Home Finance Here’s how to make life financially independent on your 70th birthday

Here’s how to make life financially independent on your 70th birthday

Here's how to make life financially independent on your 70th birthday

At the old age, there are many challenges an adult faces regarding his health, emotions, family, money, etc. However, you can effectively deal with your financial situation if you start to plan at an early stage of your life.

Financial independence is vital once a person starts becoming an adult. If you don’t outline plans for your old age, then you have to remain dependent on others just like children, and this isn’t a good idea. Don’t let this happen and use your time productively to achieve the status of financial independence.

Many senior citizens are entirely unaware of how to proceed further, therefore here are some tips for building a healthy post-retirement plan.

Fixed Deposit Schemes for senior citizens:

There are exclusive benefits of being a senior citizen as it can end up giving you more subsidies and discounts on utilities than what any adult under 60 gets. A fixed deposit scheme for a senior citizen accrues higher rates of interest than a general fixed deposit scheme — a minimum investment of Rs.

Twenty-five thousand can fetch an interest rate of around 8.10% in top banks and leading financial institutions. Hence, it is a decent option to invest in a senior citizen fixed deposit scheme. Compare the interest rate of various banks and financial institutions before spending your money. Also, a fd calculator monthly interest can give a good overview of your investment plan. To know more about fd calculator read below.

Real Estate:

Another good alternative is investing in real estate. Real estate is like Gold; it will increase the returns in the future if you spend for a longer time. It is better to invest in a property at a posh locality of your city, where people are willing to reside and pay more for it. You can trade it at a higher price in the future or can even earn a fixed monthly rental from it. Also, if you can’t purchase a new property, you can think of renting a portion of your house.

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Health Insurance schemes:

What will you do when you don’t have enough financial resources to meet the expenses of your frequent hospital visits. Besides, the chances of medical emergencies are on a higher side once your hair starts greying. There is a constant rise in medical inflation, and hence, it calls out for a need for health insurance schemes to get your conditions fixed. Health insurance provides you with cashless treatments at leading hospital chains and saves hefty money as well as your reputation. Get your spouse covered for the same as well.

Life Insurance scheme:

Although the burden of dozens of responsibility gets down from your shoulders at the old age, the responsibility of your wife or spouse is there. Life insurance is another investment that is crucial to get your wife/spouse secured for a lifetime. This ensures economic freedom to your spouse even after your absence.

Mutual Funds:

Another alternative to make an investment and get lucrative returns at old age is the mutual fund policy. One can look for different mutual fund investment options and compare the rates and benefits of different systems. Even when you relax at home after retirement, mutual funds provide you with a source of alternative income. It is better to take advice from a mutual fund investor before proceeding with such schemes.

There are numerous other ways where senior citizens can invest and reap benefits and rewards accordingly. Senior citizens should contemplate such schemes and invest in any of them by checking their affordability.

Diversification of funds

We are keeping all the money in savings won’t help. The best ratio we can follow will be spending 30% of income and save the remaining 70%. Not only savings but rather investing it progressively. Also, let us follow the philosophy of don’t put all eggs in one shell. This means developing a diversification strategy will be the best. We can distribute the money in the form of PPF, Fixed Deposits, or NSC. A SIP scheme will be most helpful in the case of the mutual fund.

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Side Hustle

Along with different investing plans. Creating a second source of income is considered to be a viable option. This will be very helpful as we can get rid of the financial crunch. There are various part-time income opportunities such as teaching, earning money through your blog, or even a rental income that can be a good source. You could also do some vocational courses.

Also, Equity Investments are considered to be the best form of investment plans. Such a program can multiply investments. I am starting early; planning correctly can help to endeavor a more significant amount of wealth.

Note: Once the investment plan has been drawn, keeping a track record is very crucial. Short term volatility can be seen. Therefore, maintaining flexibility is very important.

Managing RISK

As you would be making a substantial investment. Taking risks is good, but managing it is equally important. Also, it is essential to create a separate contingency fund to prepare for the hard times. You must have emergency funds for health, job loss, repair, and innovations. A reserve for six months is to be created, keeping in mind when there is not any inflow of money.

Being financially independent is a great feeling. However, it requires a lot of commitment and planning to achieve your goal.

Include more of Equity funds

Equity Investments are considered to be the best form of investment plans. Such a program can multiply investments. I am starting early; planning correctly can help to endeavor a more significant amount of wealth.

Let us look at the hypothetical and philosophical areas.

You are what you think. You can divide your entire goal into ten years. Imagine yourself and see how your mirage will look like. The present now and the future you have to reach. You don’t need to get scared with 65 approaches. Your post-retirement life can be excellent. Shift the gear and get on the ride.

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Envision and plan your dream life. Retirement is the last phase of life, and why not make it extraordinary. Have complete faith and compassion. No, on can stop you from achieving your dreams.

fd calculator monthly interest

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