EFFECTIVE FINANCIAL PLANNING FOR A HAPPY RETIREMENT

Hello everyone..

I hope you are doing great in your career and life.

I had been dealing with many IT professionals, doctors' businessman income tax returns and managing their finances since more than 6 years now and what I found was, that despite of earning handsome salaries or business income they lack long term wealth creation attitude or don't have any effective  retirement plan.

Most of them have parked their money either in Savings Account, Fixed Deposits, PPF, equity shares(bleeding portfolio holding stocks with emotion, no stop loss!) or Mutual funds but alignment with future goals is majorly missing.

They are excellent in their area of work, but lack the skills needed to manage their finances or making their money work for themselves effectively.

So Akshat, what exactly is effective retirement planning?

In order to  understand what retirement planning looks like, sharing the snippets of the successful financial planning call suggested and closed last week by our team.

1. This Couple is  working in Noida in IT and sales field respectively.

Income of husband is 32 lacs and age is 32 years.

Income of wife is 18 lacs age is  31 years.

Annual family income.   50 lacs

Income taxes paid.         10 lacs

Net in hand income.       40 lacs

Expenses.                        30 lacs

Annual savings               10 lacs 

(Details of expenses :- Car loan emi 25k, housing loan emi 60k, mutual funds and other investments 25k, house hold expenses  1.4 lac all per month)

Total 2.5 lac per month, annually 30 lacs.

2. What we suggested?

     A) Invest Rs 8 lacs per anum in a pension plan for 12 years, wait for 2 years and from 15th year receive 13 lacs per anum for next 25 years as pension.

                                                            and 

on 39th year receive back 98 lacs initial investment (Rs 8 lacs paid  for 12 years) guaranteed money back.

If we sum up the benefits of this investment,

IRR is 7% p.a. tax free.(outflow-inflow)

Insurance cover from day 1 of Rs 1 crore.

These are guaranteed returns with no alterations whatsoever.

Total outflow of funds is Rs 98 lacs and Total inflow is Rs  4.19 crore.

Net gain over the year is 3.2 crores.

   B) Invest Rs 2.4 lacs per anum in equity market linked product for 15 years.

IRR is 13 % p.a. tax free 

Insurance cover of Rs 24 lacs from day 1.

out flow in 15 years is Rs 36 lacs and expected inflow after 15 years is Rs 1.2  crore.

Note:- In Equity Market based product, returns are linked to performance of Indian stock Market.

   C) Apart from these investments we advised  some income tax saving instruments which was the cherry on the cake.(annual tax saving of Rs 25,000 on interest income from Fixed Deposits)

By mixing the guaranteed return product and market based product we have mitigated risk  and returns and this is commonly known as portfolio balancing.

Initially the client was hesitating to commit such amount of Rs 8 lacs p.a. for 12 years. But eventually he understood the importance of goal based investing and made a good financial decision.

At present also he had a corpus in FDs mutual funds etc (approx 20 lacs) but the alignment with future requirements was missing which is the crux for any sensible investing.

We are currently working on a retirement plan for a IT couple having annual income of 60 lacs and suggesting for investment of Rs 10 lacs p.a. in pension plan for retirement and 5 lacs p.a. in equity market linked product.

I hope you understand the basics..

So here I wish to present myself as a financial doctor to better your finances and help you to create long term wealth and a effective retirement plan.

If you  want to effectively plan your retirement I can surely demonstrate a presentation on google meet that will definitely change your horizon on how you look at investment, insurance and money.

Contact at 9028912025 for more details.

Happy reading!

#investment#financial freedom#early retirement#retirement plan.

#think twice#act wise.