AssetBaazar

DID YOU KNOW?

Most Traditional retirement investments are debt oriented which may not have the power to beat inflation.

Moreover, inflation is a "silent killer". It reduces the buying power of money and the return on your investments. Traditional retirement investments may not beat the draining power of inflation. While they are certainly necessary, they may not be sufficient. Hence if you don't start preparing a relevant retirement plan you may land up in "old age poverty".

Is your retirement saving ready for the

30-30 CHALLENGE?

(30 productive years to fund 30 retirement years)

DID YOU KNOW?

By investing only in fixed return bearing instruments, you could be taking a bigger risk in life.

Fixed deposits and other debt oriented instruments are relatively safer than equities. However in India the rate of inflation is quite high. Therefore the fixed returns based debt instruments while preserving the current value of money could fall short of meeting one's retirement corpus. Hence by wanting to be sale today. perhaps one is taking a bigger risk in life.

Is your retirement saving ready for the

30-30 CHALLENGE?

(30 productive years to fund 30 retirement years)

DID YOU KNOW?

57% of the elderly are financially dependent on their son.

Source: Helpagelndia May 2010

Is your retirement saving ready for the

30-30 CHALLENGE?

(30 productive years to fund 30 retirement years)

DID YOU KNOW?

88°/o of India's workforce is not covered for post retirement benefits.

There is a near total absence of a formal social security system unlike advanced countries. Medical care facility is already prohibitively expensive and at old age the need to tail back on medical care is only likely to increase. Hence it you don't start preparing a relevant retirement plan you may land up in "old age poverty".
Source: m.pfrda.org

Is your retirement saving ready for the

30-30 CHALLENGE?

(30 productive years to fund 30 retirement years)

Here are reasons why retirement planning in India is pretty essential during the early years:

1. Pension: Retirement planning in India is essential as 80% Indian Workforce is not covered by formal pension system.

2. Nuclear setups: Today, more families are choosing the nuclear way of living and this also reflects in the post retirement living patterns of most individuals. To support an independent lifestyle post retirement, you must have your retirement financial planning in place.

3. Financial independence: Nowadays individuals after retirement, plan to be financially independent. While individuals may choose to contribute to their child's expenses or family contributions, they might also choose to start a new venture in this new phase of life.

4. Longer life expectancy: Better healthcare and medical help is a prime reason why our generation will live longer. But, with advanced medical facilities, one needs to chalk out a proper plan to sustain the health expenses in the long run

5. Retirement goals: Everyone dreams of amazing things to do after retirement! After working all your life, individuals have goals etched out to fulfil all their desires of pursuing hobbies, taking holidays, starting a business etc.

Mantra's for Successful Retirement Planning:

1. Start Early

The earlier you start the better it is. One mistake people make is to defer retirement planning till it's very late.
An early start means you will have to save a lot less to create the same corpus. An early start also gives you the freedom to take risks. For instance, equities, though risky, give higher returns than other assets-gold, debt and real estate-in the long run.

2. Invest for Long Term

In the last 37 years, equity markets (Sensex) provided a compounded annual growth rate (CAGR) return of 16.85%, which is higher than other asset classes. Which means If you have invested Rs 100/- in sensex your current valuation would be 34000/-, a whooping 340 times.

3. Invest in appropriate Asset Class

Investor in the age group of 25 to 35yrs should opt for higher Equity Exposure, Investors in the age group of 35-45 yrs should have moderate Equity Exposure & for the investors in the age group of 45+ should have higher Exposure in fixed return instruments. Asset Allocation should adapt to your life stage.

National Pension System (NPS), Public Provident Fund (PPF), Mutual Funds & ULIP are few instruments available in the financial market, which can help you create a substantial retirement corpus, Choose the right product & create wealth.