How to build a retirement fund?

POSTED BY suvarghya ON January 21, 2014 11:53 am COMMENTS (5)

Hi,

After reading the article on retirement planning, I wanted to know about techniques/policies through which I can create my retirement fund.

My requirements are:

1. I will be saving a fixed amount every month

2. The corpus will be available in a liquid form (easy withdrawal in case of emergencies)

5 replies on this article “How to build a retirement fund?”

  1. ashalanshu says:

    Dear Suvarghya, from your query, what should i understand that you are going to invest for retirement but it should be liquid to withdraw as and when you feel a need so? Kindly elaborate your query.

    Thanks

    Ashal

  2. Sibin says:

    First create an emergency fund to handle emergencies, then plan for retirement, if retirement investment is too liquid you may find excuses to take the money for other purposes (by calling it emergency :))

    1. Pranshu says:

      Dear Sibin,

      Completely agree with your answer…may I know bit of detail to start retirement plan by investing maximum Rs. 2000 monthly for next 20 years.. what is the policy and how much money I ll get after 20 year..
      Best Regards,
      Pranshu

      1. Sibin says:

        Please refer Sumit’s reply

  3. Sumit says:

    For long term wealth creation (like retirement planning), there is nothing better than equities, and investing in mutual funds are safer than direct equity for regular investors.
    And saving a fixed amount every month –> investing a fixed amount in mutual fund through SIP is the best option you have.
    But my suggestion would do not mix retirement corpus and emergency fund together.
    Investing for retirement planning should not be touched, and for ‘easy withdrawal in case of emergencies’ –> Create an emergency fund (3-6 months expenses) that you can keep in bank FD/Debt fund for easy liquidity.
    To know how to build an emergency fund read below:
    http://www.behealthyinvestor.com/where-to-park-my-emergency-fund/

    For retirement planning you should create a mutual fund portfolio with 3/4 fund depending on your total amount, and goal amount etc –> combination could like following:
    1 large cap, 1 large-mid cap, 1 small-mid cap and 1 balanced fund.

    But decide your asset allocation first (in what proportion you want to mix different asset classes – equity, bonds, fixed income, gold, cash etc in your portfolio), know more about asset allocation in below:
    http://www.behealthyinvestor.com/asset-allocation/

    Thanks
    Sumit

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