Finished your studies and just settling in a new job? Finished repaying your education loan? This has to be the time to enjoy. Paying back the education loan was a heavy burden on your back. Now this burden is gone. You are young and the World is at your feet…. Is this the time to bring up a boring topic like retirement…Worse you are just 30. Should you be even thinking of retirement?
Remember: Life is short. Your Retirement Is Not As Far As You Think.
You are just 30 years of age. It is highly unlikely that you would be thinking of saving up for retirement at this age. Where would your money go? Repaying your home loan (if you have availed one), collecting money for your children’s education and taking care of the health expenses of your parents. This would be your main goal. Why would you care for retirement which is at 60?
The earlier you start your retirement planning, more is the money (corpus) you will have at retirement. It is never too early to do your retirement planning. Start saving money for retirement, when you are in your 30’s. This is the age when you must take risks in your investment. Invest in a good equity diversified mutual fund through an SIP. Systematic Investment Plan popularly known as SIP, is a method of investing in equity diversified mutual funds, where you invest small sums of money regularly (say each month), to purchase units of the equity diversified mutual fund. When stock markets are high, you will be able to purchase lesser number of units of the equity diversified mutual fund, as its NAV (Net Asset Value) will be high. When stock markets are low, you will be able to purchase more number of units of the equity diversified mutual fund, as its NAV (Net Asset Value) will be low.
Your investment in equity will easily beat inflation and at the time of retirement you will have a lot of money, which will even surprise you.
This is the time you must think of repaying your home loan. The home loan EMI’s are so high and so frequent. Where is the money to save for retirement? You first thought…Lets stop that SIP, its eating up all your money. This is the time you must increase your allocation (money you invest), towards equity diversified mutual funds.
Never stop the SIP you have started in your 30’s, to save for retirement. You want to travel abroad after retirement…you need this money.
Your home loan has been paid off. Your children are in college and will soon be working. You suddenly find you have a lot of money. You want to spend all this extra money on a lavish lifestyle. This is the time you need to invest all this extra money for your retired years. This might very well be your last big opportunity to collect money for retirement. Continue your SIP Plan. Invest the excess money in a good debt fund.
You need to save a lot of money in your 50’s for your retirement. You might have a health insurance plan to cover your hospitalization expenses for yourself and spouse. But what about your day to day medicines? Cost of medicenes for you and your spouse could be very high in retired years. You have to pay this from your own pocket. You need to prepare for these expenses much before retirement.
You are now retired. This is the time you can afford to enjoy. You have planned for your retirement when you were just 30. “It doesn’t take age to retire, it takes money”.
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