When you enter the retirement phase of your life, the first thing that you will realise is that you do not have a regular income from your job anymore. At this stage, you will have to meet all your lifestyle and emergency expenses. Using the funds you have saved all through your employment years.
Though you may be getting income from other sources like rent on a property you own. Planning your finances is important to ensure that your golden years as are comfortable as possible. So, while you are working, dedicate sufficient funds from your monthly income. This will help you to create a substantial corpus that will help you finance your retirement.
Look at important reasons why having a retirement investment plan is important.
It Helps You Put Your Savings to Good Use and Save on Taxes
Having a detailed investment plan for your retirement means that you will get more organised about preserving and increasing your wealth. This will help you curb current expenses and be more aware of the need to save for the future. The key to a good retirement plan is to choose from high-earning investment schemes and safe options too.
For example, if you already have a nest of savings. You can make the best use of them by investing in a mix of options such as fixed deposits, equity, and mutual funds. Divide your savings and invest in these devices based on your risk appetite. Be sure to lock-in your investments for at least 3 years for increased earnings. Continue reinvesting until you need to access the funds after retirement. In the meantime, you can get tax deduction benefits on these high-interest yielding savings plans.
It Helps You Fund Your Lifestyle Post Retirement
Your responsibilities and financial liabilities are not going to alter drastically post retirement. Thus, including them in your retirement plan and investing to fulfil these needs post retirement. This will help you build a substantial corpus through your regular income. These needs may be finances for daily living, funds to pay monthly rent or your home loan EMIs, money for travel or to pursue your passions, or funds to educate your grandchildren or take care of regular medical needs.
One of the schemes you can choose is to invest in a cumulative FD for years until your retirement. You can use the maturity funds post retirement to reinvest in a non-cumulative FD. This will allow you to access the high interest payout on your invested sum regularly. You can use this fund for your daily needs. Choose Bajaj Finance Fixed Deposits as an option to allow your invested sum to gain high interest of up to 8.20% through the entire tenor.
It Helps You Create a Reserve For Emergency Expenses
Creating an investment plan allows you to choose the right options that will come handy when you face emergencies post retirement. Whether it is a sudden hospitalisation for you or your spouse, a wedding in the family. You can then use these funds to meet any such urgent requirements.
One way that you can plan to meet such needs is by parking some cash in your savings account to build an emergency corpus. Alternatively, you can plan on starting a senior citizen FD using your gratuity money. FDs are one of the safest and most secured investment options for you as a retired person.
It Helps You Beat Inflation
Rather than keeping your savings in a savings or current account, creating an investment plan for retirement. A vest Plan helps you invest in options that will offer earnings to beat inflation. The best by choosing instruments that offer high gains to maximise earnings in the long term. This way you can be sure that the money you invest grows over time beating the reducing value of money over time. Mutual funds, stocks, commodities, and currencies are good investment options for you as a retired person.
It Helps You Lead a Financially Independent Life
While planning your retirement, it is important to consider the fact that you need to be financially independent during your retirement years even in the absence of a regular salary. Remember that during this time, borrowing a high-interest loan to secure urgent cash would only be a burden. So, adjust your investment portfolio in such a way that it allows you to stay financially secure so you do not have to rely on your children once you retire.
A strong retirement investment plan will allow you to maintain the same lifestyle that you have been enjoying now, in your golden years too.
Why Is Accounting Important for Business?
• Financial Accounting
• Administrative Accounting
Importance of Accounting
- Thanks to accounts that we can know at any time how many exact amounts we owe in business and which ones are owed to us.
- Allow differentiating the expenses created by the owners over those generated by the business itself.
- Its study and application alert us of the general expenses and the investments we made for business development.
- It helps us to know what is the production cost of a particular service or product allow us to find out the price for which it should be sold.
- At any time we can know the money we are earning, or losing.
- Thanks to the balance sheet and the income statement, that we can easily find out what our current financial situation is and how much progress we want to make for business development.
Why You Should Opt For SBI Flexipay Home Loan?
Without a doubt, State Bank of India (SBI) is the most popular and preferred public sector banks in India. The bank has thousands of satisfied & happy customers and offers numerous credit schemes for all lifestyle needs. SBI has over 16,000 branches across India and the bank has spread its wings into more than 30 nations.
Above Rs. 20 Lakhs & Up to Rs. 75 Lakhs
Above Rs. 75 Lakhs
5 Often Overlooked Credit Card Insurance Benefits
Unlike credit card rewards, cashback or miles, many of the best perks of a credit card are rarely mentioned by credit card issuers. Instead, they are often buried under the fine print or overlooked. You might not know but your credit card might help in making life’s little emergencies a lot easier to handle. If the next time, you lose your luggage at the airport, drop your phone in swimming pool or discover an unauthorised transaction on your card, just know that your card could help you in ways you did not expect, provided you go by the rules. It’s always worth your time to go through the welcome kit of your new credit card or terms and conditions of your desired card to know the significant perks offered by that card. Most of your credit cards offer insurance covers such as zero lost card liability, lost luggage insurance, purchase protection, rental car damage insurance, trip cancellation insurance, travel insurance cover and much more.
The type of insurance benefits you get depends on your specific credit card, but here’s an overview of the standard insurance covers offered by various credit card issuers that may be available on your card.
Read Also: Tips To Resolve Your Credit Report Disputes
1. Travel Accident Insurance:
You can consider it as a miniature of a life insurance policy, which you get for free when you book your tickets with your credit card. If you meet with any accident, your credit card provides disability and death benefits to you and your survivors, whichever the case may be. But, don’t confuse accidental insurance with medical cover. For example, if you were to break your ankle during a skiing accident, your credit card issuer won’t be providing you with medical coverage.
So, before going on a trip, check what kind of coverage is provided by your credit card issuer. However, consider this only as a back-up as having a travel insurance policy is a must!
2. Zero Lost Card Liability feature:
Most credit cards offer Zero Lost Card Liability policy for fraudulent credit card charges. If your card gets stolen or lost, then by claiming lost card liability, you will not be held liable to pay for any transaction made on the card on a condition that you report the incident within 24 hours. If you notice unauthorized transactions on your account, then you can simply inform your card issuer and file a claim. In most cases, the bank issues a new credit card and conducts an investigation.
3. Rental car insurance
Many credit card companies offer rental car insurance as well so that you need not pay extra for damages, if any, out of your pocket. Most credit cards offer cover for your collision repair provided you don’t exercise the rental car company’s insurance. For example, if you get a dent in your rental car and submit the claim along with all the paperwork, then your credit card company might reimburse you in full for your damage. Usually, most cards offer secondary coverage which only pays for what your car insurance company does not cover. The extent of rental car insurance coverage offered by various credit cards differs from card to card. Some cards offer secondary coverage while some offer full damage coverage. The fine print on your credit card might be tricky, therefore, it’s important to contact your card issuer and verify the coverage policy in advance. Credit card companies have their own set of restrictions and they often refuse to pay some types of charges which are levied by the car rental companies.
4. Lost Luggage Insurance
If your checked-in luggage goes missing for good, credit card issuers will reimburse you for the items in your suitcase, on the condition that you book your tickets from their issued credit card. Usually, credit card companies offering this benefit maintain a bizarre list of items which they won’t insure including, traveller checks, glasses, and cameras. Hence, it is crucial to read the fine print carefully. You can simply call on the number given at the back of your card and depending upon your situation, your credit card company would put you in touch with an emergency travel assistance representative.
5. Purchase Protection
Suppose you are making a big-ticket purchase, say a mobile, then it is helpful to choose a card which could cover for the unexpected mishaps (such as dropping it in a pool) to your newly purchased goods.
Credit card companies offer purchase protection in the following ways:
- Price protection: If your credit card company offers you price protection then they’ll refund you the difference of the amount at which the product was bought initially and the reduced amount of the same product within a certain period of time.
- Purchase protection: If you have bought an item with your credit card and it gets stolen/lost/damaged then your credit card company will cover that item. This insurance is valid for a limited time period from the date of purchase.
- Extended warranties: With this feature, you can add up to a year of warranty to a product, in addition to the warranty provided by the product manufacturer.
So next time, when you choose a credit card then look beyond the rewards and joining gifts. This might take some extra research and time, but it can be worth it if you find an ideal credit card with features that will make your life easier.
Read Also: Top 6 Credit Cards for Fuel Purchases
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