Retirement planning? Ohh!! Are you kidding?

Retirement planning? ohh!! Are you kidding? i am just 32 Years old.

I was asking my one of the prospect. Sir, what are your plans when you retire? What kind of amount you would like to have?

some question - answers :-

Q - I am just 32 Years of age.....still lot of time in retirement. Why should I do it now?

My Reply  :- Sir, when you have time on your side, you earn more on the money you invest, like Capital + Interest + Interest of Interest :)  its call as power of compounding.


Q - I have enough contribution to my EPF & PPF account, it will be enough for retirement-
My Reply  :- Sir, Look at inflation, inflation is almost as high or same as you earn on PPF or EPF, the thing you want to buy cost 100 today & the same will cost you 108 after a year. so in real terms, you have not made any money on your capital.


Q - Do you think i will require lots of money? When i will retire? As my expenses will be lower at that time...also i will be debt free by the time i retire.
My Reply   - Sir, the only answer is :- anyone who is on holiday for a day, spends more money than the man going office on the same day. So your working life is 30 years and life after retirement is approx 25 years....that too all that 25 years no earnings at all?


In India, almost 70% plus people do not have social security / pension provision or retirement planning........

I think one should start planning for retirement from the 1st day of you join the job.

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Why One Should Invest In Mutual Funds ?

Why One Should Invest In Mutual Funds ?

An Initiative by IDFC Mutual Fund

HDFC Limited :- Case Study - Equity Makes You Money :)

HDFC Ltd 

Initial Investment Rs. 5,00,000 

(Rs.5,00,000 / Share Price of Rs. 65  = 7,693 Shares)

Share Price as on 1st October, 2002  Rs. 65

12th December, 2002 Bonus 1:1 = Shares 15385

18th August, 2010 Split 10rs to 2 rs. = 76925

April 4th 2013, Rs. 800

Share Price as on 4th April,2013 = Rs. 800

Shares x Price (76925 x 800) = Rs.61540000

5Lac invested for 10 Years is worth = 6.15 Cr

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Savings Vs Goal Mismatch

Savings Vs Goal Mismatch

Here we will converse about Your Financial Goals Vs Kind of Saving Required,

Goals can be classified as :- 

• Emergency money planning 

• Buying a house

• Buying a car

• A holiday abroad

• Retirement Planning

• Education & Marriage Planning for Kids

• Any other Financial Goal (owning / starting your own business) etc.,

One needs to match his/her financial objective to the correct class of investments they do. 

Isn’t that you think about all the time?

If yes, you start figuring out how to assign the funds you are earning to the right kind of investments for your current & future financial goal wishes.

Now let’s talk about your goals!

To decide where to allocate your money or how you can invest the money, one should consider short term / medium term & long term goals for self & family.

• Thinking of stop renting or buying a house in long run?

• May be you need to buy a car now? 

• Creating Contingency fund / Emergency Fund for any unexpected situations it may arise in future? 

And please, do not forget to invest for your retirement.

make a note of all your goals....write it down & make a list and prioritize the same. 

After you finish the list and the priority on the same...next step is to put an estimated value on the same, the estimated value does not need to be the precise amount, but you should have an idea about the estimated value at least, like your requirement of estimated money you will require when your kids will go to school / college. Right? How much you will require when you will retire? What will be the inflation rate when you aim to retire? Once you will have this list ready on paper with all the details, set a timeline for each event. May be your retirement is several years from now and you want a car in next 1-2 years right?

Match your assets with your goals

Short term goals-allocate your money in short term funds / liquid funds for a period of days and months.

Medium term goals – allocate your money in medium term debt funds (maturity of 1-3yrs or in a Bank FD.

Long term goals – like the name suggest, its long term...generally 5 year plus money, you can assign the funds to Equity & Balance Funds, so you can take an advantage of Equity returns + dividend Income & off course, this will beat the price increases (inflation) in long run.

This all is not a onetime process, this needs to be look / re-look at time to time, the reason is...when you are in your 20’s & 30’s you take more risk in equity to earn and extra returns, and less of equity allocation in your 50’s and 60’s.

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this above article is published in Proteus Magazine September 2013 issue,
you can download the entire Magazine. click to download the magazine :- http://www.scribd.com/doc/164490944/Proteus-Magazine-September-13-issue

Middle class Indian’s are struggling for right kind of financial advice

Middle-class Indian family needs advise,which is completely different than the affluent Investors.

Middle-class families has been hit sometimes by job cuts, too much on inflation side, as the housing prices are too high in India, Rent is getting more costlier, basic lifestyle is even getting costlier as inflation is over 9%, day to day things are getting costlier which are need based. High food inflation, Electricity Prices getting high day by day, Petrol prices are higher, auto rickshaw fare, vegetables and so on.....for them......list never ends...

Middle class families hardly have Pension Plans; they have to figure out the saving for retirement, they hardly gets money for his requirement of leisure.

Middle-class income families can’t afford to do mistakes at all, as very little money they have at the end of the month/year for savings for their financial goal, almost two-third of middle class suffer for retirement planning. lots of excel sheets / planning material / books / audio / everything is available online now a days (thanks to technology) but...,

“Technology cannot replace Financial Advisor”

5 Steps for Financial Freedom for Middle-class Family.

1. Insure Yourself & Family

2. Get out of Debt / Eliminate your bad debt

3. Start saving – sometime little savings is enough to start

4. Invest in what you understand

5. Diversify your investment across Gold, Equity, Debt, Real Estate, and Country specific.

- Manan Mankad

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