strategy for retirement.

Bucket 1 – Cost for the next 4 years. Investment options include the Elderly Savings Program (SCCC). Pradhan Mantri Vaya Vandana Yojana (PMVVY); Systematic Withdrawal Plan (SWP).
Bucket 2 – Cost for 5-8 years. Investment options such as hybrid funds and conservative equity.
Bucket 3-8 years later cost. Investment options include flexicap funds, large cap funds and middle cap funds.

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She said that if higher risk is needed, a third bucket strategy should be applied. However, there are some risks associated with this strategy, she added. The investment must be made with due diligence and research, she added, adding that risk without due diligence does not yield high returns.

Elderly Savings Scheme, SCCC, Pradhan Mantri Vaya Vandana Yojana, PMVVY, Systematic Withdrawal Plan, SWP, Hybrid Fund, Conservative Equity, Flexi Cap Fund, Large Cap Fund, Medium Cap Fund



Post-Retirement Planning: Why it's important to plan for a post-retirement period.Experts convey the importance of 3-bucket strategy, investment tools

Source link Post-Retirement Planning: Why it's important to plan for a post-retirement period.Experts convey the importance of 3-bucket strategy, investment tools

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