It’s never too early to think about Retirement Planning


Life is uncertain, death is certain.In a busy life, we never get time to think abt yourself. We strive hard to earn money and live a better life. But we are trapped in a rat race, where we are entangled in a vicious circle. We never thought about our retirement or how will we pass on our golden years.Last week, I was called for Reliance Meet by Blogadda. I felt I was very fortunate that I got to attend the meet. Reliance Capital Mutual Fund launched “Reliance Retirement Fund”.

We earn and spend most of our savings and if left we make sure we get good returns out of it. But nobody planned for Retirement. The very first question will come is “When”,”How”, “Why”.  It is the most important financial goal plan for every family. The reason is taking care of family and not to be dependent on anyone.  There are many cases where father would say – My children will take care of me”, “I have enough savings”  Most of the people invest their savings in PPF, National pension scheme, Insurance, Fixed deposits. But now the Govt has been sensitive to expand this portfolio ans allow retirement funds to invest in Equity oriented funds. But when you have retirement fund you don’t need to be dependent on your children.The online survey reveals that Retirement planning is the most financial goal ahead of other goals including buy a home, children’s education, marriage. It is most important for 30-40 and 41-55 age group.

Reliance Retirement fund  has two distinct portfolio – Wealth creation & Income Generation

Wealth creation – It mainly focuses on Equity-oriented for accumulation (65-100% in Equity. Ideal for Youth who are ready to take the risk

Income generation – It mainly focuses on Debt-oriented for distribution. 70-95% in Debt & money market securities. 5-30% in Equity.

The key features of this fund  –

  1. Flexibility to manage investments
  2. Auto Transfer to move from accumulation to distribution

Tax Benefit – You get up to 1.50 Lakh per year u/s 80C/(2) on the amount invested in the fund.

Ideal way to invest for Youngsters:-

  1. Set your goal & begin with Wealth-Oriented scheme
  2. Set up SIPs(Systematic Investment Plan) and step up option
  3. Add lump sum along the way
  4. Auto Transfer to income generation scheme before retirement
  5. Continue SIPs until retirement
  6. Set up auto SWP (Systematic Withdrawal Plan) from Income generation on retirement

You can put lump sum amount  minimum of Rs 5000/- or in SIP. SIP starts as low as Rs500 and in multiples of Rs 500/-

It has got Salary ADDvantage Facility which means  Employers can sign up to offer employees a convenient way to invest in Reliance Retirement fund systematically by opting for deduction from their salary.

I learned a lot after this wonderful session. I have started my retirement planning. What are you thinking? Go ahead and Start planning for your retirement, secure your funds and enjoy your 2nd innings and be financial content.


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