We often dream of a bright and financially strong future. Many achieve their goals but some are left drained at old age.

The problem with being old is that no one hires you. And finding a job in India in coming time will be even tougher for seniors, as India is a country of young people and many are jobless.

Its better to think of retirement plan at young age.

How can we retire Wealthy?

By planning and saving or Investing money in a disciplined and systamatic manner.

First make a list of things one desires when he retires,

Home, Monthly Expenses and some extra income to travel or fulfill other desires etc.

How can we achieve them?

Let us think you are 25 year old. The first thing to do is make a priority list. Write down you expenses and timeline.

Lets say your priorities are:

  1. Getting a Vehicle - 1 year
  2. Getting Married - 5 year
  3. Other expenses - 5 year
  4. Children's Higher Education Expenses - 25 years
  5. House - 30 years
  6. Foreign Tour - 31 years

This is a general list, and if you observe the aim is to retire at an age of 55.

The various Investment option you should choose to achieve your targets are:

  1. Devide your current monthly income in different portion and buckets of your goals.
  2. Start putting money in investment that you choose for your Goal Bucket.

Which Investment to choose?

Categorise the risk you can take for your Goal Object. If we see the above list, Foreign Tour may not be a big necessity compare to Childrens Education or a Home.

So Choose a riskier option for not so important Goal bucket and choose safer Investment options for Important Goal Buckets.

What are the Investment for Important Goal Bucket and Non-Important Goal Bucket?

I would recommend Stocks, Mutual Funds for Non-Important Goal Bucket and Fixed Deposits, Debt funds, Government Debenturs, PF, Insurance etc. for Important Goal Buckets.

What are the things to be taken care while finalising the Investment Decision?

INFLATION, suppose house costs 45 Lakh, for coming 30 years you have to save 1.5 Lakhs PA to reach 45 lakhs. But dont forget that rate of House will increase and will not be available in 45 Lakhs after 30 years. Invest in a product which gives Return equal to or higher than inflation rate.

Sample Bucket List

Retirement Planning-Investment, Insurance and what else?


Only investing is not enough, Keep track of your investment, inflation rate etc.

Incase inflation rate exceeds the Investment Return Rate, its advised to change the investment product to achieve the goal.

Please feel free to continue this Discussion on this Forum to counter other points that i ignored.

Posted 3 years, 9 months ago by CA Pulkit Sharma

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