Chalk out a financial plans as soon as you occupy your chair at office and start saving and investing accordingly, as sustaining the retired life demands a ready retirement corpus.
In the highly competitive job market, you would get little time to spare, once you have grabbed the opportunity that you were vying for. The joy of having 24×7 connectivity would make you accountable for an office assignment even during the leisure time. So, it has become very important to have adequate insurance covers and investment plans in place so that you may get immediate attention during a health emergency or a handsome corpus in hand when you finish the tiring career.
Apart from getting a job, survival and growth in the razor thin competition is also a big issue. So, you must have an alternative source of income, in case you decide to change your profession or establish your own setup. So, plan your investments while you have disposable income in your hands, as you can’t save and invest during a financial contingency; rather you would need money at that time. Unless you create a corpus through investments to sail through the tough time, you may have to take emergency loans at high rate, which would push you in deeper trouble. So, as soon as you start earning, spare some money from your luxury spending and invest.
Here is how you may meet your targets by saving and investing just Rs 100 a day, assuming that your present age is 25 years and you would retire at the age of 60.
Rs 60 per day for SIP
Chalk out your financial plans as soon as you occupy your chair at office and start saving and investing accordingly, as sustaining the retired life demands a ready retirement corpus, which you may invest in pension plans to replace your monthly salary. If you start investing Rs 60 a day or Rs 1,800 monthly through SIP in a good equity mutual fund (MF) as you join your job at the age of 25 years, you may create a corpus of Rs 1 crore when you retire at the age of 60, that is in 35 years, assuming a CAGR of around 12 per cent. However, the corpus of Rs 1 crore may sounds good now, but when you retire after 35 years, you may need a much bigger one to meet your day-to-day expenses. So, plan your investments accordingly.
Rs 20 per day for health insurance
The time needed to visit a low-cost and crowded government hospital during medical emergency would curtail your career growth or may even risk your job. So, you would have no option, but to visit that expensive private hospital to get quick appointment, timely investigations and treatment. To avoid straining your finances due to illness, taking health insurance is a must. Taking into account the amount of hospitalisatin bill you may have to pay in case of any unfortunate illness or accident, health insurance cover of at least Rs 5 lakh is needed. You would need to spare Rs 20 per day to get a comprehensive health cover of Rs 5 lakh sum insured. But it is advisable to get a cover with best features rather than getting a cheaper one. The daily outgo would increase over time as the health insurance premium not only increases with the age, but also revised from time to time to get it aligned with the increasing medical expenses.
Rs 20 per day for term plan
Apart from investing for your retirement corpus, you should also spare money to take life insurance cover, so that in case of untimely demise, lives of your dependents do’t get ruined due to financial hardship. You may get a term plan of Rs 1 crore by paying a premium of about Rs 600 per month, that is Rs 20 per day.