MYTHS ON RETIREMENT PLANNING
Often people planning for their retirement fall prey to certain myths that can confine their financial goal success. While we, at Money Multiplier, understand that your retirement could be several years away, it’s important to remember that investing for your respectful and confident retirement life should be your top most priority. So, to help you distinguish myths from reality, here are some of the most commonly believed retirement-planning myths.
MYTH #1 On Retirement Planning
I’m Too Young to Start Investing for Retirement
This is the most common myth people fall prey for. In reality, the earlier you start investing for your retirement, higher the returns you can reap. Most financial planners believe that the right time to begin investing for your retirement is from the day you start working. The day you get your first pay, you should ideally start planning for your pension.
MYTH #2 On Retirement Planning
I’m Too Old to Start Investing for Retirement Now
If you feel it’s too late, to begin with, your retirement planning, don’t worry. While it is always better for you to have planned earlier, you can still play catch up. You can invest money in an equity, equity-oriented mutual funds or medium-risk Unit Linked Insurance Plan (ULIP), which guarantees good returns in the long term. Irrespective of starting late or early, you should diversify your investment portfolio this will help you to balance your risk and returns.
MYTH #3 On Retirement Planning
I Don’t Have Enough Money Now to Invest for Future
While investing for your retirement it’s essential to remember that when it comes to laying a nest of eggs even a little can go a long way. Choose to invest a small amount of money every month in investment instruments that are suitable for your future requirement. Remember, taking small steps is anytime better than not moving at all.
MYTH #4 On Retirement Planning
In my career as a money multiplier, I have often observed people rebel from investing in equities. They feel while investing for their retirement equity is not the right investment instrument, as they cannot afford to lose money. Depending on your risk tolerance and the returns you’re looking for retirement life, you can invest in a mix of funds that can guarantee higher returns and at the same time curb the risk.
MYTH #5 On Retirement Planning
I Withdraw Some of My Retirement Investment Now and Save Up Later
Withdrawing money from your retirement investment before you actually need it is really not a good idea. For a simple reason being – while you’re working, it’s quite manageable for you to apply and repay a loan. On contrary, once you retire, funding your use to the lifestyle without a steady source of income could become incredibly difficult.
