A Retirement plan to achieve coveted financial goals
Retirement is the one phase of life, where everyone wanted to have peace including financial Peace. And hence you must start early in planning your investment. In this article, we will discuss a Retirement plan to achieve coveted financial goals using the bonds from the Bond market and other investment strategies by designing a stable portfolio with consistent and stable returns.
With proper planning and savings that provide good returns, you can have a secure and happy life in your retirement. The money must beat inflation and at the same time provide safe and secure returns.
And in this regard, it is important that you start building a strong and stable portfolio that can provide good secure life. The below are the important strategies that can be followed to have a secure peaceful retirement.
1.Bond Market Investing.
One method to get secure returns at the same time preserving the capital is by investing in some well-rated bonds. If you have heard about the bonds, bonds will have a pre-mentioned interest rate or also called coupon rate which will be paid to the bearer of the bonds at a regular interval mostly annually or semi-annually and in some same quarterly. hence the bearer of the bonds will get constant interest rates at regular interval of time. And the bonds will have a maturity period. The bearer of the bonds will receive the interest rate till the maturity period and at the maturity date, the principal amount that has been paid initially while purchasing the bonds will be paid back. This means the Bearer of the Bond will get back all the principal amount that is invested and also earns constant interest at regular interval till the maturity period.
This is one of the methods to secure your principal amount at the same time getting constant regular interest payments. But the selection of the bonds is very important as Bond investing had its own risk factors that are involved. Hence it is important to constantly observe the ratings of each type of bond and suitable take any decision to hold or to exit.
2.Regular Interval Income
Another method that can be used is to invest in different bonds that have different interest payment cycles. In this way, you can get the interest payment from different bonds at different period of time and hence can have a regular source of income throughout the year to meet the expenses.
But you can also invest in different companies to have a diversified portfolio that pays dividend at the different quarter and hence ensuring a regular source of income. There are many companies that are very consistent in paying dividends to their investors and these companies can be selected as a part of the portfolio to get regular dividends.
3. Emergency Fund
And when you are planning a retirement, it is as important to have an emergency fund as having a regular source of income. We can never expect what type of unexpected expense may come and in such a situation, you should get worried about the un withdrawable money that got struck in bonds and other instruments. Hence it is important to have an emergency fund.
You can invest in liquids funds that are widely available which provide the option to withdraw the money instantly in times of emergency. There are many options for such emergency funding needs. You can visit the ET money app and invest in the Smart deposit option that provides the option to withdraw the amount up to ₹50,000 daily or upt0 90% of the investment value and will be credited to your bank account within 24 hours.
4. Tax Implications
When you are planning different investment options for your retirement, it is important to consider the different tax implications that are applicable to the profit you are earning. And if possible you can choose multiple options which will help you to save tax.
There are multiple government bonds that will provide multiple tax benefits and hence can enjoy tax-free returns. Tax implication is mostly ignored by most of the people and in the end, results in less income than actually planned.
Retirement is one phase of life that needs carefully planning for a peaceful life at your old age. having a properly designed plan will help yo face any challenges you may face during your retirement period and can stand on your own feet with leading a independent and happy life.