Many people focus on the present. But, the truth is that along with the present you need to take care of the future as well. If it comes to retirement, then it becomes even more important. The speed of time is very fast. If you have not yet thought for later retirement expenses, then it will be too late. The reason for this is that enough time is very important with good investment to prepare a big fund. No matter how much a person invests every month, if he does not have 15-20 years left for this investment, then he will not be able to prepare a big fund.
Take care of these things in retirement planning
The most important thing in retirement planning is to decide how big a fund you have to prepare for retirement expenses. In guessing this, you have to keep in mind that some expenses you will not have to do after retirement. However, some new expenses will increase. For example, after retirement, you will not be worried about children’s education fees. It is generally believed that his children’s studies are completed till the person retires. However, your expenses on medicines and medical facilities will increase.
Large funds are necessary for retirement expenses
The person does not know how many years will live after retirement. Therefore, for retirement, we must prepare such a big fund which is sufficient for the person’s expenses until the person survives. If you prepare a big fund, then you will have many options available to use it. Therefore, the most important thing is that the target to prepare a large fund for retirement expenses should be set.
Advantage of starting investment soon
A person can prepare a fund of Rs 3 lakh for retirement. It should be assumed that you can invest Rs 15000 every month with SIP in the Mutual Fund scheme. In such a situation, you have to invest for 26 years to prepare funds of Rs 3 crore from a monthly SIP of Rs 15,000. During this time you will invest a total of Rs 46,80,000. If you accept 12 per cent returns annually, then your investment will increase to Rs 3,22,66,681 in 26 years.
Large loss of starting late investment
Suppose there is another person who can invest more in the scheme of mutual funds from SIP but there are only 15 years left in his retirement. Then, despite investing more, it will be difficult for him to prepare a fund of Rs 3 lakh crore. If a person invests Rs 25,000 every month in the equity scheme of mutual funds from SIP to 12 per cent annual return will be only Rs 1,26,14,400 in 15. This suggests that the sooner you start investing in SIP, the more the chances of preparing your big fund.