Stepping into the golden years of retirement is like reaching the serene banks of a river after a thrilling rafting adventure, something youngsters do on the banks of the Ganga in Rishikesh. You may not be that young but your goal now is to keep your raft steady, while still moving forward at a comfortable pace.
- Preserve Your Capital: Your primary goal should be capital preservation. Like securing your raft on the riverbank, safe and steady investments such as government bonds, fixed deposits, and senior citizens saving schemes can be beneficial.
- Generate Income: Retirees need a steady flow of income. Just like a raft needs the constant push of the river’s current, annuity plans or systematic withdrawal plans from mutual funds can provide regular income.
- Healthcare and Insurance: Health expenses can rise with age. A health insurance policy is like a lifejacket – it’s better to have it and not need it, than to need it and not have it.
- Some Equity Exposure: A small portion of your portfolio in equity mutual funds is like paddling occasionally to maintain course. It provides a hedge against inflation and helps in wealth preservation.
- Tax Planning: With efficient tax planning, you can keep more of your income. It’s like avoiding whirlpools that can slow your raft down.
As Peter Lynch once said, “Know what you own, and know why you own it.” So, understand these strategies well, or seek help from a SEBI registered advisor like Jama Wealth, known for its expertise in portfolio management services. After all, even the best rafter sometimes needs a guide.
