Most of us generally do not bother about savings and investment in early part of our career, but when we mature, by 40s, we realise the need to manage our finances.
By this time, we are almost in the middle of our working life.
Bank Bazaar says, "By 40s, you also have a clarity about your financial objectives and responsibilities. You still have 20-25 years to work, save and invest if you started working in the early 20s and plan to retire at 60."
Let’s take a look at some smart moves to plan investments when stepping into the 40s, according to BankBazaar.
Time To Assess Retirement Corpus Target
Most of us have drawn a retirement plan along with the inflation rate, however, by the time we reach the 40s, the inflation rate would change considerably.
Suppose, your objective was to build a corpus of Rs 50 lakh considering an average inflation of 5% p.a. However, this average inflation actually changed to around 7% and it brought down the money value by an extra 2% over the expected inflation rate.
This means that you should target a bigger retirement corpus by making appropriate changes in the investment portfolio.
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