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How I Turned ā¹5,000/month into ā¹6 Lakhs ā My 3-Year SIP Journey
In 2020, I was saving ā¹5,000/month with no real strategy. I stumbled into SIPs by chance. Today, that same habit has grown into ā¹6,12,000 ā and taught me 3 major lessons about compounding, patience, and mistakes I wish I avoided earlier.
š What Went Wrong in Year 1
In my first year, I panicked during a market dip and pulled out my SIP investments. That single move cost me potential gains and broke the compounding chain. I learned the hard way that reacting emotionally to market swings is a recipe for regret.
š Lesson Learned: Consistency Beats Timing
- Missed rallies by being out of the market
- Lost out on rupee cost averaging
- Peace of mind improved with automation and discipline
š My Portfolio Before vs After
Before (2020)
- Random savings in bank account
- No real investment plan
- Low returns (2-3% p.a.)
After (2023)
- Disciplined SIPs in diverse mutual funds
- Portfolio value: ā¹6,12,000
- Average returns: 13-15% p.a.
š§ What Iād Do Differently If Starting Again
If I could start over, Iād set up my SIPs and forget about the daily market noise. Iād diversify a bit more, avoid panic-selling, and trust the process. Most importantly, Iād start even earlier ā because time is your biggest ally in compounding.
Life insurance is often viewed as a financial product meant to protect loved ones in the event of a policyholderās premature death. While this is certainly one of the key benefits of life insurance, it also plays a vital role in retirement planning. In fact, life insurance can be a crucial component of a comprehensive retirement strategy, providing financial security for both the policyholder and their family.
One of the main reasons why life insurance is important for retirement planning is its ability to replace lost income. Many people rely on their salary or pension to cover living expenses in retirement. However, if a primary breadwinner were to pass away unexpectedly, the loss of income could have a significant impact on the surviving spouseās financial stability. Life insurance can help bridge this gap by providing a death benefit that can be used to cover ongoing expenses, pay off debts, or fund retirement savings.
In addition to replacing lost income, life insurance can also be used to cover final expenses, such as funeral costs and medical bills. These expenses can add up quickly and can be a burden on loved ones during an already difficult time. By having a life insurance policy in place, the policyholder can ensure that their family is not left with these financial responsibilities.
Furthermore, life insurance can serve as a valuable estate planning tool. For individuals with significant assets, life insurance can help cover estate taxes and other expenses associated with passing on wealth to beneficiaries. This can help ensure that the policyholderās loved ones receive the full value of their inheritance without having to sell off assets or dip into retirement savings.
Another key benefit of life insurance in retirement planning is its ability to provide peace of mind. Knowing that loved ones will be taken care of financially in the event of an untimely death can provide a sense of security and comfort. This can help alleviate some of the stress and anxiety that often comes with planning for the future.
In conclusion, life insurance is a vital component of a comprehensive retirement plan. It can help replace lost income, cover final expenses, serve as an estate planning tool, and provide peace of mind for the policyholder and their family. By including life insurance in their retirement strategy, individuals can ensure that their loved ones are protected financially and that their legacy is preserved for future generations.
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Finance-in-business/”>The role of life insurance in retirement planning