Financial markets are unfortunately, totally uncertain while one’s retirement savings could be growing rapidly in one decade, they could easily fall in the next decade.
Creating retirement peace of mind starts by taking steps that will insulate one from some of the swings of the market and build some predictability into one life.
If one believes is near to retirement phase, and at the same time plans to get your finances in your order to get better returns. A good post-retirement financial plan, in advance, so that on the day of you will, indeed, retire, with no unpleasant surprises.
Tips for a worry-free Retirement are:
Short Term Orientation
The fact is, one will probably live about 15 to 20 years or more upon retirement (even longer hopefully). As such people will still need to grow some of their money and invest a little portion in some growth-oriented investments like equity funds. So, it is advisable to reduce the percentage of the portfolio in more risk-oriented investments
Disclaimer: Don’t remove them.
Forgetting About Inflation
Inflation will not retire just because one did so it is advisable to consider the inflation before investing in any funds. One’s retirement funds will still need to have grown to catch up with inflation. So it is recommended to invest in some equity mutual funds, SIP during the retirement phase.
Putting All Your Eggs In One Basket
The prime most rule of investing still applies to everyone whether it is to make an idea of investing at a young age, middle age, or at retirement phase.
One should have diversified portfolio use by maintaining a healthy portfolio in cash, money market investments, bonds, equity funds, and debt funds. Making a diversified portfolio gets you catching steady and stable growth for a longer time.
Spending Too Much, Too Soon
A common mistake among retirees these days is they rush too frequently into a spending spree.
Retirement to others is to set free and the wish to live beyond your means is a very strong temptation. Don’t rush, one still have a lot of time, so take it slow and grow patiently.
Simplifying Legacy planning
One probably will need more than just a will. Retirement is a good time to consider some genuine legacy planning. Learn from many ways before planning to Invest.
Not Preparing For Medical Emergencies
60 or 65 is still a comparatively young age, so the need for medical concerns is not yet taken seriously. The covid-19 pandemic has let people of all ages (especially for old age groups) plan for healthcare is utmost superiority and can’t be ignored, so one should emphasize his/her savings for medical emergencies first ahead of other things.
Not Reviewing Finance And Investment
The need of the hour is to do a periodic review on finances and investments should be the main concern of any retiree. So, periodically review and reassess your investments and portfolio so that one can make the best outcome i.e. returns from his/her investments for a longer period.
While prudence is key during the retirement phase, fear is a very crippling mindset. So as long as one follows common sense & has done best in preparing for retirement, try just to relax and not worrying too much this is what retirement is all about.