We all know how important it is to follow a systematic savings and investments procedure. But equally important is to pursue such a financial strategy that will help you combat inflation post-retirement.
It is obvious that with prices of the commodities rising by the day, there can be no fixed amount of expenses you can keep aside for your post-retirement needs. So having set aside a sound investment that will help you get over the inflation block is quite necessary.
If you do not want to trouble your post-retirement years by getting into a debt trap of a home loan or personal loan etc, park aside almost double your current monthly expenses.
If you are currently staying in your own hime and plan to buy a bigger one in future, set it as a goal and start investing early so that you need not depend on any loan. Also, once you shift to your new house you can rent in the old one. Assuming that there can be a probable rise in the real estate rates in future, it can be a good source of income for you.
But it is very important to opt such an investment plan that can guarantee you high returns in future. It is preferable to pick from a combination of large cap, mid cap and hybrid equity funds and not have more than five funds in total. In the debt space, PPF and EPF are good options. Any further exposure to debt can be built through hybrid equity schemes.
Get yourself and your family a health insurance. It is recommended that even if your employer covers you, opt for an individual cover as well.
If you have more than 1 PPF account, see to it that the combined savings in both the accounts do not exceed Rs. 70000 per year. Review your stock portfolio, if you are an investor in the stock markets. Otherwise, switching to mutual funds will be a better option.