Planning for retirement in your 50s? Well, it is never too late to start.
If you haven’t started building your retirement corpus by the time you are 50, one thing you know is that you have less than 15 years to ensure your heydays are better taken care of.
Calculate how much you’d need – The first step is to know what you need and where you stand. Use various online calculators and take a honest stock of your financial condition before you chalk out your future financial path.
Save tight – The first, most basic and easiest step is that you start saving now. By saving, we don’t mean the trimmings you are left with each month, but at least 25% of your monthly salary.
Invest right – Saving tight is not enough, it is important to invest your money in high return instruments so that you get the maximum returns in minimum time. You must also understand that investing in equity involves risks and the returns are much more on a long term horizon of up to 10 years.
Systematic transfer to debt funds – While you may take more risks in your 50s as your mortgage payments would almost be getting over and your children are settled…once you hit 60, it is time to systematically transfer your investments to less risky instruments.
Don’t dig in to your already built corpus – if you are a salaried individual, more chances are that you are in your best earning years now and have much more to spend as well as save. You would also have some savings in your EPF which you must not touch until you retire. It is quite a temptation to use up what you already have, but 50s is the age to build up on your existing assets.
Use a Financial Advisor – A financial advisor, if chosen wisely, can be your best friend on the path of wealth creation. He can advise you to avoid pitfalls and take investment decisions based on your age, stage and goals in life.
Remember, it is never too late to start. Contact Dr. Celso at NaveMarg for unconventional financial advice and grow richer, now!