While taking the initial step in the corporate world, the last thing that is there in priority list is Being financially secure to enjoy your life after retirement.
For those under 30, an early adoption of different instruments to secure your future can result in great returns in time ahead. For many this realization comes very late. For now a days, there has been a lot more focus on educating people as well as planning instruments which help individuals save for their future. One of the most important requisites for Active Living is Managing Mental Stress, which increases over time with increasing expenditure as well as work load. Hence it is utmost important to think for our future and be calculative with the expenses that will come in near future to be prepared accordingly.
Although the market does offer different instruments for investment which offer different range of returns in stipulated time frame, what is more important is building your own portfolio that caters to different kind of your specific time bound goals.
Few Important Tips that one should consider while Investing are –
Define and Set your Goals – Every Stage of your Life, there will be different goals that you will intend to achieve. The time for Investing comes at a time when you start your career and move ahead towards planning your family life ahead. While some goals shall require Investment for a short-term, some goals shall be directed towards long-term investments.
The Early the Better – It is always better to commence investing from the early levels as the value of money invested multiplies in years ahead. The value of money would always be higher after 10-20 years depending on the investment period and value. Choose the right fund that would give you better returns ahead.
50-30-20 Rule - With time, there will always be certain expenditure that one can foresee like Kids Schooling, Educational Expense, Planning for Kids Marriage, Post Retirement expense, Living expenses etc. while there are some expenditures which pop up suddenly like Health expense, Family trips etc. Hence it is very essential to follow a rule wherein 50% of your Salary should be towards your Monthly Expense which are your needs, 30% towards your Wants and 20% towards your Investments.
Choose your Investments Carefully - For a short-term goal, you should opt for a safer investment and use the return-generating potential of equities for long-term goals.
Review your Investment Portfolio periodically – The market sentiments are based on Internal as well as External factors which are based on Global News as well as Domestic News which can be based on stock performance, industry, or even economic conditions. Hence it is necessary to keep a track of your investment and check if your set targets are being met.
Patience is the Key – People generally fear of loosing monies invested in instruments whenever the market slips. The golden rule for investment is to invest more with dipping market. Always consult your Relationship Manager or Portfolio Manager for the right options in Investment and do a proper check of the past history on its returns.
One thing that one should remember is that the money in your bank account is your own hard earned money with which you intend to fulfil your dreams as well as your family commitments and lead a healthy active life. Money lying idle in the bank account is like an opportunity lost. And this money should be smartly invested in market instruments to get good returns.
While we have been talking about Market Instruments which are linked to Investments, basis the above description one can systematically invest money in them. To list down, the market instruments are as under –
· Stocks
· Mutual Funds
· Bank Fixed Deposits
· Recurring Deposits
· Public Provident Fund
· ULIP
· Employee Provident Fund
· National Pension Scheme
· Sukanya Samriddhi Yojana
By now we have understood how and where to invest monies which can help in investing for every upcoming phase of your life. Remember, the level of investment depends at what age you are commencing your investments and that this money is yours, and so are the goals. Hence keep track of ways to invest and your portfolio.
We would been keen to know what is your pattern of investing that has helped you grow and has there been any learning out of it.
By - 360activeliving