In a note via e-mail sent to its customers, Quantum AMC has suggested a way forward for dealing with the impact of covid 19 on your retirement plan in 5-points.
This is considering that in due time from now there has been brought a vaccine to fight with the pandemic and the fear of dying from coronavirus no longer remains.
5 Point Plan For Retirement Planning: Quantum AMC
Also, the asset management company suggesting by putting in place the plan suggested, investors will be better placed when at the end of the exercise. “Health issues aside, Covid-19 has wrecked the financial plans of many, probably you too. And if you dismiss this now, you could jeopardize your retirement plans irreversibly,” says Quantum AMC in the note.
This lockdown has even been a boon as any unnecessary expenses can be held back such as dining, travel expenses etc. and hence saving on it can be put to investment for accumulating a healthy retirement corpus.
Here you need to accept that your pre-covid investment strategy might not serve you after the pandemic is washed out. This is especially true in case you had to face income cut or job loss. Such unprecedented times now make us understand why it is important to have not just one source of income such that an erratic incident can be dealt without much of problems.
• You can also target at reinstating your income to pre-Covid 19 levels. Also, you can with the help of your family members can take on some of hobbies to earn that extra money that can then be put for investment.
As the Covid 19 pandemic has really led us all in a tough situation both financially and emotionally, one can surely renegotiate on fronts such as rent as well as EMIs. Also, the rate cut by a good percentage makes this possible. This shall also be possible and here you need to call your bank and negotiate on the EMI front and then the savings thereupon can be channelized for retirement.
As work from home is the new norm now for most of us, there has been even be provided ample time now to reassess your portfolio in a more holistic way. “Check if it’s in line with what you had planned. If not, now’s the time to make corrections,” alerts the AMC.
And as per your financial goals, you need to ensure you have parked your funds in different assets. Also equity needs to be lapped up taking into account that while there is sharp rise at one point in time there can be even be a sharper decline.
” If you are someone who’s in the early phase of their career, you can quickly recover from the Covid-19 setback. All you may need to do is just save more or hope over time you can grow your income faster”, says Quantum AMC. Also it is suggested if you are nearing close to your retirement or financial goal, you need to transfer your funds from equity oriented portfolio to
“If required, consider delaying your retirement by a few years in order to achieve your desired corpus. This is the hard truth. But then it’s better to be planned well than to get hit by an unpleasant surprise on the cusp of your retirement”, says the AMC to conclude.
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