Statistics reveal, for young Indians, spendings are much more than the savings. It also highlights that more than 90% don 't start planning for retirement in their first 5 service year. Even by the 10th year, less than 20% would mind sketching out a retirement plan.
One of the major reasons is the low income of the young earners in India. This is nothing but a fallacy. …show more content…
Take 100 and subtract your age to come up with the accurate stock allocation for you. Suppose, if you are in your 60s, then you should invest 60 in bonds and 40 in stocks. But this rule out advances in longevity and the need for greater growth at later ages.
After Retirement
People think their asset allocation settlements are done and now it is the time to retire and retreat. But that is hardly true. Even after retirement you can plan for your own house, own car and even go for a foreign trip with your wife.
A common scenario in an Indian middle class family is where the man spends more than half of his life running after money for the betterment of his kids and family, when the ultimate destination of his wife is the kitchen cooking for the kids. Unfortunately, most of these kids drop the curtain by throwing their parents to an unknown retirement home. But it 's you, who can create the difference! This is the golden time to plan smarter and proceed.
To stay stable in the financial market, you have to stay smart. We recommend a bucket approach, where you can keep a few years of needed income aside for short duration bonds and invest the rest for the growth. You can replenish your expense bucket when markets are on a rise, and ride out the storm with your stored income when the market suffers