When investing for your retirement, you get many choices in terms of investment instruments as you have a high-risk appetite and know clearly about your financial needs for your retirement, so you have a goal in mind. However, after retirement, you must make your investment strategy again. How can you ensure you become a successful investor when investing money after your retirement? Here are 3 things you can do to become a successful retiree investor.

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Don’t Let The Inflation Rate Beat Your Portfolio Return

After several years of hard work and planning you may have built a retirement corpus with the expectation that it will be sufficient for your remaining lifetime. Despite all efforts your corpus may still not be sufficient, especially when the inflation rate is higher than you would have expected. So, how to avoid such a situation?

It would be best if you focused on getting a higher positive real rate of return on your investment to beat inflation and meet your expenses without falling short. The real rate of return is the return on investment you earn over and above the inflation rate. You can choose the appropriate investment instruments in sync with your risk appetite to earn a higher return.

You Must Diversify Your Investment

When you plan to beat inflation, sometimes you may need to take a little higher risk but you can’t afford a risk during your retirement, so what to do in such a situation?

You should diversify your investment into different asset classes to diversify your investment. Investment diversification reduces the risk and allows you more flexibility when choosing the appropriate investment instruments. You may choose to invest in a mix of asset classes such as equities, debts, gold, etc.

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Choose Investment Instruments In Sync With Your Post-Retirement Goals

You must choose investment instruments in sync with your post-retirement goals. While doing the investment diversification, you should consider factors such as liquidity needs, your short- and medium-term financial goals and your long-term financial goals. To meet liquidity needs, you may invest in instruments like bank fixed deposits (FDs), liquid mutual fund schemes, arbitrage funds, etc. For short and medium-term financial goals, you can choose instruments like Senior Citizen Savings Scheme (SCSS), debt funds, etc. When investing for the long term, you may choose instruments like hybrid funds, Public Provident Fund (PPF), large-cap funds, index funds, etc.

When investing after your retirement, you must not get impulsive at any point of time. Also, when considering return on investment, always check the tax applicable on it. Review your investment portfolio from time to time and do the portfolio rebalancing as and when required.

The author is an independent financial journalist.