SBI Mutual Fund's 'Investment Cafe': No more money crunch after retirement, experts offer this advice
Nowadays, people have many questions about retirement, but the answers are often unclear. To ease this thinking, SBI Mutual Fund launched a special initiative, the "Investment Café," where both ordinary people and experts openly shared their experiences and insights.
A unique discussion unfolded in Delhi's Khan Market, where ordinary people and experts gathered together at the "Investment Cafe," an initiative by SBI Mutual Fund.
Ages, professions, and experiences varied, but the questions were largely the same: How will money be managed after retirement? What is the right investment? And is today's preparation enough for tomorrow?
Retirement is not just about age, it's also about thinking.
During this discussion, Dr. Tina Sharma shared her perspective, explaining that she always planned without any pretense. Her focus was on an emergency fund, cash, and gold, ensuring immediate support when needed.
Meanwhile, retired Army Major Dr. Mohammad Ali Shah said that retirement doesn't mean the end of work. According to him, the greatest investment is in one's body and health, because staying fit ensures an active life.
Women will have to take care of their own financial responsibilities.
In this discussion, entrepreneur Neha Shalini Dua shared an important message for women. She said that many women avoid investing, believing that their family or husband will take care of everything, but this mindset can be detrimental in the future. Every woman should understand and decide on her own savings and investments, whether it's property, gold, or a financial scheme.
Just saving money is not enough
Priyanka Sambhav, editor of Money9Live, gave the conversation a significant twist by raising the question: is simply keeping money safe enough? She explained that today's expenses are not the same as ten years from now.
Inflation gradually increases expenses. Therefore, if investments fail to deliver returns faster than inflation, retirement could present difficulties. She also pointed out that money locked up in real estate is not easily converted into cash when needed.
Way for those with irregular income
During the discussion, Advocate Harsh Singh raised the question of how those whose income isn't consistent each month should plan for retirement.
Experts suggested that solution-based retirement funds are best for such individuals, where a lump sum investment can be made and the fund manager balances equity and debt investments.
Bucket strategy will make planning easier
The 'Investment Cafe' also explained a simple approach to retirement planning, called the bucket strategy. This involves dividing investments into separate parts: one for emergencies, another for future needs, and a third for the long term, where there's room to grow ahead of inflation.
Income possible even after retirement
Experts say that options like SWP are available to generate regular income from investments after retirement. This allows the money to remain invested and withdrawals are made monthly or at specific times as needed. This method is also considered beneficial from a tax perspective.