Financial experts have suggested that one must thoroughly review the retirement plan provided by their employer at least once in a year, or even when major life changes occur. If you have lost track of when you did that last, then here’s a guide to help you with the same.
The year 2015 has been an unpredictable one and tested the nerves of the most resilient of investors. You can take it as a good way to measure your investing habits and assess your nature based on the decisions you made. If you found yourself selling some of the stock investment plans based on reports of volatility in the stock market in the media, then you might start off your annual review by reassessing your risk tolerance.
When we say risk tolerance, we are talking about your ability to remain undeterred despite of all the fluctuations going on in the market, while keeping your long term goals in focus. An assessment of your risk tolerance considers, among other factors, your investment time horizon, your accumulation goal, and the assets you may have outside of your plan account.
Also, if there are any major life changes you have come across recently, then even now is a good time to review your retirement plan. Major life changes may include you getting married, or getting a divorce, buying or selling a house, having a baby, sending your child to college, you or your spouse changing your job, receiving a promotion, or leaving the workforce altogether, somebody in the family experiencing a change in their health, or maybe you inheriting a sum of money that has had a material impact on your net worth, etc. Any of these cases can affect your current and future financial situation.
After you have assessed your risk tolerance and made a note of any major life changes, you may want to take a look into the future from a fresh perspective. If your dreams about the life after retirement have changed, and if those changes will affect the amount of money you will need, then you may have to change your retirement plans accordingly.
Unit Linked Insurance Products (ULIPs) are different from the traditional insurance products and are subject to the risk factors. The premium paid in the Unit Linked Life Insurance Policies is subject to investment risks associated with capital markets and the NAVs of the units may go up or down based on the performance of fund and factors influencing the capital market and the insured is responsible for his/her decisions. Max Life Insurance is only the name of the insurance company and Forever Young Pension Plan(UIN: 104L075V01)is only the name of the unit linked life insurance contract and does not in any way indicate the quality of the contract, its future prospects or returns. Please know the associated risks and the applicable charges from your Insurance agent or the Intermediary or policy document of the insurer. The various funds offered under this contract are the names of the funds and do not in any way indicate the quality of these funds, their future prospects or returns.For more details on risk factors, terms and conditions please read sales brochure carefully before concluding a sale. Past performance of the funds does not indicate the future performance of the funds. You may be entitled to certain applicable tax benefits on your premiums and policy benefits. Please note all the tax benefits are subject to tax laws prevailing at the time of payment of premium or receipt of benefits by you. Tax benefits are subject to changes in tax laws.