This document provides information about financial planning for retirement. It discusses the importance of saving 10-50% of annual income and investing savings in a diversified portfolio of equity, debt, gold and cash. Life insurance is also recommended to protect family. The document notes that financial planning is needed due to inflation, rising costs of goals, and changing life stages. It provides examples of asset accumulation and investing savings to grow a retirement corpus. Overall, the document emphasizes the importance of financial planning and disciplined saving/investing over one's career to ensure sufficient funds for a comfortable retirement.

1. FINANCIAL
PLANNING
FOR
LIFE

2. LIFE NOW
• EARNING
• AIMLESS SPENDING
• WEEKENDS,Travels etc.
• GET-TOGATHERS,PARTIES etc.
• UNNECESSARY PURCHASES
• AIMLESS INVESTMENTS

3. HOW MUCH YOU ARE SAVING
• Bare minimum: 10
• Good: 10-25%
• Very Good: 25-50%
• Excellent: Above 50%

4. Why Financial Planning?
Financial Planning
Inflation
Future cost of important
goals would be much
higher than present
Lack of planning
is the biggest cause of
financial stress
Traditional investment
not as attractive
Changing Life Stage
& Life Style Needs
Vacation, Gizmos, Car,
House, Children…

5. INDICATIVE FINANCIAL PLAN
You are expected to save 50% of your annual income
To Insure your life is your first priority
You require Life insurance equal to twelve times of your annual
income
Residue should be invested as follows
Equity/Mutual Funds
Recurring Deposit
Gold
Land/Property but with due precaution

6. TO GROW A RETIREMENT CORPUS
INVEST IN
EQUITY (Blue chip) 40%
DEBT 50%
GOLD 5%
CASH 5%
ALTERNATIVE TO THE ABOVE IS MUTUAL
FUNDS

7. Financial Planning is incomplete
without Life Insurance
Through Life Insurance one has to set up Goals
for:
• How much life insurance one needs to protect
his family if something was to happen to him
• Children,s education and marriage
• Emergency Medical Expenses
• As a thumb rule you should have insurance as
8 times of your annual earnings

8. ESTATE ACCUMULATION
DURING THE EARNING PERIOD
• HOUSE/FLAT/LAND
• GOLD/SILVER
• PROVIDEND FUND/GRATUITY
• SHARES/DEBENCHORS
• MUTUAL FUNDS
• NATIONAL SAVINGS CERTIFICATES
• VEHICLES

10. • Retirement planning means making sure you
will have enough money to live on after
retiring from work.
• Should be the best period of your life, when
you can literally sit back and relax.
• To achieve a hassle-free retired life, you need
to make prudent investment decisions during
your working life

11. • Planning for retirement is as important as
planning your career and marriage.
• Compulsory savings in provident fund through
both employee and employer.
• It may not be enough to support you
throughout your retirement.

12. • Life takes its own course and from the poorest
to the wealthiest, no one gets spared.
"Everyone grows older". We get older every
day, without realizing. However, we assume
that old age is never going to touch us.
• The future depends to a great extent on the
choices you make today. Right decisions with
the help of proper planning, taken at the right
time will assure smile and success at the time
of retirement.

13. • Nuclear families and its attendant insecurity.
• Increasing uncertainties in personal and
professional life.
• The growing trends of seeking early
retirement and rising health risks are among
few important risks.
• Falling interest rates and the sustained
increase in the cost of living.

14. • If you are young, retirement may be the last
thing on your mind. But if you think you have
a long way to go for to plan for retirement,
think again.
It is never too early to prepare for retirement,
especially if you want to maintain the same
standard of living that you would have got
accustomed to by then.

15. • Let's assume that you are a 35 year old, earning Rs.3
lakh per annum.
• Your salary grows at 5% per annum and you plan to
retire after 25 years. Under these circumstances,
assuming your post-retirement requirement would
be 60% of your last annual income (Rs.10 lakh
approx).
• You would need about Rs.6 lakh per annum after
retirement. To achieve this, you need a retirement
corpus of Rs.75 lakh assuming you earn a return of
5% per annum over a period of 20 years.
• To meet this goal, you would have to invest more
than Rs.9,000 per month at 7% per annum for the
next 25 years. Inflation and tax implications have not
been considered for simplicity.

16. • The key to a financially independent future is
"sooner the better".
• Cautious investors not only save, they save
early and regularly. . The catch is to make the
power of compounding work one's benefit.

17. • Retirement should be kept as a top priority
because;
• if one does not keep it at the top one might
end up depending on one's children, which
probably no one would relish.

18. • Saving and investing regularly makes a big
difference at the time of retirement. Investing
at regular intervals builds your retirement
fund over time and helps you to minimize risk
and gives a tension free retirement-a time to
pursue your hobbies, fulfill your dreams and
passions.

19. • Saving and investing regularly makes a big
difference at the time of retirement. Investing
at regular intervals builds your retirement
fund over time and helps you to minimize risk
and gives a tension free retirement-a time to
pursue your hobbies, fulfill your dreams and
passions.

20. This is the usual picture of a soon to be retired person.

21. Retired is being twice tired,
I have thought
first tired of working.
then tired of not
Richard Armour

22. • High percentage of people die during their
first year of retirement .One of the reasons
being psychological trauma. A sense of feeling
that you’re a worn out individual and should
be placed in the corner of the house sitting
idle most of the time.

23. • Retirement is the point where a person is not
in any kind of employment/ bussiness
/occupation
• This usually happens upon reaching a
determined age ,when physical conditions do
not allow the person to work any more

24. RETIREMENT IS A PROCESS
• People frequently underestimate of this
transition
• At least 1/3of retirees experience difficulty
making the transition to retirement
• Planning makes a difference

25. The following changes can be viewed as a
normal part of aging
• Decreased cognitive capacity
• Increased depression
• Increased fears of illness
• Increased agitation
• Decreased performance speed

26. TWO STAGES OF
RETIREMENT PLANNING
Pre-retirement planning
Post-retirement planning

27. Need for retirement Planning
• Increased life span
• Unintended contingencies
• Increasing medical cost
• Diminishing trend of joint family
system

28. LIFE EXPECTENCY
Life expectancy is the measure ruler of
retirement planning.
With the increasing life expectency,high
standards of living and high expectations for
the upcoming future,pressure is building up
for fund allocation,to meet up the needs of
retirement.
Longivity of life expectancy has to be kept in
mind while making out a retirement plan

29. PREPARE PSYCHOLOGICALLY
WHAT IS YOUR ATTITUDE TOWARDS RETIREMENT
Is it an ending, a beginning or both

30. FEW WAYS TO STAY ACTIVE
Physical activity
Meet friends
Help grandkids
Go on a Holiday
Social Work
Use Your Skills
Pen them
Join course

31. Today’s Retirement
• Presents many complex social emotional and
financial issues
• Marriage and other familial and social
relationships
• Care giving responsibilities and living
arrangements
• Role Loss/Gain
• Decreased abilities and loss of independence
• Grief
• Time Management
• Rework
• Fixed/Reduced income

32. Prepare for family change
• How will you realign your marital relationship?
• How will you renegotiate the division of household
chores?
• What activities will you do jointly and individually?
• How will you set limits and boundaries around your
new found free’time?
• What care giving tasks will you have to assume?
• Are you meeting your own needs as well as those of
others?

33. Retirement Impacts Marital Life
• Lack of consensus on retirement expectations
will cause problems
• Wives complain of husbands invading their
‘domen’ and requiring attention

34. PREPARE FOR SOCIAL CHANGES
• With whom you will keep in touch?
• From whom do you receive support?
• To whom do you provide support?
• How do you plan to meet new friends?
• How will you keep in touch with old friends
and former work colleagues?

35. ESTATE PLANNING WITH RETIREMENT
PLANNING
• ESTATE PLANNING IS THE PROCESS OF
DISPOSING OF AN ESTATE
• VARIOUS TOOLS OF ESTATE PLANNING ARE
USED LIKE WILLS,TRUSTS,GIFTS Etc.

36. BEFORE THE DAY OF YOUR RETREMENT
• PAY ALL DUES
• PAY ALL OUTSTANDING BILLS
• PAY ALL OUTSTANDING LOANS

37. ON RETIREMENT WHAT SHALL BE WITH YOU
•FIXED ASSETS
»HOUSE/FLAT/LAND
•LIQUID ASSETS
»PROVIDENT FUND
»GRATUITY
»FIXED DEPOSITS
»LEAVE ENCASHMENT

38. Which are the investment avenues for your liquid
assets
• MIS
BANK DEPOSITS
• CO-OP. SOCIETIES
• NSC
• SHARES/DEBENCHORES
• MUTUAL FUNDS
• PENSION SCHEMES

39. DIVIDE LIQUID ASSETS EQUILLY AND NOMINATE
RESPECTIVE HEIRS
DO NOT NOMINATE MINORS

40. HOW TO DISPOSE OF GOLD/SILVER
• SELL THE ORNAMENTS IN YOUR LIFE
TIME
• ENCASH IT
• DIVIDE IT EQUALLY AMONGST YOUR
HEIRS

41. HOW TO DISPOSE OF YOUR HOUSE/FLAT/LAND
ETC.
VEHICLES
OTHER HOUSEHOLD ARTICLES
Discuss and achieve common consensus
Amongst
Sons/Daughters
In-laws

42. IF YOU INTEND TO REWORK
INVESTMENT AGENCIES
TEACHING
GENERAL ADMISTRATION EXECUTIVE
LEGEAL PRACTICE
IF YOU INTEND TO DO SOCIAL WORK
JOIN NGO
MARRIAGE BUREAU
START SOME ACTIVITY IN YOUR LOCALITY

43. Become a Saver, Wise Spender and better Investor