As one retires, it is essential to plan investments wisely to ensure a secure and comfortable future. With a longer life expectancy and the unpredictability of social safety nets, managing a retirement corpus effectively is more important than ever. By making informed investment decisions, one can maximize the potential of one’s savings and generate a steady income stream to support one’s post-work years. By investing time and effort into thoughtful planning, one can enjoy peace of mind and maintain a desired lifestyle throughout retirement.
At Right Horizons, we have decades of experience in creating retirement plans and managing the retirement corpus for individuals. While there is no universal retirement plan that fits everyone, we offer a tailored approach to help investors plan their retirement journey. Let us provide you with a blueprint to generate regular income from your retirement corpus.
This step is not mandatory for everyone. If you have a large retirement corpus (more than what you require to generate the desired monthly income), you can implement this step.
Assume you can generate your monthly income with 75% of your corpus. You can then divide your corpus into two buckets – R & H. Bucket R will have 75% of your corpus, and you will invest the amount in schemes that offer regular and fixed income. The bucket H is set aside to invest in instruments that allow corpus to grow. More on this later. At Right Horizons, we take care of your R & H buckets.
If you have a health insurance plan, well and good. If you don’t set aside a corpus to take care of your medical (and other) emergency needs. Use the remaining amount to generate monthly income. Diversify across various investment options to take care of your monthly income. Choose your investment options keeping in mind your risk profile, income needs, liquidity requirements including for emergencies, inflation protection and tax implications. We will cover these aspects as well as investment options separately.
For this bucket, your goal should be to grow your capital. At the same time, ensure the capital is protected. You should not touch this amount for the next 5 to 8 years. After that, you can review, and if you want a higher monthly amount, you can withdraw the profits from this bucket and move to bucket R. Let the remaining money grow again.
The amount from this bucket can go into options that help you grow your wealth. You can afford to take a higher risk here. Please understand the risks before you pick these investment options.
It is important to note that if you have any other goals that come due after your retirement, these also need to be planned for. You would also need to plan for health emergencies either through a health insurance or a separate corpus that you set up for this purpose. You can undertake a comprehensive financial plan if your other needs are significant.
Investment and financial planning do not come naturally for most of us without a financial background. Planning for your retirement appropriately is crucial, as it has a significant impact on your future well-being. Ensuring self-sufficiency during your retirement years requires careful and informed planning. Contact us to help you plan and secure the golden years of your life.
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