Retirement & Financial PlanningJun 30, 2015•2 min read
Failing to Plan Is Planning to Fail
Financial planning is crucial to securing one's future — here's how to plan efficiently through the three major phases of life.
Tejas Shah
Proprietor of Silicon One and Silicon Systems, AMFI-registered Mutual Fund Distributor since 2004, based in Vadodara.
Here's a look at the three basic stages of life and how they affect our financial needs, and what investment options help most at each stage.
The first job and the joys of being single
Time is your biggest ally at this stage — the opportunity to save for the "big moments" of life without major responsibilities tying you down. Since you're new to the financial world, high-risk investments might not be the best idea; consider mutual funds for potential returns as a way to start your saving regime.
Marriage and starting a family
Setting up a home, having and educating kids — the saving you did while single starts to pay off here, covering a down payment or your children's education. Start diversifying your portfolio at this stage, and consider venturing into the stock market too.
Retirement and the "senior" years
Shift gears to make the most of your last working years. Instead of one basket, use a mixed portfolio of varying risk levels — shares, mutual funds, commodities and fixed deposits — to ensure regular income once you're no longer employed.
As you sit back and reap the fruits of your investments, you'll realise that your planning actually paid off at every juncture, and helped lead a full, yet stress-free, life.
