For retirement planning what are the options available for investments? Is it worth to make investments through SIP, ULIP's, or direct investment in MF, directly in Stock markets and to some extent in debt market or in Pension Plans and ins poicies?l

Whenever the term retirement planning is used then it is seen that person near to retirement plan it, but in my opnion one shoul start as early as possible for his retirement because longer will be the tennure higher will be the return. There are some factors that are to be considered before retirement planning they are:

1. Current earnings and savings.

2. Time period before retirement.

3. Current and future standard of living.

4. Amount of money required every month after retirement.

5. Amount of money to be left for the children.

6. Always think that you will be living upto 80 years and plan accordingly.

7. Have a good financial consultant to make a good portfolio and a good financial health.

8. Always remember that after retirement the liquidity in hand is only support.

Based on these the plans like SIP, ULIP, MF, Equities, DEBT FUNDS, Pension plans, etc. are to choosen proportionately. Always remember "Donot to put all money in one fund."

When the term retirement planning is used, one has to assume that the planner has at least 15 years of service or earning time left with him.  The other assumption is that he is a fairly well educated person, capable of understanding money. 

The investment therefore, need not be dorment nor should it be wholly dependent on a third person, even if he is an investment consultant or the money is invested in a mutual fund.  He becomes necessary but one should know how to deal with him. 

For example, there is one ULIP product which reduces the risk factor automatically as a person's age increases.  The Company will probably sue me since they asked me to promote the product for them, branding it as one of their best products.  Everything looked fine, till I came to the clause of handling charges, which is 25%.  There is a similar product with the same company except the automatic reduction facility.  But the person can himself reduce his risk factor and all facilities are available with the product for this.

Handling charges for the other product is less than 12%.  I refused to promote the automatic reduction product and told the company that no one should charge such moneys as handling charges.

My suggestion therefore is to engage a proper and genuine investment consultant, who looks at safety of the investor's money.  Interact with him regularly.  Keep watching the investment.  Keep throwing some references periodically to the consultant to ensure that he does not drift from taking care of your money.  Draw up a healthy portfolio.  Plan your financial requirements, even if it is retirment period.  Different financial requirements can be met differently not necessarily out of personal cash all the time. After all, money is a resource and every resource should earn you some income.  For this you need to have freedom to select the best investment option even during retirement period. 

There could be a dozen more innovative products for retirement planning.  For this, the Government has to come up with legislation and ensure safeguards.  These will come but over a period of time.   Till then, knowledge is power.  Not the knowledge base of the mutual fund or the investment consultant, but knowledge of activities of the mutual fund or investment consultant is power!!