Do you want to spend all the money that you have earned now and enjoy life to the full? Surely, that is what everyone wants to do. However, this kind of flashy lifestyle also means that you are likely not saving any money at all. So, know that you are probably creating a big problem for yourself in the future - When you retire or become old, you will not have enough money for medicines or maintaining a decent lifestyle. You will also have very little in your bank account when emergencies like coronavirus pandemics strike and you are left jobless or your pay is cut by your company. So, pay attention, here is what you should do to ensure you retire rich!

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Retirement Planning is one of the most important aspects of an investor's portfolio. As per the tax and investment experts, retirement planning has three stages — the nascent phase of the career, mid-career and post-retirement phase. However, one should start focusing on the financial planning tools in the nascent phase of career. If an investor starts to plan in the early phase of career, then the pressure to save for the post-retirement phase goes down and probability of achieving long-term investment goals is higher.

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Highlighting the importance of financial planning in the early phase of career, Balwant Jain, a Mumbai-based tax and investment expert said, "Nascent phase of the career is the phase when an individual lays the foundation of a financial edifice and thus needs more planning and attention. If anyone is financially dependent on you, then you should first buy a personal accident policy. Personal accident policies come very cheaply and the average cost per lakh is between Rs 125 and Rs 200 rupees."

Secondly, you should buy a health insurance policy for yourself and for your financially dependent parents. The amount of health insurance would depend on the place where you are residing and your lifestyle. "In my opinion, one should have a minimum of five lakhs of health insurance. One should buy a health insurance cover even if employer provides it because it may happen that your new employer may not provide it in case you have to leave the present job. In such a situation, your pre-existing disease will not be covered immediately and will have a waiting period of three to four years. In case you have any person financially dependent on you, you need to buy term insurance equal to minimum 12 times of your annual income to safeguard the interest of your dependents. Buy online term plan if possible as it comes cheaper with the same benefits," said Jain.

Suggesting investment for an emergency fund which people are facing these days during Coronavirus lockdown, SEBI registered tax and investment expert, Jitendra Solanki said, "One should have an emergency fund if he or she is in the nascent phase of career. Such funds become handy in the case of job switch or in the worst scenario of job loss, etc." 

After emergency fun, go for investments that will grow your money. Solanki said that you should chalk out financial goals so that suitable products for investments can be mapped with the goals.

"Since you have almost 35 years to your retirement age, your ability and aptitude to take risk is higher and thus you can invest in risky products. Moreover, since you are not married, buying a house and saving for your retirement should be your clear goals. For the goal of buying your house, you need to save for margin money and depending on the time frame available, you can save in debt funds or aggressive hybrid funds. For your retirement goal, you can take higher risks and invest in good performing small-cap funds as these funds generate better returns in the long run. You need to review your goals and investments every year as well as with life changes like marriage and birth of a child in the family," concluded Balwant Jain.