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Where to invest for retirement?

WHOEVER said variety is good for consumers had no marketing sense.

August 04, 2011 / 03:55 PM IST

WHOEVER said variety is good for consumers had no marketing sense.

An experiment with jams showed that when a customer had six options to choose from, the conversions were much higher than when he had 24 options to choose from.

With so many options, the consumer gets paralysed with the burden of selection. Is this what is happening to retirement planning? Is that the reason why sensible people are procrastinating?

There are various reasons why retirement planning has become imperative today: longer life span, increased medical costs, inflation etc. Even so, there are just a few takers.

Why don't you look at the options available?

Equity: Traditionally discouraged as a retirement planning tool, it could give your investments a boost if you start early.

Insurance: This one is popularly used for retirement planning. Experts say it should only be used as a risk cover, and not as an investment tool.

Provident Fund and Public Provident Fund: The all-time favourite option. Our grandfathers believed in these low-risk schemes implicitly.

Fixed deposits: Safe and secure, but may cower under inflation with their low returns.

Mutual funds: Preferable one, this. There are the professionals whose experience and expertise will come handy.

Property: Totally ever-appreciating asset in the long run, especially with the real estate boom. Small catch: the liquidity concern. Not everyone has money on hand to invest.

first published: Aug 4, 2011 03:52 pm

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