AN AMAZING GUIDE FOR PLANNING YOUR RETIREMENT

1. AN AMAZING GUIDE FOR PLANNING YOUR RETIREMENT A quick guide to give you head start in planning for your Retirement

2. Retirement Planning Guide Who doesn’t want to enjoy the golden years of life? After having worked all your life for others, RETIREMENT is the time for yourself. It is the most important phase in anybody’s life that is why the term ‘GOLDEN’. So it has to be planned the same way. Retirement is not just a goal but a stage of life that too, the most important. But before that look at the current state of Retirement Planning in India. Here are some other surveys as well:- Source: http://timesofindia.indiatimes.com/business/india-business/47-of-Indians-not-saving-for-retirement-Survey/articleshow/53250727.cms

3. Source :http://www.livemint.com/Money/TeJz11Yz3WeTHvl2pPIIoL/Indians-are-ready-for-retirement-but-havent-saved-enough.html Source: http://www.livemint.com/Politics/p6rgASSnT3aSv7raL81E1M/Only-21-feel-millennials-will-have-comfortable-retirement.html What is Retirement planning? Retirement planning is a process of planning for the golden years of yours & your spouse’s life i.e. Retirement. The planning for your Retirement allows you to make the most of the years you are earning income and the investments you make in those years. The whole process of Retirement planning enables you to manage your income and expenses in such a way that your Retirement corpus is big enough to last throughout your lifespan. Why the need for Retirement planning?

4. 1. Threat of early Retirement – The workforce of our country is increasing rapidly, 65% of our population is below 35 years of age and this figure is about to go up in coming years. This piece of article from Thomson Reuters - International Research Agency, justifies it.  Click here Check this Out: https://blogs.thomsonreuters.com/answerson/indias-demographic-dividend/ It is for everybody to understand that may be someone aged 30-40 years today may not be able to continue at high paying job after the age of 50 years until & unless that person is highly skilled & experienced and can compensate that high paying job with value addition by the work.

5. The work done by a 50+ can be done by one or two employees, may be even at half the pay. Yes, experience has been and will be highly valuable but don’t underestimate the increasing presence of technology and other aspects. Many people will surely survive on the basis of experience and carry on working for longer tenure but in this era of cut throat competition, you just cannot rely on experience alone. 2. Constant rise in living standard The expenses related to your household expenses will rise and if you are currently managing them you must be well aware of that. This is inflation, as your income increases the expenses also rise. Yes there will be a time when some expenses like the expenses related to your children, commuting etc. will go down but that will be at a very later stage and by then the constant increase in your lifestyle expenses will overtake any reduction in such expenses. So the need to efficiently manages your finances increases and Retirement Planning becomes crucial. 3. Life is not only for working hard All your life you have worked hard or you will work hard, from morning to evening or to even late nights. You give up your desires just to bring smile on the faces of your loved ones by fulfilling theirs. When people retire near 60 years of age, they may have the money to support them but do they have the energy?.

6. May be early Retirement will become a norm going ahead and it might prove to be good if planned early, properly and in an efficient manner. People might be able to use their hobbies to make some extra money but that should be well supported by the Retirement corpus built over the years. 4. You cannot just rely on your children You have made your best efforts or are currently making to raise your kids in the best way possible and providing them to the best of your abilities and sometimes even going beyond that. But before relying on them you should consider two things; a) Can you force them to take care of you? b) When they will be raising their own family, how convenient it will be for them to support you financially?

7. Accept the realities, you just can’t depend on the luck and your child(ren) to have a comfortable retired life. Your child may have issues with their own finances. But be assured, given the strong moral value system in our culture they will not leave a stone unturned to give you a comfortable retired life. 5. More than expected lifespan In our country, average life expectancy in the 1960s was 41 years, in 2000 it was 62 years and currently it is 69 years. The reasons for this increase are better medical facilities, good living conditions, reduction in infant mortality rates and many more. Going forward this is set to rise. So one aspect you need to take care is how much expected lifespan you will be having, accordingly you need to plan for your Retirement. If the planning is not as per the projections, you always have the threat of eating up your corpus too early or you will be in very difficult position if you exceed the life expectancy and funds are not adequate. But with some smart and early planning, you will be able to build a Retirement corpus big enough to always keep you in control. There will be much-needed attention to the health care as not having sufficient health insurance cover will eat up your retirement corpus in case of hospitalization.

8. Investing for Retirement Planning: Brief description of investment options chosen for Retirement:- PPF – A government backed fund that invests only in government backed bonds. Tax saving option. Equity Mutual Funds– Invests in the shares of various companies listed on stock exchanges, chosen by professional Fund Managers after careful and thorough research & analysis. Tax planning option. Debt Mutual Funds– Invests in a mix of Government bonds, RBI bonds, State bonds along with various bonds from deeply researched companies. No Tax saving but lower tax than FDs. NPS - Invest in a mix of Stocks, Government bonds and Corporate bonds. Tax saving over and above the other sections. Tax Planning option. Insurance policies– Not suitable at all, as the returns do not even match inflation and you don’t get the adequate life insurance. Only pure term plan should be chosen, which is cheap as well as provides proper insurance cover.

9. Returns from various investment options and allocation to your Retirement portfolio

10. Bottom-line : Although it is a very healthy sign that most of the people are concerned about retirement and really want to plan for it but lack of awareness, not enough guidance puts the plan in jeopardy. People often choose inadequate financial products for their retirement. With the assistance of experts & professional financial advisor, the journey of retirement planning will become real smooth How to plan -

11. Lets understand from the real case study of Mr. Atul that how you can plan for retirement. Below is the information we gathered from Mr. Atul Mr. Atul’s Retirement plan

12. Reality Check : As seen, the plan for Mr. Atul looks quite simple but Mr. Atul did not have everything sorted out. He could not invest Rs.15,000 as he had only Rs.6000 - Rs.7000 that he could invest, he doubted this whole process of Retirement Planning and deep inside he was worried. But when we suggested some ways he was quite happy and from that moment onwards he started planning & investing with us. Suggestions: He starts with Rs.6000 - Rs.7000 and increases his investment by Rs.1000 every year. So that he is very close to his retirement corpus. He can invest some amount whenever he could so as to bridge the gap between investment needed & investment made by using the bonuses or through smart saving in his monthly budget. If he is not able to achieve the retirement corpus by the age of 55 years he can postpone his retirement by few years. But this option will only be considered if no other scope is left. The prime focus will be to achieve the goal on target date or before that. We take pride that today Mr. Atul is our esteemed client and together in partnership we are working towards achieving such goals. Below is his actual statement.

13. Get your tailor made Retirement Plan Call us today: 09910416611 www.moneycanroll.com