The document provides a comprehensive guide on retirement planning, emphasizing the importance of early investment, financial discipline, and leveraging the power of compounding. It highlights Mr. Ramana's retirement goals, estimated expenses, and necessary monthly savings to achieve his desired retirement corpus. The text also explains key concepts such as rupee cost averaging and the significance of financial planning in ensuring long-term financial security.

1. Retirement Planning
Rely on Yourself

2. Retirement Planning
An Exercise of Pre-determining an individual needs on retirement
based on earnings, age, tenure of service and anticipated returns.
Financial Planning
Objective

3. Retirement PlanningFinancial Planning
May be Later
Current Age of Mr. Ramana
Expected Age of Retirement
25 years
58 Years
Expected Survival Age 80 years
Currently Monthly Expenses, ₹
Assumed Inflation
10,000
7 %
No of Years to Retirement 30 Years
Present Status Mr. Ramana
Monthly Expenses at Retirement, Inflation Adjusted, ₹ 93,253
Mr.Ramana,25 Yrs Old, thinks why to start to early

4. Retirement PlanningFinancial Planning
May be Later
Expected Annual rate of return
Number of years the fund should last
8 %
33
Corpus Required to fund your Monthly expenses post
retirement, ₹
3,17,92,553
Expected Rate of Return
No. of Years to retirement
12 %
33 Years
Available Retirement Savings 1,00,000
Investment Planning
Monthly Investment to reach the Retirement Corpus, ₹ 5,322
Retirement Corpus

5. ∞ Rely on Yourself
∞ Rupee cost Averaging
∞ Benefit of compounding
∞ Tax exemption
∞ Convenience
∞ Low investment
Retirement PlanningFinancial Planning
Benefits

6. Retirement Planning ensures that you attend
to your long-term goals before you're
tempted to spend the money on a fancy new
sound system.
Retirement PlanningFinancial Planning
Rely on Yourself

7. Retirement Planning gives investing for your
future the same importance as your other
periodic payments - your monthly bills, for
example.
As a result, you're much more likely to stick
with your plan until you reach your goal.
Retirement PlanningFinancial Planning
Rely on Yourself

8. Retirement Planning is a great way of
∞ Saving your Taxes
∞ Secure Post Retirement Life
Retirement PlanningFinancial Planning
Rely on Yourself

9. 0
200
400
600
800
Jun Jul Aug Sep Oct Nov
Unit Cost
Mr.Ramana investing in a mutual fund at regular intervals of ₹ 4,800 / Month
6 Units
8 Units
12 Units
24 Units
12 Units
6 Units
Retirement PlanningFinancial Planning
Rupee Cost Averaging

10. ∞ After six months, Mr. Ramana has 68 Units on a average of ₹423.5 / Unit
while the current market rate is ₹ 800
∞ Mr. Ramana understands market is unpredictable and the only way to
overcome unpredictability is to disciplinarily invest each month the
assigned amount
∞ Rupee cost Averaging has ensured the average Purchase cost has
remained lower than market cost
∞ Mr. Ramana understands his job is not to predict the market but only to
invest a fixed amount every month and allow Rupee Cost Averaging
technique to protect his procurement cost.
Retirement Planning Rupee Cost Averaging

11. Retirement Planning The Power of Compounding
Compound Interest
is the 8th Wonder of the World
“He who Understands it, Earns it…
He who doesn’t Pays it”

12. Retirement Planning The Power of Compounding
∞ These regular amounts of savings no matter however small they
may be shall possibly go a long way into creating a substantial
amount of wealth over a long-term.

13. Retirement Planning The Power of Compounding
Suppose you start investing in a
diversified equity MF through SIP at age
You stop investing at age
Your monthly investment
Your total contribution
Assuming Annualized return 15% from
the fund , your savings could grow to, ₹
45 years
58 years
₹ 1,000
₹ 1,56,000
4,76,000
40 years
58 years
₹ 1,000
₹ 2,16,000
10,91,000
35 years
58 years
₹ 1,000
₹ 2,76,000
23,18,000
25 years
58 years
₹ 1,000
₹ 3,96,000
1,08,72,736
30 years
58 years
₹ 1,000
₹ 3,36,000
51,18,000
Investing early allows you to rideonPower of Compounding

14. Retirement Planning The Power of Compounding
0
10
20
30
40
50
60
70
80
90
100
110
120
25 30 35 40 45
Interest Earned
Amount Saved
1.08 Crore
51 Lakhs
23 Lakhs
10.9 Lakhs
4.7 Lakhs

15. Retirement Planning Convenience
∞ One does not have to take out time from one’s busy
schedule to make his investments.
∞ One has to just submit cheques with the completed
enrollment form and can relax.
∞ ECS (Auto Debit) facility investment so simple.

16. Retirement Planning Low Investment
∞ You don’t need large sum of money to invest in equities
through Mutual funds.
∞ A sum as low as Rs.1000/- can be invested every month.

17. Retirement Planning

18. Retirement Planning
It is essential to note that it is no longer sufficient to“SAVE”- the need of
the day is to“INVEST”.
The time has come for us to look at investment avenues, which can
beat inflation and help our money to grow further in order to meet our
future requirements.

19. Retirement Planning
Mr.Ramana is working in a reputed MNC contributing ₹ 1,000 in
Retirement Corpus
Description
Age, Yrs
Age at Retirement
Excepted survival age
Assumed Inflation
No of Yrs to Retirement
Monthly expenses after retirement – Inflation adjusted
Retirement corpus – Expecting 8% as annual return
Monthly Investment to reach the Retirement Corpus
28
58
80
6 %
30
₹ 68,922
₹ 189,68,675
₹ 2,760
Retirement Corpus

20. Retirement Planning
?
So when is the best time to invest?
This month???
Next month…???
Every month… starting right now.

21. Retirement Planning Choice of Fund
∞ More than 2500 Mutual Fund schemes are available more
schemes are to be launched…
∞ Choice of fund is dictated by individuals risk profile and
investment horizon…
∞ Do contact to draw-up a most suitable portfolio of
Mutual fund scheme

22. +91 44 4265 3003 contact@purplepond.in www.purplepond.in
PurplePond Investment Advisory (P) Ltd,
Suite: 603, 6th Floor, Challamall, # 11/11A, Sir Theyagaraya Road, T.Nagar, Chennai - 600017
Thank You ...