How to feast, not fast

In our previous segment , we delved into tailored investment strategies for individuals aged 50 to 60. Now, we shift our focus to the financial considerations and model portfolios designed specifically for those in the 60 to 70 age bracket. Model portfolio for a retiree between 60 and 70 The grass is green, and the sky is blue for Zainab Ali, 60. Recently retired, she moved back to her ancestral home on the outskirts of Hyderabad and received a warm homecoming from her childhood friends and relatives. What's more, she built a sizable retirement kitty of Rs 1 crore during her professional career. Essentially, she has earned herself a slice of heaven in her silver years. But can she guard it? Leave aside the scammers, land sharks, unscrupulous relatives, and the whatnots, there is a quartet of threats waiting to steal her paradise. To draw a food analogy, these four are like junk food, poised to nibble into her finances (and peace of mind). So, before ill luck strikes her, let's identify the dangers and nip them in the bud. As baffling as it may seem, a longer lifespan can actually work against Ms Ali (or you, for that like the allure of instant noodles. Although instant noodles gives you instant gratification, it triggers cravings for more unhealthy indulgences. Similarly, the smile on our faces gives way to anxiety when the prospect of spending 20 to 30 years of life with no income eventually strikes us. In other words, extending lifespans and retirement age of 60 means most of us will live multiple decades with zero regular income! Inflation is another threat. It erodes your purchasing power significantly. Assuming inflation grows at 6 per cent per annum, your expenses will double every 12 years. If Ms Ali has a monthly budget of Rs 40,000 at 60, the same expenses would balloon to Rs 80,000 at 72 and a staggering Rs 1.6 lakh when she is 84. Medical expenses come next. They can bite a major chunk of Ms Ali's (and yours) monthly budget after retirement. RBI data suggests that health-related costs have stayed higher than the overall inf