How to plan for retirment due in 2 years from now?

POSTED BY bighead_bob ON March 19, 2015 12:54 pm COMMENTS (2)

Hi,

My father is getting retired in August 2016. He hasn’t planned for his retirement so far in terms of having a corpus amount to take care of monthly expenses.

Would it be a good idea to invest a good amount in equity SIPs for next 2 years targeting the required corpus?

Thanks

2 replies on this article “How to plan for retirment due in 2 years from now?”

  1. ashok says:

    If you are going to get pension which is adjusted against inflation from time to time ,it is very good
    If it is not the case keep an amount in FD depending on your monthly expenses requirement and invest rest surplus in good MF schemes for long term(10-15 years).this will protect value of your money(as you will get better returns than inflation)

  2. Disclaimer first : I am not retired and will not be retiring in next decade. Hence take this info with caution.

    It is good that you started planning for retirement in advance. Congratulations. First thing one can do in such situation is take stock of the finances. Please write down all your assets and liabilities. Get the retirement benefits from your company in detail. How much you get in hand and how much in monthly payout etc. This will help in planning your future.

    Try to get the documents of all assets and liabilities and make them joint with your wife.

    Once assets and liabilities are jotted, note down responsibilities, (say marriage of daughter) and allocate some money for the same. Please arrive at net corpus and net monthly income after all these allocations.

    Then comes the requirements post retirement. Please estimate the monthly requirement post retirement. Generally it will not change much. From pervious exercise, please check if the return on corpus and monthly payout meets the requirement. If not you can either increase your income by taking additional job or reduce expenses.

    This is a general plan. In addition, please meet a CA to understand the taxable and not taxable elements of your severance package so that the inputs can be utilized to your advantage in future.

    Trust this gave some insight on your query.

    Wish you all the best.

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