Common mistakes you should avoid in early retirement planning

Planning an early retirement and not knowing where to start can be a time-consuming process. What consumes even more time is making the same mistakes that you could have avoided by knowing what others did and how things work. To help you kickstart your retirement plans, Finwise’s co-founder, Prathiba Girish joins Sakshi Batra to answer your questions.

Bapa Saha: What should be the equity allocation after one reaches the age of 60? Should one choose a balanced advantage fund, direct equity fund after 60?

Girish: So first of all 60 is a normal retirement. So for normal retirement, for example, 60-90 years of age, you will be spending 30 years in retired life. If you are 60 it does not mean you can run away from wealth-building assets like equities. For retired planning, we use a marketing strategy, from 60-65 years of age you can invest in safe liquid hedge funds, fixed deposits. For 65- 68 years of age, you can take some risk, you can invest in balanced advantage funds. After 68, you must look at a well-chosen portfolio for retired life.

Watch the full video to know more…