Four ways of securing financial security easily

Financial security-This factor is the most important one. To live a happy life, you will always need a financial backup. However, this backup starts slowing down as you reach your retirement phase. However, does saving the money secure our future? For a bread-earner, it is important that he/she sort out their priorities and work accordingly. So, for this reason there should be a proper financial planning if we want to achieve a financially stable future. Let us see some best ways to secure your financial future.

1. Stock market

It may sound generic but investing in the stock market can be the best investment you will make. Investing in stocks has paid off for a lot of people yet there is still a chunk that’s afraid of investing in stock. The stocks are liquid, flexible source of investment. It gives you the freedom of investment as you can withdraw your money by selling your stocks at any time. Plus it is less time consuming, unlike other investment options. The stock market can bring you higher returns in a shorter period if we compare it to fixed deposits or savings accounts.

2. Mutual Funds

When you are doing the investment planning you should consider the mutual fund. For a person who is concerned about investing and does not have enough experience mutual funds can be a great option. It is suitable for people of all ages and you can invest according to your financial goals. The SIPs make this investment far more convenient than others. In case of emergency you can redeem your fund whenever you want. Another advantage of MFs is that it does not have a lock-in period like other schemes which again gives the flexibility to the investor to withdraw the money any time he wants.

3. The National Pension scheme

For those who want to save more, the national pension scheme is the best option. It is the government-sponsored pension scheme which helps you save some money. Why is it so popular? Because it is tax efficient, low cost, flexible, liquid and portable to the saving account. For people who are working in unorganized structure, NPS helps them to save money for the future. You can up to 40% completely tax-free of the retirement sum.

4. EPF and PPF

Employee provident fund and public provident fund are two schemes that are essential for a person for his post-retirement life. PPF and EPF are considered the secured investment options with guaranteed returns at 8% and 8.5% respectively. If you start investing a small amount, it will give you great returns at the time of your retirement. EPF ensures people with growth during the maturity period. On the contrary, PPF helps people that are financially weak as it has a deposit of Rs. 100 only.

Secured investment planning is a challenging job but also an important one too. There should be adequate sum after your retirement for the future of your family. These schemes will help you not only to save money but also to invest and get higher returns. Remember, just saving will not help you; you have to invest it in order to get optimum returns.

About This Author

Shaheen Shaikh http://www.adrclinic.co.uk Joined: April 29th, 2018