homevideos Newspersonal finance NewsStarting early is key to stress free retirement: Where should you invest?
Starting early is key to stress-free retirement: Where should you invest?
People are entering the workforce later, aspiring to retire sooner, and no longer envisioning decades with a single employer and a pension waiting at the end.
Planning for retirement often takes a backseat as people focus on more immediate goals like education, housing, and travel. Salonee Sanghvi, Founder of My Wealth Guide, points out the common tendency to neglect long-term goals, assuming there's ample time to strategise and accumulate funds.
The landscape of work has evolved significantly over the years.
People are entering the workforce later, aspiring to retire sooner, and no longer envisioning decades with a single employer and a pension waiting at the end.
Sanghvi emphasises the importance of starting retirement planning early, citing time as the most critical factor in the compounding of investments.
Time, she stresses, stands as the most influential factor in investment compounding compared to the rate at which one invests. Starting early not only cultivates a habit of saving and investing but also offers flexibility due to the extended period available to achieve financial targets.
Sanghvi suggests starting with modest contributions and gradually increasing them annually in tandem with income growth. Postponing this planning would necessitate significantly higher monthly savings to attain retirement goals, which could pose challenges considering varying incomes and lifestyles.
For those navigating the complex world of investment options, Sanghvi recommends considering equity funds, including large-cap, flexi-cap, and mid/small-cap funds.
Additionally, she highlights the existence of dedicated retirement funds offered by 11 Asset Management Companies, with a combined AUM of approximately ₹22,000 crore.
Watch accompanying video for more
Also Read | Youngsters prefer mutual funds over insurance and fixed deposits for retirement planning
(Edited by : Anshul)
First Published: Dec 26, 2023 6:15 PM IST
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
PM Modi visits Ram Mandir for first time since 'Pran Pratishtha', offers prayers before roadshow
May 5, 2024 8:59 PM
Visiting temples, obliging selfie requests, jabbing rivals – Kangana Ranaut is wooing voters on campaign trail
May 5, 2024 8:23 PM