Does your financial plan support your post financial requirements?

By | April 10, 2011

Once you have fulfilled all your responsibilities towards your family like purchased a house, got your children married off, successfully been able to repay your debts as in a home loan or a personal loan etc.

But even if you managed to build a corpus of about 4-5 crore, by the age of 62,  your corpus starts to reach a break even point when you start withdrawing your savings for personal expenses. But it is highly recommended that your corpus should support you till you turn 80 years of age.

Investment Planning:

Assuming that you had started investing early and took advantage of maximum exposure towards equities, it is highly recommended that, you should now gradually lower your exposure and transfer your funds into debt instruments.

Once you near your retirement age, it is advised that you transfer your funds out of risk products and stash them into sweep in deposits, fixed maturity plans and hybrid equity funds.

It is the best time for you to look out for mutual funds rather than direct stocks. Have two to three debt class assets, one hybrid fund and another two in equity basket. Use SIPs for the same.

Insurance:

Try increasing your life and medical cover by this time. Include your spouse and children as your dependents in your health cover as well.

Make sure that you have a proper financial strategy. Do keep reviewing the same so that they don’t become a stumbling block to achieve your financial goals over time.

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