My regular interactions with so many clients has convinced me that most of the people are not able to generate sufficient retirement corpus till their time of retirement is because of Mr. Newton.

Yes, because of Mr. Newton’s law of inertia. Most of the people know that continuing in Bank’s Fixed deposit is not a good form of investment any more but still continue to do so because it requires least effort.

In most of the cases, a certain part of the salary which goes to Bank automatically gets converted to MOD balance and starts attracting FD interest which is quite comfortable for the individual as he/she does not need to do anything. They idea never sinks in that the real rate of return (Inflation and Tax adjusted) could be zero or at times even negative.

Similarly, many of the bad investments in form of LIC policies, ULIP and Regular Mutual Fund plans are never reviewed and no action is taken to switch to options which give better returns simply because then one needs to come out of his comfort zone and take some actions. The 2-5 % higher returns earned over the years makes all the difference at the time of retirement.

The realisation that they should have taken such actions dawn at the time retirement when they have to take care of the next 20-25 years. However, by then the damage is already done.

It is important that all your savings gets invested in the right instrument that works best for you. If you don’t have time, inclination or expertise to manage your investments efficiently seek the help of a good Financial Advisor.