Tips for retirement planning

Here are some time-tested tips to help you reach your goal of a secure retirement.
Try automatic options
Schemes such as systematic investment plan are most convenient way to invest. Once you’ve enrolled, the money is deducted from your paycheck and you’re never tempted to spend it on something else.
Monitor your progress
Every one to three years, check your progress towards your retirement goal. Ask yourself these questions: have my needs changed, have circumstances changed to impact my plan, has my risk appetite changed, have market conditions altered to impact my plan, has my plan performed poorly
Don’t change your plan too often
Markets move up and down over short periods, and you could miss important gains if you overreact to short-term changes. Don’t keep changing your asset allocation too often. Stay the course, even if you think you’re ahead of schedule.
Expect some losses
A portfolio of stocks and fixed assets will exhibit short-term volatility. Avoid knee-jerk reactions. If you have trouble accepting short-term setbacks, you should increase the portion of your investments in more stable options,
Think in terms of overall portfolio

Don’t evaluate individual funds in isolation. Think instead of your total investment portfolio. Diversification helps smoothen the overall investment performance. The reason for holding a variety of assets is to ensure that gains from one asset offset short-term losses in another.

Don’t spend it before you retire
You may encounter situations where you are tempted to withdraw your retirement investments. Try to refrain from such withdrawals since it will derail your plan and you’ll have a hard time replacing the lost savings later.

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