• Home /
  • Blogs /
  • Retirement Planning at 35? See where you should invest

Retirement Planning at 35? See where you should invest

By Aspero

  • June 20, 2023
  • 4 min read


Retirement planning is a critical endeavor that demands strategic thinking and careful consideration of various investment options. Within investment portfolios, fixed income instruments can play a pivotal role in providing stability, consistent returns, and protection against market volatility. Allocating 30% to 40% of one’s portfolio to fixed income can help guard against inflation, preserve capital, and generate a regular stream of cash flows to cover essential expenses during planning for retirement.

However, the task of selecting the most suitable fixed income instruments requires a deep understanding of market dynamics, risk appetite, and the ability to adapt to changing economic conditions. Like the ebb and flow of the tides, fixed income portfolios require constant monitoring and rebalancing based on inflation expectations, interest rate scenarios, and credit profiles of underlying investments. Moreover, diversification across different products and sectors is essential to mitigate concentration-induced volatility risks and safeguard against unforeseen market downturns.

Direct Investment in Bonds

Direct investment in bonds offers the advantage of cherry-picking assets based on their risk appetite and investment goals. For instance, let’s consider a scenario for your retirement planning; you may want a stable income with minimal risk. By investing directly in bonds with credit ratings in the A category and above, the investor can secure a predictable stream of interest payments and principal repayment. This approach allows for customization and tailoring the portfolio to individual preferences.

  • Government Securities (RBI Retail Direct Scheme)
    • Investing directly through the RBI Retail Direct Scheme presents an opportunity to earn risk-free returns while enjoying enhanced liquidity. During periods of economic uncertainty, such as the recent global pandemic, government securities have proven to be a safe haven for investors, safeguarding your retirement plans. Their backing by the sovereign ensures a high level of creditworthiness and stability. This was exemplified when investors turned to government securities as a reliable investment during volatile market conditions.

  • Sovereign Gold Bonds (SGBs)
    • As the name suggests, SGBs are also government securities issued by RBI. They provide an effective hedge against downside risks during times of economic stress. Consider a scenario where investors seek to protect their portfolios from market volatility and diversify risk exposure. By investing in SGBs, the investor gets exposure to the price movement of gold while earning a fixed income. During periods of uncertainty or market downturns, the value of gold tends to rise, acting as a counterbalance to potential losses in other asset classes.

Debt Mutual Funds

Debt mutual funds provide a convenient avenue for diversification, even for small-ticket investors. Let’s consider a scenario where an investor has a modest investment amount but seeks exposure to a diversified debt portfolio. By investing in a debt mutual fund, the investor gains access to a professionally managed portfolio of various debt instruments. This allows for risk mitigation through diversification across different issuers, sectors, and maturities. Additionally, the option of systematic investment plans (SIP) and systematic transfer plans (STP) enables investors to manage market volatility and impose financial discipline on themselves.

Endowment and Money Back Insurance Policies

Endowment and money-back insurance policies combine insurance coverage with long-term savings, ensuring reasonable returns and financial security for retirement planning. Let’s consider a scenario where an investor seeks a combination of protection and savings for retirement planning. By investing in an endowment or money-back insurance policy, the investor can secure life coverage while accumulating savings over the policy term. At maturity, the policyholder receives a lump-sum payout, providing a financial cushion during retirement or for the beneficiaries in the event of the insured’s demise.


In conclusion, selecting the right fixed income instruments is vital for robust retirement planning. As investors, it is crucial to assess risk appetite, evaluate real-world scenarios, and align investments with long-term financial goals. From direct bond investments to government securities, debt mutual funds, InvITs, REITs, insurance policies, and sovereign gold bonds, a diversified portfolio can provide stability, consistent returns, and safeguard against market uncertainties.

To maximize your retirement planning, take action today. Begin by evaluating your risk profile and determining the appropriate allocation of fixed income instruments within your portfolio. Consider consulting with a financial advisor who can provide guidance tailored to your specific needs. Regularly review and rebalance your portfolio to ensure it aligns with your changing financial and market conditions. Stay informed about the latest market trends and economic developments that may impact your fixed income investments.