Most of the people spend their youth in search of income and wealth. Retirement planning can simply be understood as the process of making sure that in your later years, your only concern is how you spend your money. Warren Buffett famously said, “Money isn’t everything. Make sure you earn a lot before you speak. Such nonsense. What is “a lot”—will vary from person to person. However, the following 9 rules to help everyone on the retirement planning journey.

Rule 1: Start early and keep investing

When I started my first job, I had never heard the term “financial planning”. However, I aimed to increase my income tenfold every decade. With 400, I bought 25 shares of a market leader. Consumer business at age 20 in 1973. The price of each share of this company is now Rs 2,700. The tremendous capital appreciation of the investment was a fundamental reason why I was able to achieve my goal. Whether you are in business or service, start early and keep investing. Starting early and investing early with stocks and equity mutual funds can help mitigate those risks and achieve long-term wealth creation.

Rule 2: Insure yourself

Insurance is important and ensures the financial well-being of your dependents after you. Make sure to buy long term life insurance. Start with term insurance when you are young. Buying insurance when you are young and healthy is easy and cheap: Choose the longest term possible when buying insurance. My personal life insurance policies cover me till the age of 85. However, be sure to reevaluate your insurance policies every 2 years. A lot can change in life: Your life situation may change over time and you may not be able to afford a bigger policy anymore. Or your policy may be insufficient for the massive economic growth you can see. Re-evaluation every 2 years ensures you have optimum life insurance coverage available

Rule 3: Don’t push yourself too hard for real estate

“Stupid people buy their homes, smart ones lease them. I often see bank employees buying homes because they can get cheap loans from their employers. However, they enjoy their homes because of frequent transfers. Are unable to take. Do not engage with real estate. However, if you are running your own business, buying property can be an important strategy in your overall financial plan. As a collateral for a real estate business loan The interest on the loan can be deducted from your income on your tax return. Make sure you take advantage of this facility by buying real estate with the help of loan wherever possible.

Rule 4: Beware of Voluntary Retirement Schemes

It can be extremely dangerous to sacrifice long-term income for the payments you get with voluntary retirement plans. Don’t forget to account for the additional benefits you get from your workplace like mediclaim. If you plan to leave work to run a business, be sure to have a plan. in advance

Rule 5: Running a Business with Borrowed Money

Your personal wealth should be used only for investment. Always run business on borrowed money. Make sure you have paid off any of your debts on any real estate you purchased. Be sure to update the valuation of your properties before using them as collateral.

Rule 6: Plan your children’s education

All parents yearn for the best education for their children. Education expenses are increasing day by day. Plan your children’s education expenses with proper investment plans. Continue to systematically invest in their potential for the future.

Rule 7: Invest in Gold

As Indians, we have a personal preference for sleeping. With the help of Gold Bonds, you can now buy gold in a convenient and safe manner. It also generates a new income stream. Plan your investments wisely to generate multiple income streams, availing tax-free schemes wherever available

Rule 8: Invest in PPF

Public Provident Fund (PPF) remains a widely lucrative investment option for all. Although dividends on shares and mutual funds are no longer tax-free, interest on PPF accounts can be availed tax-free even after the age of 65.

Rule 9: Give Back What You Don’t Need

Be sure to make a will. Donate what you were unable to spend in your lifetime.

Views are personal: The author Pramod Puranik is a mutual fund distributor based in Nashik

Disclaimer: The views expressed are those of the author and are personal. TAML may or may not subscribe to it. The views expressed in this article/video are in no way intended to predict or time the markets. The views expressed are for informational purposes only and do not constitute any investment, legal or taxation advice. Any action taken by you based on the information contained herein is your sole responsibility and Tata Asset Management will not be liable in any manner whatsoever. for the consequences of such action taken by you

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