Sanjeev Rao, 27 Years, Freelance Graphic Designer, Bangalore: Hi, I am a freelance Graphic designer and want to start saving for my retirement, however, keeping in mind the nature of my work and the irregular income I receive, how do I proceed?

Being a freelancer, the approach to financial planning in your case will differ from that of salaried individuals who have a steady income at regular intervals. Not being a salaried employee means you are not eligible for PF/EPF contributions either, which would otherwise build your retirement kitty. This means you need to plan proactively for your retirement. Undoubtedly one of the best ways to do it is to invest in equity mutual funds owing to their high return potential. As a freelancer, you have the option of investing in equities via the lump sum mode due to the unavailability of regular funds. However, investing in equity via SIP mode is favoured since it offers greater capital protection as well as offers the advantage of rupee cost averaging. Alternatively, a better option would be to park your savings in a liquid fund rather than a savings account , and start a systematic transfer plan in a good performing equity mutual fund. This way the money you put in liquid funds appreciates at the interest rate that the liquid fund offers and the amount that gets transferred gradually in the equity funds appreciate at the rate of destination fund. This is a great way to spread out your risk as well as ensure your savings are better utilized.