With sound retirement planning, you can make the golden years of your life count. However, financial independence is the key to making the most of your life post-retirement. With that in mind, stated below are some of the best tips that you can use to make your retirement a grand success. Read on:
• Factor in LongevityAdvancements in medicine and an upgrade to a healthier lifestyle have been crucial for increasing life expectancy in today’s times. Therefore, considering the longevity factor is essential; that’s because you will have to ensure your assets live proportionately so that you can live a fulfilling life.
This is all the more applicable if you are young and healthy, leading an active lifestyle.
• Keep Debt Out of SightPiling on debt after retirement is never a wise idea, considering your sources of income will be limited. Try to clear all your debts before you reach the retirement age. Alternatively, have an actionable debt settlement plan ready for your retirement years.
For starters, get into the habit of clearing monthly credit card bills on time. The idea is to not let debt eat into funds that you have set aside for the more substantial expenses.
• Plan for Unexpected and Large PurchasesMake a mental projection of every large spending that can come up unanticipated during your retirement years. This includes goals like buying a new car, funding your child’s wedding or taking a long-stalled trip to an exotic destination. Don’t forget to factor in inflation when you do this exercise.
This way, you will get a clear idea of the more significant expenses, thereby helping you to cut down on certain purchases and set aside adequate funds for the larger ones.
• Be a Disciplined Long-Term InvestorOne of the more successful retirement tips is to have a long-term investment horizon and be a disciplined investor at the same time. A long-term horizon is essential as it betters the probability of maximizing your returns. More importantly, a long-term investment strategy is a cushion against bear markets and volatility.
Remember, discipline is the key.
• Buy Health InsuranceWith increasing age, taking care of one’s health assumes primacy. Importantly, healthcare constitutes a significant chunk of expenses for retirees. A medical contingency can deplete your retirement corpus thick and fast; therefore, to prevent it from happening, it is advised you invest in a health insurance policy that will act as a safeguard against sudden hospitalization and other health-related expenses.
Besides, you should also avail a critical illness plan as a regular health policy may not provide adequate coverage in case you are afflicted with a critical illness.
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The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.
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