When it comes to managing your money post retirement, there are no second chances.
Your first goal should be to take care of your regular expenses. So make a detailed list of all your expenses and build some buffer. Next make a list of goals that you want to achieve in future – gift to grand children, travel, charity – the list can be as long as you wish!!!
Take a stock of your existing investments and figure out how much surplus you will generate during your working years by projecting your income and expenses. Do not forget to include investments provided by your employer such as EPF, NPS, Super Annuation and Gratuity.
Your risk profile plays a huge role to decide how exactly your money will be invested. Take our psychometric test and figure out your risk profile. From your risk profile your base asset allocation will be derived which forms the foundation of your investment strategy.
We take your base asset allocation and change it for every goal depending on how near or far they are. Mellow down your asset allocation for goals that are just round the corner and make the asset allocation aggressive for goals which are in the distant future.
Distribute your current investments and future savings among various goals taking in to consideration the applicable asset allocation. First ensure that you have enough to live a comfortable life and only then move on to achieve your other goals.
Your retirement plan is not for a month or year but for few decades. With increasing age, the chances of medical complexities goes up. This can impact your finances in a big way. This can be minimized with an adequate amount of medical coverage for you and your spouse.
It is crucial to have a full proof financial plan before you retire. Post retirement there is hardly any chance to make or correct any mistakes, unlike the working years. Prioritize provisioning for self and spouse basic requirements over others, thereby living a peaceful and independent life.