With improving living conditions and advancements in medical science, there has been a considerable increase in the life expectancy of Indians. This adds more years to your retired life. So, it’s best to begin preparing early, so that your golden years can be hassle-free and full of joy. Being conscious of retirement planning helps make the right choices. For instance, when choosing between debt funds and short term funds or between first buying a house or a car. Here are some tips to ensure a happy and fulfilling retirement.
Focus on Wealth Creation
Retirement can be exciting. You don’t need to work all day or travel during peak office hours. There’ll be a lot of time on your hands and you can do so much with it. It would be really frustrating to be constrained because of money. Having enough money helps you fulfill your desires and dreams. While it’s a good idea to begin saving, this may not lead to wealth creation. So, check all the options available, including debt mutual funds. Find out their performance and learn as much as you can about investing.
For instance, many people choose mutual funds in the debt category. This is because debt mutual funds or fixed income mutual funds invest mainly in corporate debentures and government bonds and, therefore, have lower risk than market-linked investments. Make your decision regarding long-term and short-term funds depending on your financial goals and other investments.
Clear Your Debts
Focus on paying off your loans. Not only does this give you more peace of mind, but the interest component is also much lower when you pay off loans faster. Moreover, you will have more money to invest. The last thing you want is to entire your retired life with a loan on your hands. The first loan to repay is credit card dues and then any home, car and personal loans that you may have taken. It’s only after this is done that you should consider creating an investment portfolio with equity and debt mutual funds.
Think About Your Health
Healthcare is among the biggest financial burdens for retirees. Having adequate health insurance is a vital part of your retirement planning. It’s important to get health insurance early so that the premiums you pay are lower even for a high cover. Apart from this, ensure that you eat healthily, drink enough water and exercise regularly. Try to maintain a healthy weight. Following the right diet and exercise routine can lower risks of cardiovascular diseases and diabetes as well as delay mental ailments like dementia.
Maintain Relationships
When a person retires, he loses his close network of colleagues and associates. This can lead to people feeling lonely and even depressed. Having regular interactions with your grandchildren, children, and neighbors can help you stay happy and healthy. In fact, studies have even found that individuals who receive support from their grandchildren enjoy a much better mental state.
Travel
Retirement is also the time to make all your travel dreams a reality. Make a list of all the places you wish to visit, budget for these and include them in your financial goals. With the right investment portfolio of fixed income mutual funds and other instruments as well as focusing on your long-term health and social interactions, it’s possible to lead a happy retired life.
What did we learn?
