Stage 4: The Accumulation Years 🙁 55-65) yrs
Accumulation years in life are very little. You need to save more because your non working years are going to be more than your working years. so you need to increase savings at every day of your working life.
Never keep your money limited to same kind of investments. Spread across various instruments like Insurance, Investment, Pension Fund, Gold funds, Mutual Funds, Government bonds, Bank deposits etc.,
80% of people invest in same kind of investment and wait for the market to appreciate, but waiting for long may not help you in achieving your goal. Keep your investment increasing every year at least by 5% because inflation is going to be near 4 to 6 % . To beat inflation, investment rate should be double of your inflation rates.
For every investment , solid foundation is required. After insuring yourself adequately with LIC of India. The best formula of Investment is you should not lose your money.
Things that happen at this stage:
- This is when your retirement planning should kick into high rear.
- These should be the years of peak income. College bills are wholly, or mostly, past-meaning there is more money to be saved and invested.
- Years of compounded, tax-sheltered growth in retirement savings account are paying in these accounts reach very impressive levels.
Potential trouble Spots:
- Jumping the gum on retirement spending .The accumulation of assets in retirement savings accounts looks so temping, that it is easy at this stage to lose control and start spending your nest egg prematurely.
- Not doing your late-stage retirement planning early enough to make wise decision -making .Investigate communities where you might want to live in retirement at this stage -rather than buying and moving much investigation after you have retired.
- Taking early retirement without investigating how much you lose in pension and other benefits until the normal retirement age.