The Aspiration Index survey revealed that 91% of millennials handle their own finances and are big on investments, which tend to be 1/3rd of their wallet share. However, these millennials often ignore planning for their golden years, as they feel it is early to start in 20s or beginning of 30s for retirement. But, time flies when you’re busy building a career and a family. So, accepting this fact early on in your life will give you a longer span of time during which you can plan for your retirement years with ease and do it comprehensively too! Take a look at how you can plan for retirement more effectively as a millennial.
Dive In By Taking Calculated Risk With Your Investment Folio
Develop a high risk-appetite during your 20s and choose high return investments without hesitation. Here you can include stock market investments to earn the most from market gains over time. Additionally, you can plan short-term and long-term mutual fund investments too. This will ensure you can earn more when the market is good and balance out any losses in the long term.
Build And Buy assets Keeping Tomorrow In Mind
Buying a house that you can later call your retirement home, investing in a commercial property that you can later use to begin your own business, or purchasing gold keeping rainy days in mind are all wise investment options. So, the younger you are when you begin such investments, the higher your yield will be.
Include Insurance As A Part Of Your Savings Plans
While you are thinking about the risk-to-return paradigm, do give a thought to your savings too. This means you need to set one foot in the secure zone as well. Choose insurance policies to balance the risk in your life. Create a mix of insurance cover to include term insurance, health insurance, and life insurance. The biggest benefit of buying insurance at a young age is that you get to spend less on premiums and get hefty coverage. You also get to earn bonuses for every no-claim year.
Pay Attention To Priorities And Save Some Hard Cash
Cash savings always come in handy during emergencies. So, apart from deducing a plan keeping the future requirements in mind, you must also pave the way to build a strong cash corpus. You can do this by optimising your needs. This does not mean you let go of your wishes, but that you should observe a ‘wait and watch’ tactic. For instance, do not buy excess clothes or lifestyle products all-round the year or in a hurry. Rather, plan to buy them only during sales or when they’re on discount or after some time has passed and you know you really need or want it. This will allow you to save your hard-earned money and use it to buy things that are absolutely essential.
Do follow some simple steps mentioned above and start building your retirement corpus right now.
The writer is CEO, BankBazaar.
BankBazaar.com is a leading online marketplace in India that helps consumers compare and apply for credit card, personal loan, home loan, car loan, and insurance.