You can start invest in equities for long period. It will help you to make large corpus for your retirement. But you want to have enough wealth to enjoy financial independence. You can see Best Term Insurance plan. In every situation retirement plan takes care of your financial goals. Here is how you can go about retirement planning. Hence, check Best investment plan for monthly income.
Start Systematic Investment Plan (SIP)
You must invest regular through mutual fund SIPs. It will help you add good amount of wealth for your retirement. This will help you to tackle market insecurity. It will give average amount to your investment cost during market rise and falls.
Mutual fund Head Manish Kothari Head says equities can be volatile in short term. SIPs equity mutual fund is most suitable option for retail investors. But, you can create your retirement corpus. And by investing in equities over period of time returns will beat increase by margin. Hence, it helps you to gather corpus to live your retirement life in peace.
Thus, if you are near retirement you must shift from equity mutual funds to debt funds through STP route. You must always avoid market time for enter into equity markets same for exit also. And you must start Systematic transfer plan (STP) process for your retirement age.
Term Insurance Plan (TIP)
If you invest regular in SIP you will have great corpus on retirement. But SIP alone may not be enough in case of emergency. Head life insurance Ankur Agarwal says that earn person depend on financial help. To buy house or car for regular needs. In case if you meet with an accident that affects ability to work and earn.
Thus it will affect your ability to pay loan on your open assets. Most of your investments date will go to clear off liability rather than to keep aside for future use. This is where Term Insurance Plan can help. And see Key features of MIP mutual funds
Term Insurance helps you to avail high sum assured at low premium. And this plan pays lump sum benefit in case of premature death or disability. Thus, it ensures family financial is take care even in one’s absence.
But Term insurance can buy at any age. And this is your first life insurance plan. So it is better if you buy in younger age. For example, Rs 1 crore term plan cover you until you are 55 age and it will cost your Rs 6,000 per annum at age of 25. At 35 age it will cost you around Rs 8,000 per annum.
Before planning for retirement you must take term plan by little amount. And secure your long term problem includes funds made towards retirement plan. But you can check Term Insurance Plan comparison.
You can Start Monthly Income Plan (MIP)
You have to review your financial plan at time of retirement. And find out your asset allocation based on your financial goal and time. Thus you can invest in MIPs. After collect funds through SIP. You can start invest in MIP for second income by taking dividend option.
MIPs are debt mutual fund schemes. You can invest in small part of funds around 15-25 % in equities for capital appreciation. And from remaining it offer regular income through dividend payouts. MIPs returns are not guarantee because it may fluctuate from 8-10%. Thus small part of equity is purpose to get inflation adjust return.
But it is also important to invest some amount in schemes. It can give your guarantee returns. Like Fixed Deposit or Senior Citizen Saving Scheme (SCSS). To get second income every month. Not only this you can also opt for System Withdrawal Plan.
To care of your daily expenditures after retirement you must opt for SWP options in debt funds. This option works opposite to SIP’s. It will be deduct set amount from mutual funds on fixed dates and credited to bank account. This will make cash flow for daily needs.
Thus rest of amount will add in corpus. But will continue to earn high returns than bank deposits or fixed income. After retirement you have financial freedom. You need to plan your investments well to get good monthly income. For more details view Start an SIP in mutual fund
Finally, check best monthly income plan post office. But also see monthly investment plan with high returns. And check fixed deposit monthly income plan. So, you need to see systematic investment plan comparison. Thus check how to start SIP investment.