Personal Finance Planning for Investment and Retirement

Here are a few best ways that you can consider while planning for your investment and retirement:

If you are planning for a long-term investment then it will be best if can invest 12% from your gross income or just 10% is also sufficient as per your affordability criteria. However, you must have an additional retirement plan besides these savings. For instance, if planning for short-term saving, you can invest 4% of your gross income and if planning to save for kids then you can invest 2% of your gross savings.

Do not forget that you would require additional fund for miscellaneous and emergency things and situations. So, you can invest in emergency fund and ensure peace of mind.

When you will reach the age of retirement, you would require nearly 75% to 80% of your pre-retirement income to lead the same life as you were living before.

Here, the most preferred alternative is to 17% of your net income or only 12% of your gross income if that is suiting your requirements. However, if you are going closer to retirement then you may consider investing 20% to 30% of your gross income. You can also consider investing in stocks and mutual funds that can help you give good returns on your invested funds.

Always remember the thumb rules:

• If your retirement is at 60 years, invest 10% of your income.

• If your retirement age is early, invest 20% of your income.

• If you are in your 30s, it is advisable to save 15% on your leisure and comfort activities, 20% for luxury and 10% for basics.

• If you are more than 30 years of age, it is wise to invest 5% more in each of the above mentioned categories.

When you want to secure your future, planning for your financial expenses in advance is a smart way to lead a stress-free life till and Finafter your retirement.

So, what are waiting for? Remember the thumb rules and considering your gross income and future requirements, invest the most appropriate percentage of your financial income.