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Retirement Planning

A simple way to invest in equity and create wealth

"“IF I'D KNOWN THAT RETIREMENT WAS

GOING TO BE THIS GOOD I'D HAVE DONE

IT THE DAY AFTER I LEFT SCHOOL !!!”

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WHAT IS RETIREMENT PLANNING

�Retirement Planning is an attempt to find out how much money you will need if you retire today

�The objective is to have enough savings & investment so that one does not have to compromise one’s life style post retirement and one never runs out of money.

�Retirement planning, in a financial context, refers to the allocation of finances for retirement. This normally means the setting aside of money or other assets to obtain a steady income at retirement.

SAVE FOR YOUR OWN RETIREMENT

BEFORE SAVING FOR YOUR CHILDREN’S

COLLEGE EDUCATION.

THEY CAN GET LOANS FOR COLLEGE

YOU CAN’T GET LOANS FOR RETIREMENT

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WHY RETIREMENT PLANNING?

� No social security system

� No salary, no increments, no medical reimbursements, no bonus!

� Increased health care costs

� Increased standard of living

� Inflation hurts more than ever

� Early retirement

� Living long is a risk

� Abolition of Joint family system

Not everything needs to be gloomy IF retirement is planned properly; then there are many positives

� No more 9AM to 6PM!!

� No milestones, targets, performance appraisals

� NO BOSS (except the spouse though!)

WEALTH ACCUMULATION AND EROSION MODEL

Working Life

Life Expectancy

A C D

B

Rs. needed to Fund Retirement

Retirement Life

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� Getting ready to retire is a process that ideally starts as early as possible in

one's working career. Allowing our investments more time to earn for us is

the best way to build our portfolios.

� The first part is assessing your readiness to retire given the lifestyle goals

you have and the age at which you hope to retire.

� The second is to come up with possible actions and decisions to improve

your readiness and to get closer to your goals.

DETERMINE YOUR RETIREMENT CORPUS

�Be honest about the way you hope to live and determine howmuch the lifestyle you want will cost you. Work backwards fromthere to calculate how much you'll need to save in orderachieve the required corpus.

�One key aspect of retirement planning is choosing theinvestment vehicles you will use to help you reach yourfinancial goals.

�Healthy retirement planning depends on asset allocation ratherthan on the performance of one single investment.

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NEVER TOUCH YOUR RETIREMENT

SAVINGS EXCEPT FOR YOUR

RETIREMENT !!!

Estate Planning

A simple way to invest in equity and create wealth

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WHAT IS ESTATE PLANNING?

� EstateEstateEstateEstate planningplanningplanningplanning deals with leaving your wealth back to your heirs.

� Tools for Estate Planning – Nominations, Will, Trust, Power of Attorneys

� Estate Planning minimizes confusin and emotional strain on beneficiaries of

the estate

� It ensures your assets are distributed in the manner you want to distribute

� It helps to preserve your assets

� It ensures minimum or no court involvement

� It helps to protect your dependents

WHAT IS ESTATE

Your "estate" consists of all property owned by you at the time

of your death, including:

�Real estate

�Bank accounts

�Stocks and other securities,

�Life insurance policies,

�Personal property such as automobiles, jewelry, and artwork

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WHO NEEDS ESTATE PLANNING?

If you own anything or have people who rely on you it is a good idea to have

a plan. The more complicated your personal and financial affairs, the more

important it is. You should also review your estate plan at least once every

three years and whenever your circumstances change, such as:

�getting married, living with a partner, separating or getting divorced

�as soon as you have children or step-children

�buying real estate or other valuable assets

�buying, selling or operating a business

� if you have family members with special needs or children who are

vulnerable

� if you set up a family trust or company

WHY SHOULD ONE CREATE A PVT. TRUST

Managing Property

At Present

In Future after my Demise

When I am old and children are

away

For minor children

For Parent when I am away

To distribute among

successors

To hold for spouse and

children

Charity

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“6 REASONS YOU NEED

A FINANCIAL PLAN”

& WHY NOW

REASON 1: IF YOU DON’T KNOW THE DESTINATION,

HOW WILL YOU KNOW YOU’VE ARRIVED?

1. A financial goal is something that has a time frame and that can be quantified

2. Remember – Vague goals like “ a comfortable retirement” is hard to plan.

3. Understand the key reason and set your mind to achieve it.

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REASON 2: DETERMINING A PROPER INVESTMENT

ALLOCATION IS CRITICAL

1. You must understand how your investment are allocated to the different asset classes?

2. Know how your investment are spread in terms of risk level.

3. Know your risk tolerance level.

4. Your investment allocation should reflect on the goals you are trying to achieve.

REASON 3: ARE YOU SAVING ENOUGH FOR YOUR

RETIREMENT AND CHILD EDUCATION

1. Whether you want to fund your children’s college education, save for retirement, or buy a new house, most financial goals mean periodic savings.

2. The financial planning process will help you identify how much you will

need to save periodically and in total for each of your goals.3. Have you set an emergency fund that you regularly invest in?

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REASON 4: ARE YOU PROPERLY INSURED

1. Do you have enough life insurance, and do you have the right kind of policy for your situation.

2. Do you have disability and long –term care insurance? Do you need this coverage?

3. A financial plan addresses how much of coverage you will required and all of the above issues.

REASON 5: KNOW WHICH ASSETS IS PERFORMING

FOR WHICH GOAL

1. With a comprehensive financial plan, you can instantly determine which assets is performing to your set goals. This will be critical as it will assist you to make the decision to hold, sell or even to buy more of the targeted investment.

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REASON 6: WHAT WILL HAPPEN TO YOUR ASSETS

UPON YOUR DEATH

1. Most of us have someone to whom we would like to pass on whatever wealth we have accumulated during our lifetime.

2. Do you have a will? Are you beneficiary designation on retirement accounts and insurance policies up to date? What would happen to your assets if you dies today? Is this what you intended.

3. Estate planning is a central part of the financial planning process.

NOTE TO REMEMBER

Remember: Financial Planning is not a one time event, but ratheran on-going process. The plan is base from which to makefinancial decision, but the plan can change over time based uponchange in your personal circumstances.

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QUESTIONS TO ASK A FINANCIAL PLANNER OR ADVISOR

� What experience do you have?What experience do you have?What experience do you have?What experience do you have?

� What are your qualifications?What are your qualifications?What are your qualifications?What are your qualifications?

� What services do you offer?What services do you offer?What services do you offer?What services do you offer?

� Are you independent of financial product sponsors?Are you independent of financial product sponsors?Are you independent of financial product sponsors?Are you independent of financial product sponsors?

� How much do you typically charge?How much do you typically charge?How much do you typically charge?How much do you typically charge?

� How will I pay for your services?How will I pay for your services?How will I pay for your services?How will I pay for your services?

� Are you licensed by SEBI / IRDA / FPSB ?Are you licensed by SEBI / IRDA / FPSB ?Are you licensed by SEBI / IRDA / FPSB ?Are you licensed by SEBI / IRDA / FPSB ?

� Have you ever been publicly disciplined for any unlawful or Have you ever been publicly disciplined for any unlawful or Have you ever been publicly disciplined for any unlawful or Have you ever been publicly disciplined for any unlawful or unethical actions in your professional career?unethical actions in your professional career?unethical actions in your professional career?unethical actions in your professional career?

WHAT A CLIENT WANTS ?

� Understand my situation

� Educate me

� Respect my assets (no matter how small)

� Solve my problem – don’t sell me product

� Monitor my progress

� Keep in touch

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FOCUS ON FIDUCIARY

FOCUS ON FIDUCIARY

Meaning of Fiduciary:Meaning of Fiduciary:Meaning of Fiduciary:Meaning of Fiduciary:

A person who holds assets

in trust for a beneficiary

A fiduciary duty is a legal or ethical relationship

of confidence & trust

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FOCUS ON FIDUCIARY

“The agent is not your friend. He’s more like “The agent is not your friend. He’s more like “The agent is not your friend. He’s more like “The agent is not your friend. He’s more like a Doctor who charges patients on how a Doctor who charges patients on how a Doctor who charges patients on how a Doctor who charges patients on how

often they change medicines.often they change medicines.often they change medicines.often they change medicines.

And he gets paid far more for the stuff the And he gets paid far more for the stuff the And he gets paid far more for the stuff the And he gets paid far more for the stuff the (drug companies) are selling, than the (drug companies) are selling, than the (drug companies) are selling, than the (drug companies) are selling, than the

stuff that will make you better”stuff that will make you better”stuff that will make you better”stuff that will make you better”

---- Warren BuffetWarren BuffetWarren BuffetWarren Buffet

If you have both knowledge & time, then you do notrequire a financial advisor. However, if you donot haveany one of these, then hire someone to do it for you -and be willing to pay for the service. Most of us atsome point have something in our body that needsfixing and we happily pay a doctor to do so, but wehesitate to pay someone to help fix the financialmismatch most of us are born with.

Last but not the least……..

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SOURCE

� Life Insurance Council, India

� IRDA Annual Report

� Valueresearchonline.com

� Rediff.com

� Outlook Money

� Respective company websites

OUR INVESTOR AWARENESS INITIATIVES

� Business schools

� Colleges

� Companies / BPOs / Small & Medium Enterprises

� Senior executives

� Rotary Clubs

� Media Journalists

� Housing Societies

� Clubs

� Charitable Trusts & Institutions

� Indian Naval base

� Various Social organizations

Conducted more than 100 free workshops in FY 2011-12 across India

catering to approximately 6,000 individuals

“When you are successful you must give back to society. Society gives us so much; we must reciprocate” – J R D Tata

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MAHESHWARI YUVA SANGATHAN

CHIEF GUEST - SHRI ANURAG TANKHA, IPS OFFICER, DIG, EASTERN RANGE, ASSAM

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500+ PARTICIPANTS

THANK YOU

For any further information, please contact:For any further information, please contact:For any further information, please contact:For any further information, please contact:

Mr. Gajendra Kothari, CFA, CAIA, ICFAMr. Gajendra Kothari, CFA, CAIA, ICFAMr. Gajendra Kothari, CFA, CAIA, ICFAMr. Gajendra Kothari, CFA, CAIA, ICFAM:+91 98678 24321E: gajendra.kothari @eticawealth.com

ÉticaÉticaÉticaÉtica Wealth Management Private LimitedWealth Management Private LimitedWealth Management Private LimitedWealth Management Private Limited501, T-39 Sunshine Building,Shastri Nagar, Lokhandwala Complex Road,Andheri West, Mumbai - 400 053Landmark: Suburban Diagnostics, Near Lokhandwala Circle

T: +91 22 2632 9644+91 22 4264 8740

E: info@eticawealth.com

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THANK YOU

For any further information, please contact:For any further information, please contact:For any further information, please contact:For any further information, please contact:

Mr. Gajendra Kothari, CFA, CAIA, ICFAMr. Gajendra Kothari, CFA, CAIA, ICFAMr. Gajendra Kothari, CFA, CAIA, ICFAMr. Gajendra Kothari, CFA, CAIA, ICFAM:+91 98678 24321E: gajendra.kothari @eticawealth.com

ÉticaÉticaÉticaÉtica Wealth Management Private LimitedWealth Management Private LimitedWealth Management Private LimitedWealth Management Private Limited501, T-39 Sunshine Building,Shastri Nagar, Lokhandwala Complex Road,Andheri West, Mumbai - 400 053Landmark: Suburban Diagnostics, Near Lokhandwala Circle

T: +91 22 2632 9644+91 22 4264 8740

E: info@eticawealth.com

BRIEF HISTORY

First Phase: 1964-87Unit Trust of India (UTI) was established on 1963 by an Act of Parliament. At the end of 1987, UTI had

Rs.6,700 crores of assets under management.

Second Phase: 1987-1993 (Entry of Public Sector Funds)Marked the entry of non- UTI, public sector mutual funds set up by public sector banks and Life

Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC). SBI Mutual

Fund was the first non- UTI Mutual Fund established in June 1987. At the end of 1993, the mutual fund

industry had assets under management of Rs.47,004 crores.

Third Phase: 1993-2003 (Entry of Private Sector Funds)1993 was the year in which the first Mutual Fund Regulations came into being, under which all mutual

funds, except UTI were to be registered and governed. The erstwhile Kothari Pioneer (now merged

with Franklin Templeton) was the first private sector mutual fund registered in July 1993. As at the end

of January 2003, there were 33 mutual funds with total assets of Rs. 1,21,805 crores.

Fourth Phase: since February 2003In February 2003, following the repeal of the Unit Trust of India Act 1963, UTI Mutual Fund Ltd was

formed and sponsored by SBI, PNB, BOB and LIC. It is registered with SEBI and functions under the

SEBI Mutual Fund Regulations. The AUM of 41 fund houses as at March 31, 2011 stands at

Rs 7,00,538 crores