Are you seeing your retirement years coming up in the years ahead – imminent and inevitable? It is never too late to start funding your retirement income through annuities, insurance, and mutual funds.
Let us offer you the optimum retirement plans for you!
At Primetime Consulting, we’re dedicated to excellence. Since operating in 2003, we have kept up with the latest developments. We are qualified on numerous professional fronts and strive to give every client our full and undivided attention. As a financial services company that offers various services, we manage all aspects of our client’s investment needs.
Compounding means the cumulative effect of adding the return earned on the value of an asset which has increased in value already by a return during earlier period. Simply put… Rs 100 earns Rs 10 and is added back to the original capital to be Rs 110 which will earn Rs 11 and the total capital is then Rs 121. In the third period the amount earned at same return of 10% is Rs 12.1 and the cumulative capital is Rs 133.1. .. if it goes on like this for 20 years the accumulated capital will be Rs 672. By 50 years it will over Rs 11739.
In equity investments the returns are volatile and returns vary year on year. So for one year it may be 10% and in the next 2-3 years it may average 14% . It may even deliver negative returns. But historically businesses have grown in a upward trajectory – they may have changed a lot but the funds applied would have generally earned a higher rate of return . The compounded effect of the average higher return give a huge difference in the corpus being build up by an investor. If the average return across is 14% after 20 years Rs 100 would be Rs 1374. In 50 years it will be Rs 70023.
So, for an extraordinary wealth accumulation it is be invested for a long term and primarily in a well-managed equity portfolio.
Equity investments in the long term has historically outperformed all other investments. This does not mean that it is a invest and forget matter. Equity investments needs to be monitored and managed accordingly. Professional fund managers studies companies in all respects and includes them in the portfolios they manage.
For business owners and managers, the drivers for higher returns are the projected needs of higher growth and profitability. Towards these objectives a long-standing business will be continuously exploring new opportunities, innovations, improving efficiencies and expansion plans. As a result, investments in well managed businesses invariably delivers higher returns in the long-term evening out the interim volatilities.
Volatility is inherent to equity investments, but it seen that a well-managed business’s valuations pick up from the downside and move ahead in an upward trajectory. Off course there are pitfalls on the way – the owners change, the industry in which the company operates will have periodic long term cycles, technology advancements can outpace a company, national fiscal policies, macro- economic issues at the global level, political turmoil and mismanagement .
But the quest for wealth eventually triumphs.
Compounding means the cumulative effect of adding the return earned on the value of an asset which has increased in value already by a return during earlier period. Simply put… Rs 100 earns Rs 10 and is added back to the original capital to be Rs 110 which will earn Rs 11 and the total capital is then Rs 121. In the third period the amount earned at same return of 10% is Rs 12.1 and the cumulative capital is Rs 133.1. .. if it goes on like this for 20 years the accumulated capital will be Rs 672. By 50 years it will over Rs 11739.
In equity investments the returns are volatile and returns vary year on year. So for one year it may be 10% and in the next 2-3 years it may average 14% . It may even deliver negative returns. But historically businesses have grown in a upward trajectory – they may have changed a lot but the funds applied would have generally earned a higher rate of return . The compounded effect of the average higher return give a huge difference in the corpus being build up by an investor. If the average return across is 14% after 20 years Rs 100 would be Rs 1374. In 50 years it will be Rs 70023.
So, for an extraordinary wealth accumulation it is be invested for a long term and primarily in a well-managed equity portfolio.
Equity investments in the long term has historically outperformed all other investments. This does not mean that it is a invest and forget matter. Equity investments needs to be monitored and managed accordingly. Professional fund managers studies companies in all respects and includes them in the portfolios they manage.
For business owners and managers, the drivers for higher returns are the projected needs of higher growth and profitability. Towards these objectives a long-standing business will be continuously exploring new opportunities, innovations, improving efficiencies and expansion plans. As a result, investments in well managed businesses invariably delivers higher returns in the long-term evening out the interim volatilities.
Volatility is inherent to equity investments, but it seen that a well-managed business’s valuations pick up from the downside and move ahead in an upward trajectory. Off course there are pitfalls on the way – the owners change, the industry in which the company operates will have periodic long term cycles, technology advancements can outpace a company, national fiscal policies, macro- economic issues at the global level, political turmoil and mismanagement .
But the quest for wealth eventually triumphs.
The earlier you start saving/ investing, the more you can accumulate for your retirement.
It is best to start investing and saving as soon as you earn. This way, your investment gets more time to grow. Later you will realize how powerful compounding is and how it makes a huge difference in returns.
You should also create a nest egg by putting aside a certain fixed amount every month, according to your affordability. These act as safety cushions/ parachutes and can be used for any future contingency. You will do well to look into equity, mutual funds, and guaranteed income products. PTC is just a phone call away, so do reach out to us if you need assistance.
That is entirely dependent on you. One can learn to live with their means. The issue here is the pension adequate for sustaining your living standards for the long terms. Government pensions under the old pension scheme had a mechanism to protect against inflation and as a result pension incomes would rise periodically. This is proven unsustainable, and a fixed income regime is being implemented now. As a result, the pension income may not be adequate for the long term considering the inevitable inflation.
So, it is prudent to have additional income sources for your retirement. Rentals incomes, mutual fund withdrawals are alternative arrangement you can plan for. An equity linked investment alone will protect you from inflation. Other wise surpluses in your current income needs to be reinvested again into savings for future incomes.
More? Financial planners often recommend replacing about 80% of your pre-retirement income to sustain the same lifestyle after you retire. This means that if you earn Rs.100,000 per year, you will aim for at least Rs.80,000 of income (in today’s rupees) in retirement.
Retirement incomes should sustain a lifestyle you are used to and ideally what you may be aspire to. Retired life should be active and one should take it as an opportunity to take up long withheld interests. Travel, social activities, hobbies, physical exercises should be large part of your life. Then there can be debilitating medical issues, support for children, siblings and even friends.
So ideally your retirement income should be as much as your last earned income and growing in the future. A well planned and disciplined effort in your earning years will hold your retirement finances in a strong footing for this. We at PTC are at your service.
The lifestyle you are used to should be maintained. So in the first place live within your means so that retired life expense are well within your means to start with.
For many, retirements take away many perks of employment. Your access to many benefits, facilities and support systems may be curtailed. Travel expenses, club memberships, medical insurances, subscriptions amongst all other things should be considered. Then there are additional capital expenses like a new motor car down the years to be considered. Have you considered that in old age you may need more support – a driver, servants at home may even a home nurse. So do away with the notion of a scaled downed requirement during retirement. To look forward to a happy retired life requires you to be adequately funded in the first place.
Not one investment type fits the bill for all what you need in retirement. Your incomes and investments should be protected from your own tendency for undisciplined spending or even over withdrawals from your capital. An ill informed diversion to an risky investment at this stage can ruin your finances and then your lifestyle.
A basket of income streams will provide for a base level of protected income, another stream of flexible income to access for increasing requirements and emergencies , A nest egg for some future investments be it a holiday home or a vacation package or a medical emergency corpus should also be provided for.
A well planned investment portfolio will sustain your capital, provide for increasing expenses, will be adequately liquid , tax efficient and easily managed.
Income baskets are groups of different types of income based on factors like stability, needs, the longevity of income, manageability, taxation, and corpus appreciation. The basket concept helps taxpayers understand which sources of income provide them with gains and which provide them with losses.
Face yourself in the mirror
· When will I retire
· What I want to retire
· When can I access it, what is my income now
· How much can I save
Put all this together and plan. It is best to ensure a professional help you with this. After this, we can help you to implement it for you.
Ask yourself the following hard questions – when do you intend to retire, and how much money do you think you will need then, how much of your current income can you save now, what are the best investment options available, when can you access the savings? After this exercise, you might have a general idea but may not know how to proceed. It is best to seek professional advice to help you with your retirement planning. After this, PTC can help you to implement it.
Many. To start with make your mind when you want to retire. If no time horizon is in sight plan for a projected requirement from a normal retirement age… say 60 years . You may still earn actively but your retirement portfolio should be all set. Many components of the portfolio may be planned to start yielding for a later year . All of this can be worked out.
Factors to be then considered are how much income, by when, how much is the base level of protected income, which component of the retirement portfolio will grow to match inflationary pressures and increasing demands. Check how long this can be sustained.
An integrated portfolio of income streams can be implemented and we at PTC will handhold you in this journey.
I highly recommend Antony K A of Primetime Consulting to anyone who is looking for professional and personalized retirement planning implementation. As someone who was feeling overwhelmed and unsure about my retirement savings and plans, Primetime Consulting provided me with invaluable support throughout the entire process!
We are associated with Primetime Consulting for all our insurance requirements. We will entrust them for implementing our upcoming requirements to set up a incomes well into our years. We are definitely looking forward to work with them seeing their experience for the same!
We have been associated with Mr. Antony of PrimeTime Consulting since 2003 for all kind insurances and investments. Now we are in process of implementing retirement income plans with them and it was a helpful and supportive journey with PrimeTime Consulting!
I have initiated our retirement investments with Mr. Antony. They have a great understanding of the investment options available which makes my planning easier!
