then it does not matter whether I work or not
It is easy to get hold of calculators or if you can do a bit of excel you can see for yourself what you need to invest now and on an ongoing basis. The best thing to do is to use something that is some sort of a comprehensive calculator or say a financial plan. There are online financial planning websites that can also help you with such calculations.
Thereafter study all asset classes or product categories and make a list of which one has delivered maximum returns over the last 5, 7 & 10 years. Count your liquid assets and estimate how much of those you can use now. Estimate what your monthly savings are likely to be and then deploy them regularly. Thus you would have made a start to planning your life; eventually over time you will land up having a life strategy. It might be difficult to start off on your own but over time things you will have a better understanding of things.
Here are some thumb rules to help you start and avoid basic mistakes:
* If you pay anything in excess of Rs 50,000 p.a. for life insurance — most likely you are burning your money or you definitely have the wrong products
* To plan for retirement never ever invest in pension policies
* If you are earning a post tax rate of return equal to less than inflation again you are wasting your money
* Eject on advice to things you don’t understand but do self learning about it as you should not miss out on anything important
* Always keep about 50 per cent of your money into wealth creating investments i.e. in today’s terms investments giving a post tax return of at least say 10-12 per cent
* Finally if you choose to work with someone then ensure that you choose someone who is ready to answer your questions and also has sensible answers to your questions.
—Author is Director, Transcend Consulting