Posted by We never know when we will die. But before we die, we have a great life and it depends on us how beautifully we write every page of our LIFE. In broad sense we consider health and wealth as the major aspects of life. However, one mistake we do that when we earn money… we neglect our health When we think that we have enough wealth to enjoy, we find that our health do not permit us to enjoy it. Most of us neglect the part of saving for our ‘after retirement life’, so as we can live our after 60’s life with grace and comfort. And to have such happy life after retirement, we need to think and act accordingly when we are young.
Why we need to think about ‘after retirement life’ so seriously?
Well, this is what I learned in our recent Reliance Blogger’s Meet. It’s not the only one thing I learned, but I really understood why we should plan for retirement savings, as early as possible.
- Currently our life span is increased than our earlier generations, due to improved medical sciences.
- And even after our generation are having mostly nuclear family system, we still hope that our children are going to take care of us
- We do not have any government sponsored security for retirement life
- We might incur lot of medical expenses as we age.
- We neglect inflation when we save for future. So most of the time whatever we are saving today , may not have the equivalent value in future.
- Most of the time we plan for our 40s and 50s like children’s education, their marriages etc.
Why , when and how we should plan for Retirement?
Reliance Retirement fund involves two distinct phases ideal for youngsters and the income generating group.
Wealth creation Scheme majorly focuses on Equity-oriented for accumulation. This is good for youth as it covers 65-100% in Equity. The 6 steps for investment in this scheme are as follows
• Set up goal
• Set up SIP
• Add lumsum amount
• Auto transfer to Income generation Scheme
• SIP till retirement
• Set up auto SWP to Income generation Scheme
Income generation Scheme : It mainly focuses on Debt-oriented for distribution up to 70-95% in Debt & money market securities. The 5steps for investment in this scheme are as follows
• Set up goal
• Set up SIP
• Add lumsum amount
• SIP till retirement
• Set up auto SWP
The major features of both these schemes are growth of assets while fighting inflation, enable dropdown without depleting corpus. You also get flexibility to manage investments and can change the schemes as per your wish. You can get tax benefit u/s 80C/(2) on the amount invested in these Reliance fund Reliance fund schemes up to 1.50 Lakh during the financial year. Other exciting feature of these schemes is that there is an exit load of 1% on redemption at the age of 60 provided the lock in period is 5 years.