Key Retirement Planning, Steps to be Taken

By MFD Thiru / April 12, 2022

Key Retirement Planning – Steps To Be Taken Retirement Planning is the most important part of Financial Planning that everyone for sure should take care. Retirement means not stop working and start killing time and being a burden to others. Retirement is the third delightful stage in a human’s life where the first stage was your childhood where you were dependent on your parents and the second stage is where you started earning and building your professional carrier and family. There is a huge change in the financial behavior in all these 3 stages of your life. At Childhood you were dependent on your parents and when you move to the second stage you start earning and stop depending. You have to commit yourself to take the responsibility of your family’s requirement. This stage of your life is called as an accumulation stage – where you start creating assets and building wealth. Third stage (Retirement) of your life will be tricky and challenging, where you can’t depend on anyone for your requirements and also you’re earning potential will come down considerably and on the other hand your expense will ascend. Retirement is the most delightful part of your life, where you must have accomplished your responsibilities and start living for you and the society. This stage of life is also called as discharge stage where you start utilizing the assets and wealth created by you for the rest of your life. Now let’s consider the most important factors attributing your retirement planning. These are the most important aspects you have to be cautious before deciding on a retirement plan. You can use this as your control point to design your independent retirement plan. Present Lifestyle Cost: Amount of money spent on an average every month to maintain your Lifestyle Projected Inflation: Current inflation rate is 6.07%, this keeps varying with the market condition. On a brief the percentage in which the value of the money is lost by the end of the year. Retirement Age: This is your choice, if you choice to retire early you will have less no. of years to plan your retirement and hence the amount of investment will be more compared to if your choice is to delay your retirement age. Life Expectation: This again is your choice. Advised to plan for a longer life span as the average life span had increased with the advantage of the modern healthcare. ROI – Pre & Post Retirement: As a normal rule ROI pre-retirement can be more aggressive (12 – 15%) and post-retirement can be moderate (8 to10%). Corpus Amount: This is the amount of money you must accumulate at time of your retirement, such that this amount is invested in a conservative fund and a regular withdrawal can be planned. Legacy Amount: This is the amount of money you like to leave back to the next generation after your lifetime. Suggest a proper will needs to be created. The next most important point to be vigilant is Inflation Adjusted Retirement Cash Flow. Almost all your Retirement Plans that are available in the market may not support this. A constant amount is paid throughout your retirement lifetime, where you have to start compromising on your lifestyle starting from the first year due to the killer inflation. Kindly have a pleasant understanding on the below given working – wish our workings are self-explanatory, if required assistance we will be more happy to support you.

Things About Home Loan Vs Financial Goals

By MFD Thiru / March 21, 2022

It’s been generally considered that Wealth is created by purchasing a home at an early stage in life by taking an easy and quick home loan. It’s also made as the normal rule by the current generation that the eligibility for marriage is only by owning a house before marriage. I accept the intention but differ with the approach. My view as a financial advisor will have a different view. Let’s have a quick understanding. Let us again consider Mr.Ramu who is 25, wanted to take the most important decision in his life which is going to commit him for the next 35 years financially. As usual he is advised by his family and friends to buy a house so that he will be considered settled and be ready for his marriage. Let us now try to understand the true story of the Home Loan. Alternatively I suggest him to look at the other smart option where he can take care of all his future financial goal with the same EMI commitment. Rather achieving each of his financial goals he will be awarded with a gift – where his monthly commitment will come down, allowing him to consider any new financial goals. I sure this working must be of your interest and I will be more happy to help you in planning your personal Goal Based Financial Planning.

Magic of SIP – Systematic Investment Plan

By MFD Thiru / March 15, 2022

Magic Of SIP – Systematic Investment Plan The Smart Way To Grow Your Money And Reach Your Financial Goals The simplest way to understand investment is to – Start Early and continue your Investment with a Commitment. Life is Easy, Financial Goals for sure are going to hit your doors in the future. There is no way you can escape from it. A successful person is recognized in this society only if he is able to achieve his financial goals in time meeting his expectations. There might be many other problems to be encountered in your life, which is very difficult to predict or even be prepared to face. But for sure you can list down your financial goal and then qualify and quantify it much in advance. Will you accept with me that – if all your financial goals are taken care in time without any hassle, all other problems which arise in your lifetime be handled with peace of mind? Everything is possible in this world, humanoid has an answer for all its problem. An Early Planning and a Continued Commitment is the best answer to take care of your financial goals. SIP (Systematic Investment Plan) is a time tested and well demonstrated process for all types of investors to achieve his financial goals. Let’s consider the family of Mr.Ramu (Age 35) & Rani – they have two kids, Kid 1(Age 5) & Kid 2(Age 2). Ramu’s main objective in his life is to make sure that, both his kids are provided with good education. He wanted to plan his finance for his kid’s higher education. Let’s see how a SIP can help him and what is the SIP investment required from Ramu. Plan your Financial Goal, Start Early, Continue your investment with a commitment – Life for sure is made EASY.