Saturday, July 20, 2024
Advertisement
  1. You Are At:
  2. News
  3. Business
  4. Personal Finance
  5. Want happy retirement? 5 tips to build wealth to achieve financial freedom

Want happy retirement? 5 tips to build wealth to achieve financial freedom

For accumulating funds for retirement, there are multiple financial instruments available in today's time like mutual funds, National Pension System (NPS), PPF among others.

Edited By: Nitin Kumar New Delhi Updated on: September 27, 2023 23:14 IST
Business, retirement
Image Source : PEXELS An old man counting coins.

 

Having a proper retirement plan gives you the opportunity to receive income from different sources. It is one of the crucial aspects of attaining financial freedom. For accumulating funds for retirement, there are multiple financial instruments available in today's time, like mutual funds, the National Pension System (NPS), and PPF among others.

Building a corpus for retirement requires a plan. The thumb rule is to start by investing a small amount every month and increase it gradually. According to Sooraj Singh Gurjar, founder of Get Together Finance (GTF), an ideal retirement portfolio should be a diversified one.


"The best and safest way to have a financially secure retirement is to have good investment plans. There is a famous saying: 'A wealthy man is a man who earns even when he sleeps'. Having a consistent income source is important to build a wealthy future. But investing money in the right place is as important as having a passive source of income," he said.

Let's discuss five important points to consider for financial freedom and a happy retirement:

1. Start investing now: It goes without saying that a person should start investing from the start of employment to reach financial freedom. "Investing should never be an option; in fact, it should be an obligation. No matter how much a person earns, he or she should always take out a fraction of that amount and invest it for the future and retirement," Sooraj said.

2. Power of Compounding: The power of compounding works by growing an investment exponentially. Early investments lead to compounding returns as the value of money rises over a period of time, leading to a contribution towards the generation of wealth.

3. Debt-free: He said that prioritising becoming debt-free is key to investment. It will lead to increased savings. Having outstanding debt for a long can act as a roadblock to achieving the target of financial freedom. "Paying off not only brings peace of mind but also leads to greater savings".

4. Invest in equity: For retirement planning, investing a portion of money in equities can generate higher returns than other traditional investment options. "Invest money in equities; mutual funds help in steadily building wealth," Sooraj said, adding that investing in equities can also help in beating inflationary pressure as they deliver a higher rate of return.

5. Dividend stocks: Investing in stocks that pay good dividends on a regular basis can also multiply the overall return. The market is full of good dividend-paying stocks that pay good income regularly. In fact, investing in stocks that pay out dividends is considered a strategic way to ensure a reliable income and build wealth.

 

Also read | Sensex and Nifty close slightly lower; Nestle and Tata Steel show gains

Also read | Sebi extends deadline to add nominees for demat account holders till December-end

Advertisement

Read all the Breaking News Live on indiatvnews.com and Get Latest English News & Updates from Business and Personal Finance Section

Advertisement
Advertisement
Advertisement
Advertisement