Curating A Happy Retirement
For most of us, retirement is something we don’t think about as much. More so in people who are in their 20s and 30s and have just started their businesses or jobs. We just don’t like to think about retirement. However, think about it once more. We all know that retirement is inevitable. Either it is a compulsion as one crosses employable age. Or for some people who just choose to retire.
But fact remains, retirement is a reality. We are moving towards a time when we want to lead an active and free life without having to worry about incomes. The work is optional. How can one have such a life where you don’t have to go to work everyday and still not have to worry about the incomes. That is Ideal Retirement. This is possible when one achieves Financial Freedom.
It all boils down to the fact that how can one have Financial Freedom. One needs to save and invest wisely when there is an income available and in turn create wealth that can sustain retirement. One needs to invest wisely to create a retirement kitty. Is that enough? May be not. The retirement kitty also needs to be invested wisely so it takes care of the retirement. Because no one knows how long one needs it.
Mutual funds gives you a wide range of option to invest for a retirement or any other life goal. To build a retirement fund over a long period of time, blend of equity and debt mutual funds are definitely a great option. Investing in equity funds through systematic route is very good way to build wealth in long term.
Systematic investments also take care of the volatility in equities and gives an opportunity to earn superior returns. Systematic investments are also a great tool for building a large corpus by investing small amounts over a period of time. There are many other benefits that follow when one chooses a mutual fund, either debt or equity. The major advantages are:
1. These funds are managed by experts.
2. These funds have better tax efficiency.
3. One can start with very less money.
4. The process and documentation are simple.
5. Liquidity is available to the investor.
In the end, investing is an art. One needs to build it. One needs to be patient about it. One needs to review it once in a while. And in case of any doubt, one must speak to an advisor, who can help negotiate the investor through rough patches of the investing journey.
-- Dipankar Pattnaik/Bhubaneshwar
(The writer is a Post Graduate in Finance. He is the CEO of Services 1up, a firm that is engaged in Investment Management for more than 15 years.)