Avenues For Achieving Retirement Goals
Different people use different types of assets in the investment process at different points of time in the retirement planning process. Here are details of a few and the way in which an individual can use them effectively.
People use equities in the retirement planning process to provide the necessary amount of growth and benefits over the long term. The benefits of this asset class will be present and clearly visible only when there is a holding of the assets for a long period of time.
Debt is another important component of the portfolio of the individual. It is that part of the total investment amount that will yield steady returns and provide an element of stability to the portfolio. Even though this might not derive the entire returns of the portfolio or seem to be no match against the returns of equity, its role is very important in the overall scheme of things for the individual investor.
Most people prefer to form the core of their retirement investment corpus with income-earning assets. However, there is another asset that is commonly held by people. This asset is real estate and it forms a big part of the safety element for people. Many people also consider this a necessity because when they retire their own home gives a sense of security few things can match.
Many people would just not like to have some amounts as an investment in financial assets when they retire. For them, it is also important to have some real assets to show the world. This is fulfilled by gold. Gold is a common asset class present in the portfolio of Indians.