In today’s era, financial planning is very important in time, so that the tension of money after retirement can be reduced. However, financial planning should be done properly, so that financial goals can be met.
Portfolio diversification and asset allocation are key principles when it comes to personal finance, which Indian investors are well aware of. Here are some tips from Ajit Menon, CEO, PGIM India Mutual Fund, to plan better for post-retirement while still young.
Think about improving the performance of the portfolio
Generally people put their hobby or passion on hold during their working year to give priority to their daily work. The reason is that it increases the expenses. But we should think about increasing earnings. For this a better portfolio is necessary. Talking about mutual funds, portfolio performance can be improved by diversification and asset allocation. For example, when equities fall, an allocation to gold in the portfolio provides stability during volatile times.
prepare yourself for retirement
As one reaches retirement age, his children grow up and his professional career comes to an end. After retirement, a person comes out with almost a new identity, his old identity is over. The better solution is to prepare yourself for retirement in the working year itself.
Changing approach of young generation
Today’s young generation’s approach is changing. Their focus remains on increasing income. Many people do some side work apart from the job, so that their income increases. Side work is also based on one’s skill or hobby. For example, if you write a book on a subject and get it published, then it is an extra job for you apart from regular work. If the book gets better reviews then you can become a full time writer in retirement.
How reasonable is moonlighting in India?
There is a lot of debate going on in India these days on moonlighting. Its validity can also be questioned, because the idea of working multiple jobs does not fit in many ways. The reasoning behind this is that the employee is using the same skill set to perform multiple jobs.
