Apart from saving and providing your family during your job tenure, it is equally important to simultaneously plan for your retirement.
Your main goal of retirement planning should be to receive income from various avenues be it pensions, PPFs etc. If planned wisely, you can get income in the form of rent, profits, dividend or even interest cutting your chances of opting for a personal loan or any loan, to meet your future requirements to nil. Provident Funds and Public Provident Funds are one of the best ways of investing into debt instruments and provide a guaranteed return post-retirement apart from tax benefits.
Your main aim should be looking for that investment that can guarantee you an inflation proof return or else you will be left covering only half your monetary requirements later. The best instruments for investing in such a scenario are Real estate and equity. Building your investment portfolio with a corpus of real estate will help you earn better since, the real estate prices are expected to throw off rent amounts 20-25 years later. If you have the direct knowledge of investing in stocks, it can guarantee you growth in the long term as well. Try not to waver your investments into equities as and when the market changes. Once you have made your investment, stick on to it as 10-15% slump in the market rate are likely to be balanced in the years to come. Do no time the market’s movement.
Avoid investing in ULIPs as it is not an inflation adjusted income generator in future. Try not to go for investing in FDs as well as your income is advised to be hedged in risk free assets especially through PF and PPF. Opting for a SIP (Systematic Investment Plan) is, boring, but suitable for those people who are not sure of investing directly into market equities where their chances of earning comparatively more are prevalent.