Can you imagine that it is already 2021 and the world still has no perfect treatment for COVID-19? Although the best scientists of the world are trying their best to invent an effective vaccine to end this pandemic situation, yet things are scary currently in 2020. Quantum AMC motivates its investors to deal with the after-effects of COVID-19 on your retirement plans.
Apart from health issues, COVID-19 has wrecked all sorts of financial plans and it has also probably wreaked havoc into your life. If you don’t pay heed to this issue right now, you may harm your future retirement plans and also your retired life. So, here are the few things you can do to rescue your retirement from the spell of COVID-19.
- Cut down your expenses and invest in yourself
The AMC wrote a note to its investors where it recommended them to curb expenses wherever it is possible. And in case you’re a laid off employee or you’ve gone through a pay-cut, this is especially true for you. The country-wide lockdown is rather a boon as it gives you more opportunities to curb on eating out, shopping, regular commuting to office and traveling. Utilize this time wisely so that you can cut down on the vital expenses. Remember the more you save today, the more you can invest.
- Restructure your objectives and add in more ways of earning
You have to accept the fact that the investment strategy that you had pre-Covid won’t work now. In fact, if your income has diminished during the lockdown, this is even truer in your case. So, instead of bogging down, you have to look forward to reinstating your income to the previous levels. Have a discussion with your spouse about how you both could work towards adding new sources of income. You could probably monetize your hobbies and skills somewhere.
- Negotiate with banks and lenders about your EMIs
Over the past few months, the interest rates on majority of the retail loans have reduced sharply. This made it easier to cut down on the easy monthly installments that you’ve been paying for your past purchases. You could call on your bank and renegotiate the EMIs so that you could redirect more savings towards your retirement plan.
- Determine your investment portfolio, invest in equities
Such trying times give you the best opportunity to review your asset allocation and your investment portfolio. Make sure the investment portfolio is in perfect line with whatever you had planned for your personal finances. As long as equities are concerned, choose the fund after much consideration. While choosing, make sure it perfectly suits your risk tolerance profile. It is true that aggressive equity funds multiply really fast, but they even fall fast too. Check whatever suits you and ensure you are already investing in them.