Embed Size (px)
Citation preview
Retirement PlanningRely on Yourself
Retirement Planning
An Exercise of Pre-determining an individual needs on retirement
based on earnings, age, tenure of service and anticipated returns.
Financial Planning
Objective
Retirement PlanningFinancial Planning
May be Later
Current Age of Mr. Ramana
Expected Age of Retirement
25 years
58 Years
Expected Survival Age 80 years
Currently Monthly Expenses, ₹
Assumed Inflation
10,000
7 %
No of Years to Retirement 30 Years
Present Status Mr. Ramana
Monthly Expenses at Retirement, Inflation Adjusted, ₹ 93,253
Mr. Ramana, 25 Yrs Old, thinks why to start to early
Retirement PlanningFinancial Planning
May be Later
Expected Annual rate of return
Number of years the fund should last
8 %
33
Corpus Required to fund your Monthly expenses post retirement, ₹
3,17,92,553
Expected Rate of Return
No. of Years to retirement
12 %
33 Years
Available Retirement Savings 1,00,000
Investment Planning
Monthly Investment to reach the Retirement Corpus, ₹ 5,322
Retirement Corpus
∞ Rely on Yourself
∞ Rupee cost Averaging
∞ Benefit of compounding
∞ Tax exemption
∞ Convenience
∞ Low investment
Retirement PlanningFinancial Planning
Benefits
Retirement Planning ensures that you attendto your long-term goals before you'retempted to spend the money on a fancy newsound system.
Retirement PlanningFinancial Planning
Rely on Yourself
Retirement Planning gives investing for yourfuture the same importance as your otherperiodic payments - your monthly bills, forexample.
As a result, you're much more likely to stickwith your plan until you reach your goal.
Retirement PlanningFinancial Planning
Rely on Yourself
Retirement Planning is a great way of
∞ Saving your Taxes
∞ Secure Post Retirement Life
Retirement PlanningFinancial Planning
Rely on Yourself
0
200
400
600
800
Jun Jul Aug Sep Oct Nov
Unit Cost
Mr. Ramana investing in a mutual fund at regular intervals of ₹ 4,800 / Month
6 Units
8 Units
12 Units
24 Units
12 Units
6 Units
Retirement PlanningFinancial PlanningRupee Cost Averaging
∞ After six months, Mr. Ramana has 68 Units on a average of ₹423.5 / Unitwhile the current market rate is ₹ 800
∞ Mr. Ramana understands market is unpredictable and the only way toovercome unpredictability is to disciplinarily invest each month theassigned amount
∞ Rupee cost Averaging has ensured the average Purchase cost hasremained lower than market cost
∞ Mr. Ramana understands his job is not to predict the market but only toinvest a fixed amount every month and allow Rupee Cost Averagingtechnique to protect his procurement cost.
Retirement Planning Rupee Cost Averaging
Retirement Planning The Power of Compounding
Compound Interest
is the 8th Wonder of the World
“He who Understands it, Earns it…
He who doesn’t Pays it”
Retirement Planning The Power of Compounding
∞ These regular amounts of savings no matter however small theymay be shall possibly go a long way into creating a substantialamount of wealth over a long-term.
Retirement Planning The Power of Compounding
Suppose you start investing in a diversified equity MF through SIP at age
You stop investing at age
Your monthly investment
Your total contribution
Assuming Annualized return 15% from the fund , your savings could grow to, ₹
45 years
58 years
₹ 1,000
₹ 1,56,000
4,76,000
40 years
58 years
₹ 1,000
₹ 2,16,000
10,91,000
35 years
58 years
₹ 1,000
₹ 2,76,000
23,18,000
25 years
58 years
₹ 1,000
₹ 3,96,000
1,08,72,736
30 years
58 years
₹ 1,000
₹ 3,36,000
51,18,000
Investing early allows you to ride on Power of Compounding
Retirement Planning The Power of Compounding
0
10
20
30
40
50
60
70
80
90
100
110
120
25 30 35 40 45
Interest Earned
Amount Saved
1.08 Crore
51 Lakhs
23 Lakhs
10.9 Lakhs4.7 Lakhs
Retirement Planning Convenience
∞ One does not have to take out time from one’s busy
schedule to make his investments.
∞ One has to just submit cheques with the completed
enrollment form and can relax.
∞ ECS (Auto Debit) facility investment so simple.
Retirement Planning Low Investment
∞ You don’t need large sum of money to invest in equities
through Mutual funds.
∞ A sum as low as Rs.1000/- can be invested every month.
Retirement Planning
Retirement Planning
It is essential to note that it is no longer sufficient to “SAVE”- the need of the day is to “INVEST”.
The time has come for us to look at investment avenues, which can
beat inflation and help our money to grow further in order to meet our
future requirements.
Retirement Planning
Mr. Ramana is working in a reputed MNC contributing ₹ 1,000 in Retirement Corpus
Description
Age, Yrs
Age at Retirement
Excepted survival age
Assumed Inflation
No of Yrs to Retirement
Monthly expenses after retirement – Inflation adjusted
Retirement corpus – Expecting 8% as annual return
Monthly Investment to reach the Retirement Corpus
28
58
80
6 %
30
₹ 68,922
₹ 189,68,675
₹ 2,760
Retirement Corpus
Retirement Planning
?
So when is the best time to invest?
This month???
Next month…???
Every month… starting right now.
Retirement Planning Choice of Fund
∞ More than 2500 Mutual Fund schemes are available more
schemes are to be launched…
∞ Choice of fund is dictated by individuals risk profile and
investment horizon…
∞ Do contact to draw-up a most suitable portfolio of
Mutual fund scheme
+91 44 4265 3003 [email protected] www.purplepond.in
PurplePond Investment Advisory (P) Ltd, Suite: 603, 6th Floor, Challamall, # 11/11A, Sir Theyagaraya Road, T.Nagar, Chennai - 600017
Thank You . . .
