Flout these retirement rules and become a trailblazer
Retirement is a phase everyone has to encounter. Prior to retirement, many fears and concerns loom large over us. These concerns include health-related issues, vulnerability to crime and the fear of staying alone. Another fear is whether one will be able to sustain the same kind of lifestyle after retirement and this drives most people to follow the standard norms that other retirees choose.
If retirement isn’t planned prudently, one may have to borrow money from children or relatives or apply for a loan against property to tide over the financial constraints faced by them. Some people refuse to retire and also take up a job or begin consultancy services after retirement to keep the finances flowing. Instead of taking the traditional path, try flouting these common rules to come out a winner.
Life Insurance: Most people treat life insurance as a primary investment vehicle and invest large sums into it, hoping it will work like a hedge against growing inflation rates and provide during their retirement. Unfortunately, life insurance policies do neither. It can provide for your dependents after death but isn’t a great investment for the long term. Mutual funds are a much better option to beat inflation and should be preferred instead of life insurance.
PPF: Public Provident Fund or PPF as it is popularly known, has been a favourite retirement tool for most of us for a long time. Unfortunately, interest rates have been steadily dropping and due to this PPF has lost some of its earlier sheens. It is mandatory to lock-in your money for 15 years after which it can be renewed for blocks of 5 years each. Instead, invest your money in tax- saving mutual funds (ELSS) or select equity schemes to get better rates of interest during your retirement years.
Health Insurance: This is a wonderful way of providing for hospitalization charges and other medical expenses, provided it has been purchased at an early age. Buying health insurance at an advanced age can prove to be an extremely costly affair as health insurance premiums grow with age. Instead of buying health insurance after retirement, invest that amount in a SIP (Systematic Investment Plan) and use it for medical emergencies.
Living poor to die rich: Lot of retirees make sure all their money is stashed away in fixed deposits for future use. They live a frugal life in the present worrying about the future which doesn’t allow them to enjoy their lives. Instead of depriving yourself of comforts and leisure, you should live in the present and make the most of today.
Most retirees and senior citizens are past personal loan eligibility and cannot avail them, Hence, making a prudent choice earlier in life is important so that life after retirement is filled with joy and happiness.
If retirement isn’t planned prudently, one may have to borrow money from children or relatives or apply for a loan against property to tide over the financial constraints faced by them. Some people refuse to retire and also take up a job or begin consultancy services after retirement to keep the finances flowing. Instead of taking the traditional path, try flouting these common rules to come out a winner.
Life Insurance: Most people treat life insurance as a primary investment vehicle and invest large sums into it, hoping it will work like a hedge against growing inflation rates and provide during their retirement. Unfortunately, life insurance policies do neither. It can provide for your dependents after death but isn’t a great investment for the long term. Mutual funds are a much better option to beat inflation and should be preferred instead of life insurance.
PPF: Public Provident Fund or PPF as it is popularly known, has been a favourite retirement tool for most of us for a long time. Unfortunately, interest rates have been steadily dropping and due to this PPF has lost some of its earlier sheens. It is mandatory to lock-in your money for 15 years after which it can be renewed for blocks of 5 years each. Instead, invest your money in tax- saving mutual funds (ELSS) or select equity schemes to get better rates of interest during your retirement years.
Health Insurance: This is a wonderful way of providing for hospitalization charges and other medical expenses, provided it has been purchased at an early age. Buying health insurance at an advanced age can prove to be an extremely costly affair as health insurance premiums grow with age. Instead of buying health insurance after retirement, invest that amount in a SIP (Systematic Investment Plan) and use it for medical emergencies.
Living poor to die rich: Lot of retirees make sure all their money is stashed away in fixed deposits for future use. They live a frugal life in the present worrying about the future which doesn’t allow them to enjoy their lives. Instead of depriving yourself of comforts and leisure, you should live in the present and make the most of today.
Most retirees and senior citizens are past personal loan eligibility and cannot avail them, Hence, making a prudent choice earlier in life is important so that life after retirement is filled with joy and happiness.
Comments
Post a Comment