How to Start Investing for your Retirement in 3 Easy Steps!


Financial security, not having to worry about money in old age, stop working sooner... call it what you may, but (early) retirement is a financial goal all of us have.

Achieving peace of mind when it comes to securing your financial future scores high on your list of financial priorities. Here’s how easily you can start planning for it through your own Retirement Goal on Goalwise.

Step 1: Adding a new Goal from the Goalwise Dashboard

When you sign in to your Goalwise account, you will be taken straight to your Dashboard. Here, you will see the ‘Add a goal’ button near the top of the page, just below the menu bar (Not signed up yet? Take a minute to do it here).

Click on ‘Add a goal’.

Retirement is the second goal under the ‘Life goals’ category.

Click on the ‘Add Retirement goal’ option, and then click on ‘Start Investing’.

Step 2: Personalising your Goal Plan on the Goal Plan page

Click on Plan and Invest option to personalise your goal plan and check the projections before investing.

One of the main inputs here is the Risk Level. Your asset allocation and fund recommendation will depend on which option you select, Low, Moderate or High. Click on the Check Risk Profile button next to this setting in case you haven't done so already to find out your recommended risk level.

You can also change your desired Monthly Investment amount, and your Time Horizon (your time to retirement). Your projected amount will depend on these 3 inputs:

  1. Selected risk level
  2. Monthly investment
  3. Time horizon

Let’s assume that your current monthly expenses are Rs. 35,000, your life expectancy is 85 years (But we hope you live forever!), and you wish to maintain the same lifestyle after retirement. A rule of thumb is to save in your pre-retirement years the amount of money you will spend post-retirement, based on a conservative growth rate that matches inflation. The calculation is done as follows:

Monthly Investment Needed for Retirement = Current Monthly Expenses x (No. of Years to spend after Retirement) / (No. of Years left for Retirement)

So, in this case, with monthly expenses at Rs. 35,000, no. of years to spend for after retirement at 25, and no. of years left for retirement at 30, you should aim to save around Rs. 30,000 every month. (Rs 35,000 * 25/30 = Rs 29,166)

Once you plug-in these numbers i.e. monthly investment as 30,000 and time horizon as 30 years in the goal plan you can see that this will build a retirement corpus of Rs. 8 crores by the time you are 60 years old!

You can also use our Retirement Tool here to do a more thorough retirement planning.

Choose the SIP Date that is convenient for you. Every month, on the date you select, money will be transferred automatically from your account directly to the Mutual Funds. Once the Mutual Funds confirm the transactions, the investment will appear under your ‘Retirement Goal’ in your Goalwise account.

You can also see the current fund selection and allocation under the Recommended Funds table. You will also see here a projected Asset Allocation, which charts out your asset allocation for the complete duration of the goal. If you want to make any changes to your Goal Plan, you can do so by going to the Goal Plan. Since you just made your plan according to your requirements you are ready to go ahead and invest.

Once you are satisfied with the plan, click the blue ‘Save and Invest’ button at the bottom.

This creates a new goal ‘Retirement’ with the current plan and adds its Goal Card on your Dashboard.

You’re now just one step away from securing your financial future!

Step 3: Start investing through a monthly SIP

Click on the Continue option on the fund review page to proceed.

This is the 'Review' page for setting up your SIP under Retirement Goal. Here Total SIP Amount, SIP Start Date option and Duration (in years and months) are preset as per the Goal Plan that you decided on earlier.

Now, all you need to do is agree to the standard terms and conditions, and click 'Confirm SIP'! Goalwise provides bank-grade security to guarantee the safety of each transaction.

Congratulations! You’re now on your way to reaching your Retirement goal!

Now just sit back, relax and watch your savings grow. We designed Goalwise to be a ‘set and forget’ system for you. Once you have set-up a goal, Goalwise does all the hard work of managing it from start to finish. Goalwise will now:

  • Keep you invested in the best mutual funds throughout your goal, changing funds if required based on Goalwise’s rigorous research;
  • Review and rebalance your portfolio regularly to make sure your risk is always under control;
  • Notify you automatically of suggestions that can help you reach your goal faster

You have made the perfect goal plan for you, and we will work on it till you retire in style!