In 2011 July I mate with Sidhharth age around 58 and he is working in one of the good brands of automaker on the senior level, when I talked to him about Retirement planning he said he was thinking since long but somehow he could not get time to do that. The issue was that he had used all his savings of PPF, GPF or other perks for the education of kids, managing home & lifestyle. Having only 5 years to plan the entire Retirement for next 25 years expected life expectancy.
3rd is classical. One of our client Shyamaji working in IT company accumulated good real estate on EMI. He had flats in Bengaluru, Pune, Nagpur as his job was beat transferable, so wherever he transferred he buy the new flat over there. Just now I come across that his job is no more because of some issue and now loads of EMI along with so many assets are unmanageable and not a single property is getting a sale out on even 10% to 20% discount prize in this market.
What these 3 stories indicate?
As per me, debriefing as Follows...
1st person loads of EMI, unplanned over expenses, No saving, stuck the person in the worst situation, no backup, unnecessary use of credit card or other expenses still driving him on EMI roads. No Shanti.
2nd person lingered the planning though he had thought of it, however somehow it gets extended without any reason, Nobody has forced him to save some amount in the right investment asset class or proper planning. whatever comes first he addressed it with full. And When real-time came he was short of time.
With our solution, this man is getting 40000.00 per month for his retirement life and his principle money is intact.
3rd is really classical, though a person is well aware of all financial products and having a good amount of knowledge as well, having great Affinity for only one asset class drag him in the problem. When he is jobless now he is not even having liquidity even if he is having so much of Asset.
So following are the points which I feel one has to follow.
1) Diversify yourself across the asset classes.
2) Do not Depend upon single income as nowadays earnings going down and expenses are going up.
3) Design your own plan with the help of Good Advisor. (Imperial finsol)
4) Drop any new expense plan which is not relevant for you.
5) Do what is required, Save As Much As possible, At least 20% of your earnings.
6) Discuss once in 3 months with your financial advisor. Talk to him every if and but.
