Fixed income while building retirement portfolio
Don't ignore fixed income while building retirement portfolio Retirement planning is still a developing field in India. In the older days, retirement planning was not a big concern on two accounts – first many organised jobs offered pensions post retirement, which de-risked individuals from planning themselves and secondly the presence of the family safety net. However, both these are gradually fading in importance and, hence, for individuals who are currently working, there is a pressing need to start thinking about planning for funding their post-retirement expenses. A retirement portfolio is a function of two life stages – wealth accumulation and spending phase. During the wealth accumulation phase, active earnings (earnings from employment or business) take care of expenses and a portion of this income should be saved to build a retirement pool. The earning years are the accumulating years and proactive planning is key to harnessing the power of compounding. Given the...