The world has now found the perfect treatment for Covid-19. Also, a certified vaccine has been released to protect you from the virus. Along with this, the fear of dying from Covid-19 is now history. But there is still one thing that can spoil the situation. We are talking about a plan to make your retirement financially secure. You must have seen that, in addition to spoiling the health of the people, Covid-19 has also shaken the economic plans of many people. Possibly, your plans too may have gone wrong. Therefore, if you are not cautious, then your retirement plan will fall into balance.
Reduce Expenses and Invest Savings
We recommend you to reduce your expenses as much as possible. This is especially important if your job has gone away or your salary has been cut. Due to the lockdown, we are avoiding shopping, eating out, travelling and daily trips. Use this time to prevent unnecessary expenses. The more you save today, the more you will be able to invest and hence the chances of raising a good amount of money at the time of retirement will be better.
Re-Set your Goals and Add More Revenue Sources
Accept that the investment strategy before COVID may not have worked after COVID. This advice is particularly relevant if your income has decreased during a lockdown or if your investments are giving you a low ROI. We recommend that you first find ways to make your income the same as before COVID. You and your spouse can also think of adding new means of income from your skills and hobbies. The higher your income, the more you will be able to invest.
Interest rates on most retail loans have come down in the last few months. This has reduced your EMI. So call your bank and negotiate with EMI. What will you do with the remaining amount in this item? we suggest that you put it in your retirement plan.
Re-Evaluate your Portfolio and Think of More Allocations to Equities
This is the best time to conduct a thorough review of your asset allocation. See if this goes according to your plan. If not, it’s time to fix it. Your investment in different classes of properties must be correct. For example, for liquid funds, it is necessary to have the right debt fund in your portfolio. When it comes to equity, choose the fund carefully and make sure that it is according to your risk profile. Aggressive equity funds rise and fall rapidly. See what works best for you and make sure you get the same fund.
Review your Retirement Goals
If you are in the early stages of your career, then you may emerge early from the Covid-19 position. You just have to increase savings or expect that your income will increase over time. Middle-aged or senior professionals will have to review their retirement goals by themselves. The closer you are to retirement, the more you have to look back and set retirement goals accordingly. If necessary, postpone your retirement for a few years to get the desired amount.
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