Every individual works hard in their earning years and tries to put money aside for their retirement. While it is a good habit to keep saving a little of your earnings towards your retirement planning from an early age, the real catch is calculating how to invest for this amount to outlast your lifetime.

Your retirement portfolio should be ready to start giving you monthly paychecks when you are about to retire, making the transition smooth for you and your family. While it may seem like a tough task, finding the right balance is not all that difficult either. All you have to do is start early, plan ahead, and use an investment calculator to understand how your portfolio can be made into a nest egg for your retirement over time.

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Planning An Ideal Post-Retirement Portfolio

While there is no such thing as a perfect investment, you can do your research online and invest money in different tools that can gain good returns over the years. With the help of an investment calculator, you can easily figure out how to start building your retirement corpus.

Here’s everything you should be doing to plan your finances right

1. Systematic transfers: A few years before you retire, most financial experts often recommend shifting some of your riskier equity investments more towards the debt funds. Post-retirement, you can start looking at your portfolio in a five-year bucket based on your goals and monetary requirement.

2. Ensure the safety of your corpus: It is better to keep some wealth behind instead of risking it all in some investment or the other, as you never know when an emergency could strike. A financial advisor can help you analyze your plan and create a portfolio suitable to your current earnings, age, and market conditions at the time.

3. Allocate assets smartly: While equities offer higher returns, it may not be advisable to have your entire retirement corpus in just equity schemes or invest in volatile markets. Generate wealth with a diversified portfolio and try to have a little bit of everything to keep your portfolio balances.

How Do You Choose An Ideal Investment Plan?

There are many investment options available out there but if you are looking for an ideal post-retirement plan, then here are a few things to consider:

1. Your Goals

Post-retirement, apart from getting monthly checks to replace your salary, you can also save towards some other goals like traveling, buying real estate, saving for your children’s marriage, renovating your home, etc. Your retirement fund, if planned right, should be able to help you with this and convert your savings into a paycheck that can replace your salary even after you retire.

2. Flexibility

If you go for a ULIP scheme, then you will have the choice to switch your portfolio as well. You can simply calculate your ULIP returns online and keep track of your scheme. Based on your risk appetite, you can choose to shuffle between debt and equity even after you have invested in ULIP.

Compared to most insurance companies, ULIPs are considerably flexible. You can find the ULIP full form online, fill it with ease, and get started with your investment in no time. You can also calculate ULIP returns online, using ULIP calculator tools.

3. Compounding Returns

For investors who have long-term goals, investment schemes like ULIP are good bets. If you use an investment calculator to calculate ULIP returns online, then you will realize that higher returns can be earned because your money gets compounded.

Even if you want to exit from the scheme after the 5-year lock-in period, you can still earn good returns in such a scheme. However, the longer you keep going in ULIP schemes, the better it is for your investment- you can use an investment calculator and check for yourself!

Do not forget to calculate your taxes well in advance. According to Budget 2021, the maturity proceeds of ULIPs will be taxable at par with the equity-linked mutual fund schemes, applicable from 1st February 2021. Official government sites can help you compute your taxes for the current financial year by using an income tax calculator, which will help you plan your finances ahead and save on taxes while doing that.

The Bottom-Line To Planning Your Post-Retirement Portfolio

If you are the kind of investor who is looking to get an insurance benefit as well as invest in equity to reap long-term benefits, then ULIP policies could be ideal for you. These plans offer a mix of both these characteristics in financial planning as a small portion of your investment goes towards securing your life while the rest of it gets invested in equity instruments. Remember to use investment calculators to calculate ULIP returns online, and even insurance plans. Eventually, the best investment plan for you will be the one that is aligned with your financial goals and retirement planning and can help you live a stress-free life once you retire.