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How to plan your savings the right way

Having a good balance between debt and equity must also be ensured.

If you are self-employed or in a profession that does not enable you to invest into an Employees' Provident Fund, then you must start and invest into Public Provident Funds. The benefits are many but tax benefits and guaranteed returns are at the top of the list. Not only will your retirement be in hassle-free incomes but also your chances of getting into any unnecessary debt like personal loan or home loan are cut down to nil.

If you have a working spouse, do persuade them to open a PPF account and exhaust the maximum limit. Together you can guarantee a regular income after retirement. Investing in SIPs is also advised since, for young couples, they have a much longer earning capacity, so generating income from that avenue is also sought after.

Diversification of fund investments is something that we come across every single day. Having a good balance between debt and equity must also be ensured. If you are a young working couple, it is best advised to start off by investing a considerable amount into equities and the rest in debt. Reverse the ratio once you are approaching retirement. With that you are opening another income avenue.

Try not to invest a lot in health covers. Be reasonable and invest a suitable amount into health insurance depending on your incomes, so as to not deviate from equities investments. The NPS (new pension fund) is another option that private employees like doctors can look into as it is long term and is best suited if you have an equity-linked retirement planning.

BankBazaar.com is an online loan marketplace.

Disclaimer: All information in this article has been provided by BankBazaar.com and NDTV Profit is not responsible for the accuracy and completeness of the same.

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