It’s a pleasant place to be as most retirees end up without having funds to take care of themselves. Having enough money will allow you to lead a life of dignity and pursue your dreams. While having money is good, it is very important to safeguard it and ensure that you do not end up regretting your decisions. Below are a few tips to be aware of;
- A lot of money attracts unwanted attention. Especially from scammers trying you to sell instruments that have high commissions and long lock-ins. Stay away from instruments like traditional life insurance policies that have long lock-ins and high commissions.
- Liquidity – It is likely that you would want to travel, spend time with your loved ones and explore various interests that you having been postponing. Not to mention of medical costs. All these require sufficient cash at quick notice. It would be helpful to always maintain liquid assets to take care of these scenarios.
- Inflation – Inflation and Taxes continue till we are dead. While taxes reduce significantly when are incomes decrease during our retirement, inflation continues unabated. There is constant rinse in the cost of goods and not preparing for this can seriously hamper the standard of living during your golden years. For instance, if you start at Rs. 50,000/- of monthly expenses at 60 years, your monthly expenses are likely to touch Rs. 90,000/- when you touch 70 years at 6% inflation.
- Investments – While liquidity and safety are very important, choosing the right investment instruments are vital. Leaving your money in the bank account is a recipe for disaster as it doesn’t help you overcome inflation. At 3.5% return from savings bank account and inflation of 6%, your wealth is de-growing every year and soon enough it would become difficult even to meet basic expenses. An investment adviser will help you identify the ideal asset allocation among cash, debt, equity, real estate among others, to help you achieve goals in time.
Investment Advisers – In India, you find lot of self-proclaimed investment advisers. Insurance agents are behind commissions, stock brokers and mutual fund agents are behind brokerage and ponzi scammers are behind your money. They all have vested interests to sell you something. Only a SEBI Registered Investment Adviser is authorized to provide investment advisory services. A Flat Fee Advise Only SEBI Registered Investment Adviser will help you save tons of money and ensure that you are invested in instruments that are suitable for your profile.