Retirement on r/IndiaInvestments Wiki

Primer on Retirement Planning

Mon, 01 Jan 0001 00:00:00 +0000

Primer on Retirement Planning

So, you probably groaned in your head when you read the title. Retirement planning is not something that you feel is something that deserves your attention because ‘Hey, my career started quite recently! I have a long way to go before I start worrying about things like retirement, right?’

Wrong! Now I am not asking you to worry about it. But through this post, I will hopefully be able to teach you why you should do it whilst explaining the different options that you have out there.

Why You should not Opt for a Readymade Pension Plan

Mon, 01 Jan 0001 00:00:00 +0000

Why You should not Opt for a Readymade Pension Plan

One of my friends recently met a smart young supposedly “IRDA approved financial consultant” who gave him an overview of investing into a retirement plan (and which was not a Ulip, in his words). I was merely an observer.

He gave him nice descriptions about the plan, and how that will be the best thing for his retirement and how he can then enjoy the best things in life automatically (only and only) if he invests in that plan. Awesome idea. Their fund management team had worked fabulously, and provided 15% returns on balanced funds (balanced funds = funds which can invest in both equities and debt). And implied in the response was that they will continue to do that for all the coming years. Great thing indeed again.

Studies of Long Term Portfolios and Retirement Withdrawal Rate Suggestions

Mon, 01 Jan 0001 00:00:00 +0000

Studies of Long Term Portfolios and Retirement Withdrawal Rate Suggestions

This analysis gives you a basic idea about the historical and current perspectives of institutions which manage money on a large scale. And because the world economy is increasingly getting unified (as compared to past), these ideas will be applicable on a principle basis. Hence, this idea is important as far as the basic strategy is concerned.

However, how it applies tactically in individual cases and in an Indian context will be different.

Do-It-Yourself Retirement Plan

Mon, 01 Jan 0001 00:00:00 +0000

Do-It-Yourself Retirement Plan

Using concepts outlined in following links

A simple Financial Planning Roadmap

Basics of Investment Strategy Plan

Basket 1. First ascertain, how much money you need in next 2 years (2 years expense including discretionary and non-discretionary). Put this amount partly in Bank account (obviously with an ATM/debit card), and rest in short-term / ultra-short term debt mutual funds.

Basket 2. Now ascertain an approximate amount of money needed in next 3-4 years (This is just an approximation again). Keep this amount into a dynamic bond or income fund.