Retirement Planning: Follow these 7 golden rules when you're young and your pockets will be full when you're old..

The biggest concern after retirement is a regular income. But if you plan your investments properly from the beginning of your career, you will always have a full pocket in your old age. You will never have to depend on anyone for money. Here are 7 rules you should adopt in your youth to ensure a comfortable old age.

1. Start Early

"Time" is the biggest ally in investing. The earlier you start, the greater the effect of compounding. If you start investing at the age of 25, by the age of 60, you can accumulate double or triple the amount of money as those who begin retirement planning between 35 and 40.

To achieve this, start a SIP from the beginning of your career, even if it is small. Later, as your income increases, you can start a new SIP or step up your existing SIP. You can also invest in other avenues. The key is to start investing early.

2. Treat Retirement as a Goal
Treat retirement as a financial goal. This is a time that everyone will face. Therefore, determine in advance how much money you will need by age 60, taking inflation into account. Then plan your investments accordingly.

You can use an online retirement calculator to determine how much money you will need for old age. This will help you determine your retirement goal.

3. Diversify Your Portfolio
Don't invest all your money in one place. Keep a portion in mutual funds, EPF, NPS, PPF, fixed income, and equity. This will ensure that if one investment's returns decline, the other will take care of it.

Diversification = Lower Risk + Higher Stability.

4. Have a Long-Term Vision in Equities
If retirement is still 15-20 years away, there's no better option than equities (stock markets or equity mutual funds). Over the long term, equities have delivered better returns than traditional investments (like fixed deposits or gold). Past records show that equities are volatile in the short term but build wealth in the long term.

5. Plan for Tax Efficiency

Tax planning is crucial, along with investing. Schemes like NPS, PPF, and ELSS not only build a retirement corpus but also provide tax savings. These schemes can provide deductions of up to ₹2 lakh under Sections 80C and 80CCD(1B). With tax efficiency, your net returns will increase further.

6. Build an Emergency Corpus
Before you start your retirement corpus, be sure to have an emergency corpus covering 6 to 12 months' worth of expenses. This emergency fund is very useful when you suddenly need money due to medical emergencies, job loss, or any other unexpected problem. If you already have an emergency fund, you won't have to disturb your retirement corpus. This is part of your financial discipline.

7. Don't Ignore Inflation (Beat Inflation)
Inflation is the real enemy of your money. If your investment return rate is 7% and inflation is 6%, your actual return is only 1%. Therefore, always choose investments that can provide inflation-beating returns—like equity mutual funds or NPS. Only inflation-beating options will help you accumulate a substantial retirement corpus.

Remember While Investing (Bonus Tips)
Review your investments every year.
Gradually exit high-risk assets as you approach retirement.
Include your family in your financial planning.

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