Retirement Solution

Retirement Solution

“On the day of retirement, you should feel how great your future will be rather than how great your past was!”

Every one of us go through 3 phases in life. They are education, employment and retirement. In education phase, your parents take care of your expenses. In employment phase, your active income takes care of your family’s expenses. In retirement phase, as you will have no active income, only passive income known as pension should take care of your family’s expenses. To generate that pension during all the years in retired life, it is important to save and invest enough during employment phase so as to create required corpus by the day of retirement.

Generally, it is all too easy to become bogged down in the day-to-day grind of employment phase and lose sight of your retirement. But, if you are conscious of your eventual retirement, you can plan to retire early at an age of your choice and start your ‘second life’ to pursue your dreams and passions.

Our Retirement Solution spells out the amount of corpus required at the time of your retirement so as to maintain the same life-style from then on as is prior to retirement. If you already have some investments like Rental Property, Pension Policy, Provident Fund etc for retirement, these existing investments are considered in our planning and the gap is found. An appropriate mutual fund portfolio is recommended for additional investments to fill this gap and achieve the required corpus. Once retired, this corpus then is switched to another appropriate mutual fund portfolio and systematic withdrawal plan is used to generate monthly pension from it for the rest of your/spouse life.

Real-Life example of our Retirement Solution:

Our Client Mr. Suresh Rao is a self-employed professional and he is currently 45 years old. His wife Mrs. Manjula Rao is a housewife and she is 42 years old. Their current living expenses are about Rs 50,000 per month and Mr Suresh Rao would like to retire at his age 55. Towards this goal, they have already made investments in Rental Property, LIC Policy and PPF. In addition, they would like to start an additional investment of Rs 20,000 per month.

As per our solution designed for him, the existing investments and additional investment (referred as actual investment below) are found insufficient to create the required corpus and thus make them vulnerable to face old-age poverty. Instead, we recommend investing Rs 32,236 per month so as to create adequate corpus and have joyful retirement.

As Per Actual Investment Amount

As Per Recommended Investment Amount

If you are keen to know more on this, you may look into our detailed solution below designed for retirement of Mrs & Mr Suresh Rao. Treat it as our sample solution.

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