Retirement Planning by Age 20-30-40

 Start planning for retirement in your 20s 

When it comes to saving and investing, the sooner the better. Starting young can give you a head start and also allow you to experiment with different types of products. For example, at the age of 20, you still have  four decades to correct your bad financial decisions. Equities may appear attractive to young investors because of their long-term return potential.Investing in mutual funds can be a good option for retirement planning. Market-linked returns and the power of compounding help multiply the corpus over time. It can help fight inflation. If you can't make a global investment, get a SIP. The habit of saving is instilled.Be sure to diversify your investments across different products to benefit from different risk and return profiles. 

Start saving for retirement at 30 

It's not too late to start saving for retirement. purse together. You can afford to take some risk, but not as much as you did in your 20s, considering your responsibilities  have increased too.Aside from an emergency fund with at least three months of spending, you should put about 50 percent of your savings into a retirement fund. This can be a mix of fixed income investments as well as stocks or mutual funds in India. SIPs are still a good way to think about it. 

Start saving for retirement at 40. 

Better late than never.After the age of 40 or 50, you have much less time to plan your retirement. This is also the time when you may need to make important financial decisions such as B. the higher education of your children or the marriage. However, that doesn't mean  you should ignore your retirement. Start cutting  unnecessary expenses, and make sure to allocate at least 50 percent of your retirement savings  (more if you can manage it).However, you cannot afford to lose too much money right now. Balance it  with investments in bonds, fixed income and liquid instruments. Also, assess your wealth and see how it fits into your retirement plan. Secrets of a Smart Investor Smart investors have a few tricks up their sleeve that can help them retire rich.

Here are some smart saving tips: 

Start as soon as possible. Start saving for retirement now. Diversify your investments. Don't put all your money in one bucket, as tempting as it may seem.Even if you're a risk-averse investor, put some money in mutual funds so you can take advantage of compounding. Save your rewards instead of spending them on vacations and impulse purchases. Increase the amount you invest and save each year, along with the increases you receive.