Please recommend a good Retirement Plan for a 43-year-old male, planning to retire by the age of 55 years. A one-time lumpsum amount as investment is preferable.
- Dharmesh Bhayani
Do you have retirement plans from insurance companies in mind? We do not recommend insurance products for investment purpose. We like to keep insurance and investment needs separate. Products with insurance and investment elements in them mostly fails on both counts: they offer very little insurance cover and they are also not great investment products.
We ask investors to buy a term insurance plan to cover their life, as term plans help individuals to buy a very large life insurance cover by paying a small premium. We also ask our readers to invest in equity mutual fund schemes to meet their long-term financial goals like retirement, child's education, etc.
In your case, you can consider investing the money in a staggered manner in one or two diversified equity schemes. Take the money out of equity a year or two before your retirement (or before if you meet your target corpus) and park it in a safe avenue like a bank deposit or liquid scheme. This is to ensure that a sudden volatility in the stock market doesn't have an adverse impact on your retirement plans.
Here is a list of best diversified equity schemes.
This article was originally published on November 24, 2015.
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