- What is retirement planning?
In simple words retirement planning is planning to be happy post retirement. Our primary goal in life is to be happy!! We may say we want to be ‘Rich’ but what we truly aim for is to be ‘happy’. We confuse ‘being happy’ with ‘being rich’. Now during our working life, typically between the age of 25 to 60 years, we have a steady income and we find means and way to spend the money in order to be happy. And we would all secretly wish that the arty continues till the day we die. Unfortunately post retirement the money inflows abruptly stop post retirement – but the expenses keep increasing!! Retirement planning is the solution to this problem. It is a method whereby you save sufficient amount for your future and ensure that the music never stops and the party does continue till you live!! And you can quite literally be 18 till you die!!
- What is the right age to plan for retirement?
While there is no right age to plan for retirement, the sooner you plan the better the results. The objective of doing the retirement planning is basically to calculate the level of “savings” at which you can retire and withdraw from the same for the rest of your life. It is common sense that the sooner in your life you get to know about the golden figure, the sooner you can start saving towards it and the sooner you start saving towards your retirement corpus, the lesser amount you will have to save per month. Nowadays, most of us want to retire by the age of 45 or at max by the age of 50. Hence, ideally, you should do your retirement planning before the age of 35 so that we get at least a time frame of 10 – 15 years to save towards the retirement corpus.
- Is retirement planning a complex process?
If you have the right approach, then the answer is no! However, unfortunately we have made our life so complicated that everything starts looking complex. Retirement planning is actually a pretty straight forward process and boils down to one million dollar question – “What kind of life you want to life post retirement?”. Once you decide on that, we do the rest of the calculation and arrive at the corpus you need to build before you can retire. We also help you in building the corpus by guiding you on the various investment options available. Financial issues, just like life, becomes so much simple if you take the right advice at the right time, make a right plan, have faith and be sincere.
- What details do I need to provide?
Just like when you go to a doctor, the more details you give regarding your health, the better the diagnosis that the doctor can do and the better medications he can recommend. Similarly, when you come to us for financial health check-up, the more details you tell us about your financial history, financial present and financial future, the better can plan your retirement and the better investment options we can suggest. The details will include answers to the questions such as:
i. Your current income
ii. Your current monthly household expenses
iii. Your current other expenses (shopping, holidays, entertainment, etc)
iv. Your current expenses on kid’s (school fees, tuitions, etc)
v. Your plan for your kid’s future (higher education, marriage, etc)
vii. Your plan for your post retirement life (what kind of life, how much will it cost per month, etc)
vii. Your other goals in life (vacations, pilgrimage, charity, etc)
- Is retirement planning a one-time activity?
No plan in life can be a one-time activity. Every plan is based on certain facts and certain assumptions. These facts as well as assumptions are based on various factors and as such are subject to change. Hence it is highly recommended that a person does a periodic reality check of his/her plans and align them, if required, with the changes in the facts and assumptions.
- What do you mean by ‘retirement is not a factor of age’?
We constantly keep hearing to statements such as “I will retire at 45”.. or “I will slog till I am 40 and after that I will retire and all my time would be for my family”. While these things sound pretty good, however they are not realistic. How can one retire at the age of 45 if he does not accumulate enough savings to suffice for the rest of his/her (& the spouse’s) life? Further, how would anybody know how much savings he/she needs to accumulate to ensure that it will suffice for the rest of his/her (& the spouse’s) life? Hence if you think rationally, you will realise that retirement is a factor of your savings and not of your age. If you accumulate “sufficient” savings, you can retire at the age of 30.. why wait till 45?!!
- Why do I need a financial planner for my retirement planning?
Please refer to our blog “Why do I need a financial Planner”.
- What will be the charges?
Please write to us for a quotation or click here
- How long will the process take?
Typically, we will have need to have two meetings. In the first meeting, we brief you about the points that we will be discussing in the second meeting. Between the 1st & 2nd meeting, you and your spouse discuss amongst yourselves and decide on the various points that will be discussed in the second meeting. In the second meeting, we have a detailed discussion on the points so as to gather all the details which will help us in preparing a robust retirement plan for you. Between the 2nd & 3rd meeting, we prepare a robust retirement plan for you. In the 3rdmeeting, we tell you how much retirement corpus you need to build in order to live a retired life you desire, we explain you the logic behind the calculation, we make any changes that you might require and once we finalize on the corpus we finalize the plan to achieve the corpus. The entire process usually takes a week’s time which is not bad considering the fact that together we are planning for a good 45 years of your life post retirement.
- Why Strategik Financial Services?
At Strategik Financial Services we have a perfect blend of experience and expertise. Our team comprises of a Chartered Accountant, Lawyers and experienced marketing personnel. At Strategik Financial Services, we are extremely sincere about being sincere. We believe in having a very strong friendship with our clients and we rejoice your financial success and happiness.
- What are the various instruments available for investments & why do I need to know about them?
Broadly speaking, the various investment instruments can be classified into Short Term and Long Term Investments instruments:
- Short Term Investment instrument comprise of – Savings Bank Account, Money Market Funds and Bank Fixed Deposits, etc
- Long Term Investment instrument comprise of – Post office savings scheme, PPF, NSC, Company Fixed Deposits, Bank Fixed Deposits, Bonds & Debentures, Mutual Funds, Life Insurance Policies, Equity Shares, etc.
- How do I choose from the various instruments?
The selection of investment instruments depend on various parameters such as – (a) Rate of return, (b) Liquidity, (c) Your financial Goals, (d) Your risk appetite, etc.
- Why do I need to know about all the investment options?
Imagine going to the road side small shop to buy grocery and then imagine going to a huge departmental store to buy the same grocery. You will agree that by going to the departmental store, you will be able to explore all the options available and possible get a better quality product for a lower price. Likewise, knowing all the various investment options available enables us to make a better choice and thereby earn a better return on our investments at a lower risk.
- Why should I investment in more than one instrument?
You must have heard of a general proverb “Don’t put all your eggs in one basket”. Having a diversified financial portfolio not just ensures that your risk is diversified, but it also ensures that your returns are maximized. One predominant excuse we have for not investing in different investment instruments is that it is too much of a hassle to maintain various paper documents and to remain in touch with different investment agents. However if you approach a right financial planner, you will be able to get all the alternatives under one roof – besides all the investments are in demat format and can be held in your demat account.
- Why Strategik Financial Services?
As Strategik Financial Services –
- You get expert advice from qualified professionals
- You need not go to different agents for different instruments since we sell all the products (Mutual Funds, Corporate FD, Insurance Policies, Shares, Bonds, etc) of all the companies under one roof
- We send you periodic update about the status of your investments and the value as on date
- You can call us anytime to know the value of your investments
- We keep you updated about any new investment instrument that is launched in the market as soon as it is launched in the market so that you can reap the benefits of the same
- We provide end-to-end solution for all your investment needs
- Our fees are extremely nominal. You can contact us for more details
- What are the different types of loans available in the market?
Broadly loans can be availed in the below mentioned forms: Home Loan, Personal Loan, Vehicle Loan, Education Loan, Gold Loan, Loan against insurance policies, Loan against Bank FDs, Loan from PPF or EPF, Loan against Shares or Mutual Funds, Loan from unrecognized sector, etc.
- Why do I need to know about all the types of loans available in the market?
The different types of loan have different formalities, different processing charges and different rate of interest. Hence it is very important that a person takes the right type of loan depending on the purpose. Else there is a risk of paying higher cost in the form of processing fees and interest cost.
- What are the pre-requisites for availing the loan?
The pre-requisites differ with the types of loan and the different banks. You can contact us for more details
- How is my loan eligibility calculated?
Your loan eligibility is calculated based on various factors such as your income, your existing loans, the purpose of loan, repayment capacity, your age, etc. Also different banks have different methodology of calculating the loan eligibility of a person. You can contact us for more details
- What documentations do I need to provide?
Different documents are required to be submitted to the bank for different types of loan. You can contact us for more details.
- I keep hearing about CIBIL. What is it?
CIBIL stands for Credit Information Bureau (India) Limited. It is the first credit information company in India, established in August 2000. The company collects and maintains credit records of individuals as well as commercial entities. This includes borrowing and payments related to loans and credit cards.
- What is CIBIL score? What impact does it have on my loan eligibility?
CIBIL plays a major role in loan application and approval processes. Without a satisfactory CIBIL score, you may not be eligible for many loans. After you fill and submit your loan application form, a bank will first check your credit score and credit report. If you have a bad credit history and a low credit score, the bank may outrightly reject your loan application. Only if your credit score is good will a bank consider your loan application and pass it through for approval. CIBIL scores are the deciding factor for many banks when it comes to considering your application. The higher the score, the higher the chance your loan application will be reviewed and approved. However, the decision to approve your loan application is completely dependent on the bank; CIBIL as an institution does not play any role here.
- Why Strategik Financial Services?
Those who have applied for a loan anytime in their life would agree that applying for the loan is a very tedious affair. Besides there is always a risk of rejection due to several reasons. At Strategik Financial Services we ensure that:
- We understand your need and suggest the right type of bank
- We approach only those bank which has lowest interest rates, low processing fees and most convenience
- We give you a complete checklist of all the details required
- We collect the details / documents from you and prepare a proposal complete in all respect
- We discuss with the bank and complete all the formalities
- We charge you fees only after the loan is sanctioned. Our fees are extremely nominal. You can contact us for more details