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Tips to live your life on your own terms after retirement

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Tips to live your life on your own terms after retirement

“Retired alone” is often a word that is heard many times, but has rarely become a reality. Inflation is an unavoidable factor that slaps financial difficulties hard on your face in case you ignore the changing trend of the economy.

To make the first three words of this article come true, we request you, our loyal reader to take some of your valuable time to go through the points mentioned below –

a) Start Early

The best way to make a start is to save from the first day you begin to earn. It is vital to save at least 10 to 20 percent of your salary other than the provident funds to facilitate smooth retirement options.

b) Stock & Equity Funds

The above two are the best tools to beat inflation in retirement planning according to experts if they are bought long term. Kindly note, the type of investment should vary according to your age and it is mandatory to review the portfolio at regular intervals to judge if you are on track.

c) Pay off Debt

Buying through credit cards may sometimes be necessary, but ensure that you do not pay more than 30 percent of what is due. Also, in recent times, housing rents reduce nearly 40 percent of your monthly income. So, if you have availed of a home loan and built a house, ensure that you conclude the terms within half a decade. You can start saving both on the housing rent and loan amount to be paid.

d) Emergency Fund

The fund can assist you in times of distress such as illness, loss of a job, accidents, and many more. A six-month amount of your monthly salary can be counted as an emergency fund.

e) Health Insurance

As a human, you always envision the best of the future, but a single incident of hospitalization can dent your savings. Having insurance policies not only helps you gain tax benefits but also reduces your level of dependence on treatment costs as well as inflation. The best way is to buy a long term insurance plan after researching suitable options.

f) Maintain Discipline

Indulging in luxury are necessary aspects of social character, however, do not let unnecessary expenses creep in. Ensure you and your better half, keep a strict regime, and set aside a portion of the monthly income for retirement. A cost-benefit analysis will determine if going on an unnecessary trip or the movie is worth the cost and value of the expenses incurred.

g) Financial Plan

A financial plan should be revised at least biannually, as the trend of your investments, salary changes every year. Keeping a realistic view on life, family, and shifting of priorities shall make you easily modify your retirement goals to stay on track.

h) New Source Of Income Stream

Creating income other than your regular salary has almost become a necessity. You can work part-time on your passion or do not miss focusing on other streams such as inheritance.

Conclusion

Keep in mind that the goals for a fulfilling life after retirement are a long term plan. It is bound to change course, get modified, suffer setbacks, and face all sorts of challenges. Be a warrior and stay on track to get the dream life you want at least after retirement.

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