Everyone knows that they need to plan for their retirement. Once you stop receiving your fixed income, you still need funds to get by from on a day to day basis. Most regular retirement planning focuses on providing for your regular daily needs. But what happens if you have big plans post-retirement. These plans could range from travelling abroad, buying a new home, or paying for a course to learn a new skill.
Plans like these require a substantial investment over and above your daily expenses. If you do want to follow your big dreams once you have more time on your hands, then the time to start saving is as soon as possible. It is important for women to educate themselves and find out the best ways to invest their money so that they can grow it sufficiently to fund their plans.
Here Are Some Options To Be Aware Of To Grow Your Wealth
Even if you have big plans, you must not overlook your basic needs. There are several retirement plans, including government and private schemes to choose from. To invest in a retirement fund, you need to calculate your current monthly expenses. Then decide how much you will need to save up to have the same kind of lifestyle after retirement. You will also need to account for inflation, so it is advisable to plan for more than you need in the present.
Fixed deposits are a safe way to put away money for the future. While fixed deposits give relatively low returns and are taxable, regularly putting money away will help you to build up funds. If for example, you want to take an international holiday after retirement, you can put some amount of money away in a fixed deposit. There is a lock-in period during which your money can stay untouched. If you keep renewing your deposit, then you will have a lump sum plus interest when you finally need the money. Don’t forget that inflation devalues the worth of your money. So, always save more than what you would need right now.
Mutual funds are another good way of growing your wealth. This type of investment takes advantage of the stock markets to earn interest for the investor. Mutual funds have several advantages including having higher interest rates than fixed deposits and adjusting for inflation. Certain types of funds also have tax-saving benefits. Talk to a financial advisor about using a Systematic Investment Plan (SIP) to invest in mutual funds so that you can build your corpus over time. These funds are subject to market risks, which is why it is a good idea to invest in them along with a retirement fund and fixed deposits.
Health insurance and accident insurance policies are good to have because they give you a financial buffer in case of an emergency. If you or a family member has to be hospitalised for some reason, a health insurance policy will help pay your bills without putting a dent in your savings. You don’t want to have to take money out of your retirement fund to pay for the treatment, so it is certainly a wise decision to have insurance.
Now that you know about the different way you can save money for big plans after retirement, you can make a plan that works well for you.