A Guide to Income Investing for Retirement
Retirement is one of the major life goals everyone needs to have a plan for. Most Indian expect to retire by age 60. Combine that with a life expectancy of 80 years(and many living much longer than that), and the average Indian needs to save for at least 13 years of retirement.
While PF can help cover the cost of living in your golden years, the PF paid out an average of only 35,000 per month in 2020. If you’re planning on doing more than just scraping by on an annual income of approx. 10 lakhs, investing for retirement is key.
Whether you’re new to income investing or looking to expand your knowledge, our complete income investing guide will walk you through:
Continue reading to learn all you need to know to build a retirement portfolio and prepare for your future.
One in three Indian’s don’t have specified Retirement Planning offered by their employer. But even those without workplace options should take advantage of the opportunity to start investing for monthly income after they retire. Unfortunately, a Bloomberg studyfound that 20% of workers say they don’t think they’ll ever be able to retire. This statistic is worrisome but understandable when you consider that most seniors will need some type of long-term care that can cost thousands of dollars per month and is not necessarily covered by Medicare.
The best way to be able to retire comfortably is by building a retirement portfolio through income investing sooner rather than later. There has long been an assumption that investing for retirement is only the concern of older individuals, yet there are several advantages for those who just entered the workforce.
A robust portfolio not only sets the stage for a comfortable and secure retirement, but it also helps build wealth and protect against inflation. Building wealth through investing allows you to be prepared in case of an emergency whether it be medical, sudden unemployment, or major life changes.
Additionally, dividend income, quality bond investing, mutual funds, and other forms of investments allow you to earn a passive income to supplement your salary. Choosing the right assets to build your portfolio depends upon your financial goals and the amount of risk you can withstand.
The most common ways to build a retirement portfolio are through IRAs (individual retirement accounts). Each has certain tax advantages, and both can be part of your income portfolio as you prepare for your post-career life.
But there are numerous ways to invest for monthly income upon retirement, IRA, a regular investment account, or a combination of them all. Ultimately, it comes down to personal circumstances and when you decide to begin preparing for retirement.
In our complete income investing guide, we’ll discuss five opportunities that can help pave the way to the good life in your golden years and show you how to earn income on your investments.
