What’s your retirement game-plan? Wednesday, Mar 27, 2019
"It's too early! There's time..."
"I'll do it later."
"It's too complicated!"
"I don't have the time now!"
These are some of the very few excuses people have when entering in to their 30s. Most of the time people don’t realise the importance of saving and investing that they push it to the back burner and worry about saving up for their retirement kitty for later. The sorry news, however, is that to have that school of thought is, quite honestly, not the right approach. Saving and investing now for your retirement goal in your career is essential in your 30s. Here are a few simple solutions to get you started and on track to saving up for your golden years.
Game-plan 1: Outline/Plan/Calculate Your Retirement Dream
It is essential that you start estimating your retirement corpus requirement with a Retirement Calculator. Say if you’re married, start by sharing your future plans with your spouse together by asking each other how much of the present income is required to maintain a comfortable life during retirement? Are there any plans to travel post retirement to see the world? Are there any hobbies to achieve on entering 60’s? Figure out what is lightening your wallet and by how much – your costs. Find out what your current expenses are and subsequently find out what your expenses could amount to by the time you retire, assuming a realistic rate of inflation. Once you know your answer, the Retirement Calculator on our site could serve as a rough guide as to what this figure can be, taking into account various future expenses. At times you may find that your savings are less in which case you may have to tweak your retirement goals.
Game-plan 2: Increase Your Savings through SIPs
Systematic Investment Plan (SIP) could be your key to a happy retirement life. One of the preferred ways of investing in a mutual fund is through a SIP. In SIP, you can invest every month with a minimum amount of Rs. 500. While SIP makes you a disciplined investor, it also gives your money professional fund management skills which helps you achieve your goal of retirement planning. Let’s say you save Rs. 2,083/- a month on a yearly income of Rs. 5,00,000/-. This means that you’re putting away 5% of income towards retirement. Get into high gear and increase that amount to 10-12% every month to save extra. To own a substantial nest egg post retirement, the Quantum Multi Asset Fund (QMAF) also gives you the opportunity to invest through Systematic Investment Plan (SIP) and allows you to start diversifying your portfolio with an amount as low as Rs. 500. SIP is a means of investing in a disciplined manner, irrespective of the state of the market. Your future self will thank you later as you diligently take effort to increase your savings in the present moment.
Game-plan 3: Compounding - The Secret Weapon
The secret weapon that one needs to let their money grow over time is the power of compounding. In simpler words, it is basically earning interest on interest - a snowball effect that could effectively increase your savings much more over time. One does not need to do anything other than watch their money grow. Thus, the earlier you begin saving, you get more time on your hands thereby letting compounding work for you in the long-run.
Once you have your game-plan in place, you will find yourself in a much better position when you reach your retirement stage of life thus achieving your financial goal of saving up for retirement through successful wealth creation by investing as soon as possible. Please take guidance from your financial advisor before taking any investment related decisions.
|Name of the Scheme||This product is suitable for investors who are seeking*||Riskometer|
|Quantum Multi Asset Fund|
(An Open Ended Fund of Funds Scheme Investing in schemes of Quantum Mutual Fund)
|• Long term capital appreciation and current income |
• Investments in portfolio of schemes of Quantum Mutual Fund whose underlying investments are in equity, debt / money market instruments and gold
Investors understand that their principal will be at Moderately High Risk
Disclaimer, Statutory Details & Risk Factors:
The views expressed here in this article / video are for general information and reading purpose only and do not constitute any guidelines and recommendations on any course of action to be followed by the reader. Quantum AMC / Quantum Mutual Fund is not guaranteeing / offering / communicating any indicative yield on investments made in the scheme(s). The views are not meant to serve as a professional guide / investment advice / intended to be an offer or solicitation for the purchase or sale of any financial product or instrument or mutual fund units for the reader. The article has been prepared on the basis of publicly available information, internally developed data and other sources believed to be reliable. Whilst no action has been solicited based upon the information provided herein, due care has been taken to ensure that the facts are accurate and views given are fair and reasonable as on date. Readers of this article should rely on information/data arising out of their own investigations and advised to seek independent professional advice and arrive at an informed decision before making any investments.
Mutual fund investments are subject to market risks read all scheme related documents carefully.
Please visit – www.QuantumMF.com to read scheme specific risk factors. Investors in the Scheme(s) are not being offered a guaranteed or assured rate of return and there can be no assurance that the schemes objective will be achieved and the NAV of the scheme(s) may go up and down depending upon the factors and forces affecting securities market. Investment in mutual fund units involves investment risk such as trading volumes, settlement risk, liquidity risk, default risk including possible loss of capital. Past performance of the sponsor / AMC / Mutual Fund does not indicate the future performance of the Scheme(s). Statutory Details: Quantum Mutual Fund (the Fund) has been constituted as a Trust under the Indian Trusts Act, 1882. Sponsor: Quantum Advisors Private Limited. (liability of Sponsor limited to Rs. 1,00,000/-) Trustee: Quantum Trustee Company Private Limited. Investment Manager: Quantum Asset Management Company Private Limited. The Sponsor, Trustee and Investment Manager are incorporated under the Companies Act, 1956.