“Retirement is the only time in your life when time no longer equals money.”
Thus says the philosopher in the financial markets. While this may be true, planning for finances in your post-retirement life goes a long way in easing the day when you can no longer work. To this end, investing in mutual funds (MFs) can be a way to ease your concerns about money in the sundown years.
“While you would have taken care of most of your financial goals by the time you hang up your boots, you need a retirement corpus that can outlast your life,” says Rahul Jain, president and head of personal wealth advisory at Edelweiss Wealth. Do remember that given the overall improvement in lifestyle and consequent increase in average life expectancy, your retired life could last well up to 20-25 years and even more.
Thus, while planning for your retirement or when you are no longer earning or working, ensure that your corpus is large enough to help you sail through this period without any hiccups.
“It’s very important for people to plan for their retirement or for their old age in personal finance along with their health. It doesn’t matter if you’re not interested in them because your personal finance and health is interested in you,” says Siddharth Kothari, chief investment strategist at Om Kothari Group.
Mutual funds can help you relax in your waning years. But there has to be some careful assessment and planning to be done.
“Retirement planning should be one of the most important priorities during our professional life,” says Pranjal Kamra, CEO of Finology. Many people sacrifice this attribute for the sake of their children’s education or marriage and often end up losing their financial independence during retirement.
MFs are investment tools that help you get exposure to different subasset classes which might help you gain good returns. Historical data also shows that equity has been the best performing asset class and has the potential for long-term wealth creation.
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