Things to keep in mind when investing before and after retirement

If you have a detailed plan for each stage of your life, you can shorten your working time compared to the prescribed retirement age. Ms. Tran Thi Mai Han - personal financial planning expert at FIDT Investment Consulting and Asset Management JSC - said that before making a financial plan, you need to evaluate your current financial situation as well as your retirement goals.

The following factors need to be identified and evaluated for both pre- and post-retirement periods: sources of income, expected expenses, existing assets and liabilities, expected inheritance received and bequeathed to relatives, investment knowledge and experience, and personal risk appetite.

In addition, it is also necessary to pay attention to related factors such as the socio -economic situation, laws, and financial products on the market. This will help you have a basis for making a plan to apply appropriate financial products and investments to achieve short-term and long-term goals.

Ms. Tran Thi Mai Han shares about her retirement plan in the Smart Finance program. Photo: Duc Manh

Consider the specific example of Mr. An and Ms. Phuong, who are 45 years old. The couple plans to retire in 10 years with 5 billion VND in hand. Ms. Tran Thi Mai Han gives important notes on investing this money to aim for a comfortable retirement.

Investment Strategy for Retirement

According to the expert, investing for 10 years is a long period of time, allowing Mr. An's family to choose many financial products and diversified investments. At this stage, the expected profit performance for 10 years can be from 10 - 15%/year, in which the profit in the last years will gradually decrease when restructuring to low-risk, high-liquidity products, to prepare for retirement.

With 5 billion VND, after 10 years, the amount of money received at the time of retirement will be around 13 - 17 billion VND depending on investment efficiency.

Maintaining good profit performance and sustainable growth is not easy, requiring Mr. An's family to have investment knowledge and experience. Besides, investment efficiency also depends on the fluctuations of the socio-economic situation in the future.

Post-retirement investment strategy

After retirement, Mr. An's family needs to choose financial and investment products with average profit performance, corresponding to low risk to ensure the preservation of investment capital. They also need to pay attention to investing in products that can generate cash flow to compensate for decreased or no passive income.

Annually, Mr. An and Ms. Phuong need to evaluate and update the progress of the retirement plan. Thereby, they can determine the necessary adjustments to achieve the set goals.

The Smart Finance program is jointly produced by Lao Dong Newspaper and FIDT Joint Stock Company - Investment and Asset Management. The video series is broadcast at 7:00 p.m. every Thursday with the participation of leading prestigious financial experts sharing knowledge and skills in personal financial management and investment with readers/viewers!

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