Retirement Planning and How to Invest- A Complete Guide

retirement and investment planning

For sound financial planning, retirement planning is one of the most important parts of it. You should start planning for retirement early and should keep a portion of your salary as funds to invest regularly so that you can have a comfortable and easy retired life. All your future expenses after your retirement will be covered by the money you save when you will not have any consistent source of income.

Junctures of Retirement Planning-


One should always plan for their retirement so that they can have a sturdy retired life. Here are few stages of retirement planning:

  1. Accumulation- This is the stage where you need to save money as much as you can for your retired life. This stage is comprised of four important phases of your life:
  • Your early education phase of your life.
  • Your career phase.
  • Your marriage phase.
  • Raising your children phase.
  • Till your children become self-sufficient.

You can achieve your financial goal if you successfully save during all these phases of your life.

  1. Allocation- Only saving your money is not not enough for having a comfortable retired life you also need to invest your money somewhere which will bring you high return assets which will increase your overall income. You can invest some of your money in assets which will bring you high profit and the remaining money you can invest in some risky asset which will open high risk return probability. 
  2. Distribution-  You will reach this level after all the other levels and you will be tired. You will need to collect money from the ways which you opened during your accumulation phase. This level’s success depends on how well you have saved during your accumulation level.

Plan for Future Expenses-

A group of people sitting at a table
  1. Understand Expenses- You need to first understand expenses in order to save from your income. You should look thoroughly into your spendings and you should decide which are important expenses necessary for the normal functioning of your life. You should figure out how much you will require for any future medical expense and you can decide to cut some expenses which are not that important.
  2. Evaluate retirement corpus- Many people fail in their retirement planning because they overlook the importance  of corpus and the possibility of inflation. You must determine different sources to double your investments like mutual funds etc.

Best place to Invest-

One of the best places to invest is the National Pension Scheme.

This scheme is supported by the government for the people of age group between 16-60 years. You need to pay 6000 per year and you can pay in installment basis too.


It is best to save as early as possible because the early you save, you will have more money after your retirement. It is not good to postpone savings.

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