ommon Mistakes to be avoided in 60’s
As the last part of the series, we would like to highlight some mistakes that one should be careful about in their 60s. We have seen in the previous parts about the common mistakes usually committed by people of different age brackets.
60’s is known as the Golden Period since it’s the retirement period. It is also known as the Second Innings of Life. This is because by this age usually one’s responsibilities are fulfilled and its now time to have some leisure time for yourself. However, it is necessary to be cautious about your finances and prudently utilize your hard-earned corpus as this is what is your main source of income to suffice your post-retirement needs. Retirement is one such goal in a person’s life that doesn’t have the provision of getting a Loan. Considering the same some mistakes to be avoided in the 60s are:
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Not investing based on Asset Allocation: People in their 60s are usually conservative when it comes to investing and tend to invest only in instruments that they have been comfortable with in the past. One should understand that past returns always do not guarantee the same future returns. It has been seen that traditional products like FDs which used to give high returns are now dwindling in return terms. Thus, this mistake should be avoided of investing based on the past and should look for newer avenues. One should focus on Asset Allocation based on one’s risk-taking capacity, age, inflation, and other factors and choose among the investment options available.
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Not beating inflation with investments : The main purpose of investing is that our money grows and can beat the inflation. Inflation refers to the rise in prices of goods & services over some time. It is seen that retired citizens still prefer the traditional investment avenues such as Post office or Bank FDs. Over the years these product returns have fallen and are not even in line with the inflation rate. Your retirement corpus should be invested in such a way that it beats inflation. Only then will your corpus grow and be able to live your retired life peacefully.
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Emotion Based Decision : It is usually observed that the older generation tend to spend a lot on their children & grandchildren usually believing that their kids will take care of them. While this might be true in most cases, it is always advisable to be independent and spend keeping in mind their limited corpus available for the retirement age.
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Sharing Confidential Information: It is repeatedly informed by banks through advertisements to not share any card details and passwords with anyone. This can lead to fraud with bank accounts which are on the rise these days. However, despite repeated warnings, we do hear a lot of cases where the older generation has been scammed because of sharing a password. This is because many of them are gullible and not too tech-savvy and thus end up trusting people with their confidential data. One should always keep note of this and share their data only with completely trustworthy family members, if necessary.
How to Secure Financial Freedom in the 60s?
- Take the help of a trusted and experienced financial advisor who can help you with managing your finances and provide valuable inputs.
- Review your health insurance and continue the same. With age, the medical conditions also change so reviewing and increasing health insurance cover, if necessary.
- Not be swept by attractive returns or IPOs and take a 360-degree view before investing hard-earned money.
- Update all your details in bank-like nominee etc. Make a will and do prudent estate planning .
- Keep a check on all assets and update the beneficiaries, nominees periodically.
Conclusion :
60’s is an age when one wishes to live their passion, give back to society and live a meaningful and occupied life. Being aware and in control of your expenses as per your needs provides you the peace of mind at this retirement phase. Thus, try avoiding the above mistakes to live a fulfilled life. We at Nivesh Ki Paathshala would be happy to help you out with your queries & doubt.