Retirement Planning Service
Planning for retirement is not on most people’s mind. After all, it’s decades away. So why worry now?
And if you were to ask people whether they would have enough money to retire some day, they will generally tell that they don’t know exactly… but they hope that things will work out somehow.
But ‘hope’ and ‘somehow’ are not great strategies to have. And you would ideally not want to become dependent on your children after retirement.
Due to medical advancements, the retired life would be very long for most people. And most people have no idea whether what they are saving for such a long retirement is enough or not. Many believe that basic salary deductions (via EPF, NPS, etc.) made by their employers are enough. But sadly, that is not true.
In absence of a good retirement benefit system in India, it’s up to individuals to properly plan their retirement savings carefully, especially in the face of inflation and rising life expectancy.
If retirement is on someone’s mind, then they would have 3 basic concerns:
- How much money do I need to retire?
- Will that money be enough to for all expenses in retired life?
- Can I try to retire earlier than 60?
So to put it very simply, Retirement Planning means saving enough money to provide for a comfortable and chosen lifestyle after retirement. That’s what it really is.
Why Retirement Planning?
If you figure out money, life is incredibly easy. If you don’t, life is insanely hard. More so when you are retired.
Noble prize-winning economist William Sharpe has called retirement planning for people as “the nastiest and hardest problem in finance”.
Without a proper retirement plan in place, you run the risk of outliving your savings and not being able to maintain the desired lifestyle in your retirement years. So you would really not want to pass through the retirement door with less than adequate money. Isn’t it?
It might not seem like it at first but investing for retirement is a mathematical problem quite different from that of all other financial goals. There are a very high number of variables to take care off, like:
- How long will you live?
- How long will your spouse need support?
- What will be the inflation?
- What will be the returns from risk-free investments?
- What will be the returns from riskier high-growth investments?
- How much will your basic expenses be?
- How much will be your expenses towards wishes and desires?
- Will you need additional health care support?
- Do you want to leave some corpus as a parting gift for your children/grandchildren?
That’s not all. Below factors also play a big role:
- How much longer do you plan on working?
- Your current and future income levels?
- What are the expected investment returns until the time you retire?
- Your ability, willingness and need to take risks?
- How your perception of risk will change over time?
- Future tax rates?
- Your current and future savings rate?
I think that’s enough. I am not going to list down more factors as I don’t want to scare you.
I am just trying to highlight the variables that are at play when it comes to retirement planning.
So to get an answer to “how much money you would need to retire?”, you don’t want to just guess or go with random thumb rules that people discuss about.
Getting the right amount is essential and an important first step. Targeting too much would compromise your lifestyle today. And having too little is not something you would want to think about.
So how much is enough?
As a SEBI-registered Investment Advisor, I help people by creating their Retirement Plans based on a solid, systematic and well-researched methodology.
This helps you gain crystal clear understanding about what to do exactly to be 100% ready for your retirement.
What Exactly Do You Get When you Engage Me?
When you decide to engage me for Retirement Planning, I will be doing the following:
- Retirement Expense Projection and Needs Analysis to ensure accurate assessment of chosen lifestyle after retirement.
- Budgeting & Gap Analysis to identify the gap between required corpus and statutory benefits that you might be entitled to.
- Evaluation of your Risk Tolerance and Appetite and Requirement.
- Intelligent earmarking of Existing Investments for Retirement Goal
- Provide customized Asset Allocation & specific product-level advice (which includes clear directions about how much to invest, for how long to invest, where to invest, etc.)
- Cash flow Analysis starting from retirement age till the chosen life expectancy age.
- Assessment of need for creating a Medical Contingency Fund & Children/grandchildren Gift Corpus
- Stress-testing of the Retirement Plan for multiple scenarios (ex- what if you delay saving; what if you stop saving much before the goal day; etc.)
- One Half-Yearly Review – to ensure you and your investments are on track to achieve your desired goal.
You will receive a Super-specific and Totally Realistic Retirement Plan, with all above details + advice and with an actionable investment strategy that is unique to you.
No two individuals are alike and therefore, each retirement plan is created to offer advice that addresses the unique challenges and goals that come with every individual’s retirement planning.
The product recommendations are made after carefully assessing your goal need, risk profile, return and inflation expectations, etc.
On-going annual review will be a separate engagement. The review would be to ensure that portfolio is performing as expected and also to ensure that you are making progress on the right path towards achievement of your chosen goal. Unfortunately, if you are running behind schedule to reach the goal, then I will be making necessary adjustments to the plan to correct your course.
One time Retirement Planning fee is communicated after the discussion about your actual requirements. Don’t worry, the fee is reasonable and obviously less than full financial planning fee.
The process is as follows:
- Telephonic discussion to assess your requirement
- You sign the Letter of Engagement & make fee payment.
- You provide required information via the data collection sheets & risk profiler I send you over email.
- Once I have all the information, I will create your Retirement Plan (with recommendations, specific advice and scenario analysis).
- Telephonic discussion about the retirement plan.
- If need be, the plan will be revised post-discussion.
Mode of Delivery: E-mail
Estimated Delivery Time: 2-3 weeks
Interested in Working Together?
Retirement planning is necessary to maintain your desired lifestyle during your retirement years. And for that, you need to make investments today (during your working years) and allow them to work hard for you and create a large retirement corpus that you wish for.
So delaying your retirement planning is unwise. Remember, the earlier you start, the lesser you need to invest and still end up with a bigger corpus than those who start later.
If you need help with retirement planning, then I can be engaged for creation of the Retirement Plan.
Getting started is easy. Just fill up the form below to contact me: