Planning for our retirement – Lambi Innings Ki Taiyari
All of us experience many events
during our lifetime, be it marriage, birth of a child, marrying off our
children, death of a loved one and so many. Some of these events bring immense happiness
and some profound sadness. Whatever may be the emotions that these events bring
about in our lives, the memory of it fades over time and we become oblivious of
the fact in such a way that it gets absorbed in our lives.

 

We all need to work for some or
major part of our lives to earn a livelihood and then retire for different
reasons. Reasons for retirement may vary from attained satisfaction to not
being able to work any further due to ill health or just the compulsory
retrenchment due to attainment of a certain age.

 

Oh retirement!
 
Retirement is perhaps one of the
most important events in our life that we may ever experience.  Of course, we all wish to retire comfortably,
but how many of us really achieve the privilege of doing so considering the
complexity in building up a retirement plan built up with extensive and
sensible planning and years of persistence.

 

A little homework, a systematic
and attainable savings and investment plan and of course a long term commitment
is all it needs to ensure that you carry it well into your golden years.
 
Do I need to plan?
 
For many of us who are earning a
decent salary with an even decent and seemingly reasonable savings in our bank
account to splurge on necessities and luxuries alike, this may seem to be a
trivial question.

 

Though we may consider ourselves
to financial wizards in our own count, what we don’t realise is that our
popular belief about the best way to save for the future could be totally
contrary to what the key components of retirement planning properly implemented
should be to guarantee a financially secure retirement.
 
The flexibilities of life to deal with
 
Life surely tends to keep
throwing us a curve ball every now and then. It may be a Googly, a Doosra or
may be a Yorker, but we need to be prepared well to face the ball as it comes
beaming at us. These spinning balls may be in the form of unforeseen illness,
the financial needs of our children or dependents or the uncertainty of the
returns from risk bearing investments.

 

Life’s unpleasant uncertainties
force us to maintain a secure nest egg. This nest egg is what will help in
smoothing out the financial hiccups over the long run, so that we are not
forced to liquidate our assets to cover our expenses during our retirement
years. This golden egg will only ensure that rather than leaving a financial
legacy for our loved ones or worse still, becoming a financial burden on our
family, we can rather contribute to our children and grandchildren’s lives, be
it by splurging on their luxuries and needs, financing their education, by
gifting a portion our nest egg or just simply ensuring that the estate and
assets that we built up painstakingly are passed on to them in inheritance and
on which we assign so much sentimental value.
 
How would I know how much I need to retire?
 
At a first glance, this so much
relevant question seems to be unanswerable, plainly because the amount of money
we would need depends upon a number of factors including our desired standard
of living, our expenses, our medical needs and most importantly our target
retirement age.

 

But just a little thought
applied, all these seem so simple like a mystery unfolding by itself. If we
pose a few questions to ourselves and try to answer them, it becomes so much
easier to determine the reasonable money needed for our retirement needs.
 
We just need to answer for
ourselves a few simple questions and they would be:
 
(a)    When
do we plan to retire, i.e. at what age?
(b)   Assume
or decide how much monthly income we would need to sustain at present level of
earnings.
(c)    Scale
it up till the year of our retirement considering the annual inflation factor
(maybe safely and conservatively considered at 4-5%).
(d)   Total
up all our current savings and investment which earn us regular returns.
(e)   Determine
the monthly real rate of return on our investment today.
(f)     Scale
it up till the year of our retirement considering the annual inflation factor
(maybe safely and conservatively considered at 4-5%).
(g)    The
resultant figure is what we need for our monthly expenses post retirement.
If the resultant figure in (f)
above is equal to or more than the figure in © above, then we are securely
planned. If it is negative, we need to worry, for we are short planned for our
future.
 
From where will this shortfall money come from?
 
We have mentioned earlier and at
the cost of repetition, we repeat that we are earning a decent salary with an
even decent and seemingly reasonable savings in our bank account to splurge on
necessities and luxuries alike.

 

We just need to cut down on the
little luxuries a bit, maybe skip that extra movie a month, or that one
additional dine-out at the fine-dine restaurant, expenses which are dead cost
not providing any returns financially, and just deploy these finds in
reasonably moderate risk but decent returns yielding investments.
 
Here comes Reliance Retirement Fund:
 
This is an open ended notified
tax savings cum pension scheme managed by highly professional fund managers who
would invest the corpus in open income oriented funds giving us the benefit of draw
down as required during retirement.

 

Its advantages! Oh! There are
many, but few to list out here, it is a tax efficient SWP, has the potential to
grow corpus over time thus providing a scope for better returns. The
investments primarily focus on income generation, growth assets for fighting
inflation and enable draw-down without depleting the corpus.

 

Talking of key features, it
allows:
 
1.       Unlimited
switch between schemes
2.       Bare
minimum exit load of 1% on redemption before the age of 60, subject to a
lock-in period of just 5 years.
3.       Auto
transfer facility where the entire investment can be switched from wealth
creation plan to income generation plan according to our needs.
4.       Facility
to accumulate using both SIP and lump sum over the earning years.
5.       Facility
to use systematic withdrawal plan (SWP) to use only what is needed after
retirement.

 

 

The nagging Question, Can I afford it?
 
Reliance Retirement Plans by Reliance Mutual Fund answers the nagging question by explaining that it just takes a little sensible planning and a happy retirement is well within the reach of most of us. 



A little planning and we ensure that we need not spend our retirement days living frugally, whereas we can make it a life of joy and dignity, filled with the thrill of discovering new things, and pursuit of new interests and passion. In short, a second innings in our life, when we play the doosra, the googly, the yorker or the beam-ball with utmost comfort and dispatch it to the boundary with disdain.

The Bloggers Meet:


Reliance Capital Asset Management had joined hands with BlogAdda wherein select bloggers were called upon to be given an introduction to the various retirement plans.

Image courtesy: Blogadda and fellow bloggers



It was truly an amazing interactive session with the top brass of Reliance Capital led by the ever-cool Mr. Sundeep Sikka, CEO,  the self-admittedly over-dressed but absolutely flawless Mr. Himanshu Vyapak, Deputy CEO, Mr. Ajay Jethi, CMO and Mr. Sharad Goel, CCO taking pains to lucidly explain the juggernauts of how to save early to retire happily to the largely young crowd of bloggers.


Image courtesy: BlogAdda and fellow bloggers



It was a very knowledgeable session with veterans like me or novices like my daughter and the other bloggers present understood  the simple tricks of planning for retirement.

 

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Ping Pay, the fun and easy way to transfer funds
Once
upon a time, not quite long ago in history, sending money to someone was such a
big exercise.
An exercise,
sure it was which involved issuing a cheque or even going to bank to get a
draft made, sending it across to the intended recipient, who again would make
that boring stride to the bank to deposit the instrument, and then wait till
eternity for the clearing system to work till the funds gets transferred to the
account.
Sounded like
a boring Bollywood story. Indeed it was, and tedious too. So tedious that the
transferor used to invent ways and means to avoid transferring funds.
I remember
my student days, perhaps three decades ago, when I used to run out of my pocket
money at my hostel towards to end of the month, and I would telegram my Dad,
And quite
expectedly, I would get a return telegram from my Dad,
Banking and
fund transfer, surely, has come a long way since then. And leading the way in it
is Axis Bank with its latest initiative, the Ping Pay.
It is a
unique multi-social payment solution which enables customers to transfer money
to anyone, including non-Axis Bank customers using the hugely popular social
and messaging channels like WhatsApp, Facebook, Twitter or even Email. The only
simple condition specified that the person needs to be on the transferor’s
phone contact list. And its not just money transfer, this can be used for
mobile phone recharges as well.
Ping Pay
offers instant, 24×7, absolutely safe and convenient interbank electronic
transfer service through our mobile smart phones. The fund transfer is instant
and real time using the NPCI’s Immediate Payment Service, more commonly known
as IMPS.
With a
present transaction and per day limit set for Rs.50,000, Ping Pay has been
introduced by Axis Bank with a strategic plan of bringing superior customer
convenience, embedded in a seamless and secure process, to finally realize the
dream of turning India into a paper money less economy.
Axis Bank
has been quite innovative in realizing and tapping the huge prepaid mobile
market including the facility of sending person-to-person mobile recharges in
this Ping Pay App.
The
technology for this amazingly wonderful App has come in partnership with Fastacash,
a Singapore based, venture-capital backed firm, which has the dream of bringing
its technology to end users by partnering with banks, mobile operators,
remittance companies, payment service providers and mobile wallets as its endeavor.
Any person
can download the Ping Pay App and sign up using their registered mobile numbers
to receive money, with the only condition that the transferor needs to a an
Axis Bank account holder.
The fund
transfer procedure has been made so hassle free that the App users need not
even type in the account number and IFSC Code. To send money, the account
holder needs to just choose any of the social or messaging channels available
on his mobile phone, select the name of the person to whom the money is sent, enter
the amount that he wishes to send, and set his own unique “ping code” which is
immediately shared separately with the receiver via SMS or email. As soon as
the transaction is confirmed, the money is immediately sent with the recipient
receiving a message on the social or messaging channel opted by the sender.
The receiver
has 15 days with him to accept and get the money transferred to his bank
account and if he does not do it within this specified time period, the amount
gets auto-reversed to the sender’s account.
If I had
forgotten to mention, there is an option to “Ask for Money” or “Ask for
Recharge” too, probably built into this “seamless” App for the “shameless” kids
demanding from their Dads, the way I used to do, three decades back. The receiver
needs to just put in a request for funds or seek recharge from their friends
and family across the social media. And I am sure; the sender would not have
such easy excuses as my Dad had at those times.
Smitten by
this App already? Then watch this video to be further amazed.

This post is about DigitalAxis meet conducted by Axis Bank in association with Blogadda.com

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My review of the Edelweiss Tokio Life – Criticare+ policy
Hey
there! Do I really need
Insurance?
 
We
are living in an amazingly fast faced world today. It’s a world where rapid
advances in technology have ensured that we get better medical treatments which
may result in increasing our life spans. However, one important aspect which
this rapid pace and blinding speed in advancement of technology has failed to
address is the amount of stress that it brings along with it.
Increased
stress is synonymous with falling ill. And more the stress more will be the
criticality of the illness. A critical illness like a heart attack may just
abruptly cut short our ability to work and earn apart from the added pressure
of the mounting medical expenses to take care of the same.
It
is absolutely necessary that we plan well in advance for any such eventualities
and ensure that we and our family does not suffer when we are faced with any
such serious illness. This is where an impaired health solution in the form of
a critical illness plan comes handy which ensures that the financial liability
is well taken care of as we work towards our recovery.
Which
Company should I be thinking of?
 
When
it comes to Life
Insurance
, which other Company can we think of other than the world’s
leading two financial services and insurance brands joining hands to provide us
the best solutions suited to our needs. Yeah! I am talking about Edelweiss
Tokio Life Insurance, which is a joint venture between Edelweiss Financial
Services, Mumbai, one of India’s leading financial services group and Tokio
Marine, one of the largest insurance companies in Japan.
Can
anyone tell me what the Plan all about is?
 
Edelweiss
Tokio Life Insurance
has come up with this amazing plan to take care of the
financial vagaries of all our critical illness. This is called the Edelweiss
Tokio Life Criticare+ Policy
. To summarize, this is a non-participating, no
linked critical
illness
plan that covers a wide range of about 17 illnesses. Not only does
it help to take care of the medical illness expenses and day to day expenses,
it also ensures that all future premiums are waived off after the first claim
so that we continue to be protected without paying anything.
Just
summarise the Plan for me buddy!
 
The
entry level for this Plan is immediately upon attaining majority, i.e. at 18
years and you can enter till the ripe old age of 60 years, with the maximum
maturity age being 70 years. The plan also provided both short term and long
term schemes with minimum and maximum policy terms of 5 years to 30 years. The
premium payable is annual with a minimum premium of just Rs.2,000/- so that the
entry is kept open to even the lowest financial class. The minimum premium
provides a sum assured of Rs.5 lakhs whereas it would go up to even Rs.1 crore.
I
forgot to mention one wonderful thing that Edelweiss Tokio assures us in this
premium payment. The premium rates are guaranteed for the first five years and
even thereafter it is reviewable only with the prior approval of IRDA.
What
more can you ask for with a minimum initial waiting period of just 90 days, a
survival period of just 28 days and a waiting period between multiple claims of
just a year.
Could
the benefits be summarized for me as well?
 
The
benefits are galore to be summarized, honestly. In a nutshell, this plan offers
two options of single claim
and multi-claim. Under the single claim option, a lump sum equal to the sum
assured will be payable and under the multi-claim option, the benefit can be
availed for a maximum of 3 claims, subject to only once from each group.
The
17 critical
illnesses
covered are categorized into 4 groups, as follows:
Group-I:
Open Chest CABG, First Heart Attack of specified severity, open heart
replacement or repairs of heart valves, kidney failure requiring regular
dialysis, transpolant of major organs like heart and kidney, stroke resulting
in permanent symptoms, and aorta surgery are covered.
Group
II: Aplastic Anaemia, Cancer of specified severity, Benign Brain tumour and
major organ transplants like bone marrow, liver, lungs and pancreas are
covered.
Group
III: Permanent paralysis of limbs, coma of specified severity, major burns and
total blindness are covered under this group.
Group
IV: Motor neurone disease with permanent symptoms and multiple sclerosis with
persisting symptoms are covered here.
Being
the businessman in me, I would look for tax benefits as well!
Of
course, we should. Maturity and Death benefits are tax free under section
10 (10) (D) of the Income Tax Act, 1961
. Premium payments are allowed as a
deduction from the taxable income under section 80D of
the Income Tax Act, 1961
.
Hey!
I am going for it; just have a recap of the benefits umbrella!
 
Seven
reasons I would go for this plan:
1.
I stay protected against 17 critical illnesses.
2.
I get lump sum benefit on the diagnosis of the
critical illness under the single claim option.
3.
I can claim upto three times during the policy
term under the multi-claim option.
4.
I get waiver from payment of future premiums
after the first claim in multi-claim option and I stay protected for free for
the remaining term of the policy.
5.
I increase my sum assured and I get higher
discounts on the premium amount.
6.
The product is designed so simple that I
understand it so well.
7.
I get tax benefits for the premium paid and for
the claim amount.
So
there, let’s go for this amazing product from Edelweiss Tokio Life Insurance,
which is called Edelweiss Tokio Life – Criticare+ and forget about living with
impaired health. For more details of this product, please do visit them at www.edelweisstokio.in or email them at care@edelweisstokio.in

 

Edelweiss
Tokio understands that “Insurance
Se Badkar Hai Aapki Zaroorat

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