Retirement Planning“Goodbye Tension…

Happy Pension…”

Manish P.

Why we need to plan ?

Its risky to die early, but its more riskier to live long.

People change the basic principal

EARN – SAVE = SPEND

and now……

Life is not easy …

EARN – SPEND - EMI = ???

Life is not easy …

Don’t confuse with

“Spending for Life”

Or

“Life for Spending”

What Come First ? Plan for Child Education

Plan for Child Higher Education

Buying a new house property

Foreign Tour

Plan for Child Marriage

Retirement Planning

What comes First ?

Why we need to plan for Retirement ? Generation Gap

Changes in Life Style

Increasing Inflation – The new Demon

Increase of Medical Expenses

Absence Social Security System

Generation Gap

Absence of Joint Families and Business

Less Dependency

Parents support us and we support parents

Diminishing value of culture and respect

My dad had one pair of shoes and used it

for five years. I have five pair of shoes and

use it for one year.

In today’s wired world people connect less

emotionally more electronically.

High stress level.

Ever changing Lifestyle…

Inflation

If you have expenses TODAY

Rs. 1,00,000/-

Per month

The value after 35 years…..(with Inflation of 8%)

Inflation

Rs. 14. 78 Lacs

Per month

Rs. 1.77 Crore p.a.(Just to maintain the same Life Style)

Increase in Medical Expenses

Name of Treatment Cost TODAYCost after 15

yearsCost after 30

years

Dr. Fee for Check-up 1,000 3,172 10,063

Heart Surgery 3,00,000 9,51,651 30,18,797

Lever Transplant 33,00,000 104,68,158 332,06,768

Orthopedic Surgery 3,00,000 9,51,651 30,18,797

Catract Surgery 75,000 2,37,913 7,54,699

Open Heart Surgery 5,00,000 15,86,085 50,31,328

Spin Surgery 3,00,000 9,51,651 30,18,797 Inflation 8%

Retirement Corpus

A Corpus you need to build in

your accumulation phase (30

years to 65 years) so that you

enjoy your distribution phase

(After 65 years till you live).

How to create and how much is enough ? It’s a very difficult task to find out the magic number. We need to

consider the followings aspects to find out the same:

Expenses which will come after Retirement (Ex. Medical Expenses,

Gifts etc.)

Expenses which will not be there after Retirement (Ex. Loan EMI,

Child Education)

Provision for High Medical Emergiencies

Number of dependent and Inflation

Find the Magic Number…

Lets understand it with an

Example.

Meet Mr. Rajesh (Age 35).

He has a myth that “My PF

and all my pension plans are

enough to take care of my

retirement.”

Find the Magic Number…

Facts:

1. Monthly Expenses (Other then loan EMI) – Rs. 1 lac per month.

2. Food Inflation – 8%

3. Age of Retirement – 65 years

4. Savings till now for Retirement -

1. PF Account Balance – 5 Lacs ( Invest 2,50,000/- p.a.)

2. PPF Account – 3 Lacs (Invest 1,00,000/- p.a.)

Find the Magic Number…

Calculate:

1. Monthly Expenses at the age of 65 years – Rs. 10 Lacs per month

2. Annual Expenses (65 years) – Rs. 1.20 crore.

We need to create a corpus at the age of 65 which can give you monthly income

of Rs. 10 lacs per month (tax free).

If we assume 4% tax free rate of return, then we need a corpus……

Retirement Corpus to meet monthly expenses

30,00,00,000

30 CRORE

Retirement Corpus

Corpus we need for monthly expenses – Rs. 30 crores

Increase:

Provision for Medical Emergencies

Present – 10 lacs

A the age of 65 years – Rs. 1 Crore.

Retirement Corpus - Planning

IF YOU DIE EARLY

A good and decent Term Plan to

cater your needs.

IF YOU DON’T DIE EARLY

Discipline approach towards

investment.

Future is always unpredictable …We never know what come

next. So always be cautious

and updates about latest

happenings…

Final Note…

Plan Today for Better Tomorrow.

The best age to start for your

retirement is either 20 or NOW

Stick to basic, basic is always beautiful.

Always educate your kids about our

inheritance values, cultures and roots.

Don’t forget to prepare your WILL.

Donate and Educate..

Manish P.

manish@financialhospital.in

“it’s make you more beautiful…”