Welcome

वा भमान से
of आ म नभरता क और
Annuity
Let’s first understand the
HUMAN LIFE STORY…
 As You Like it
Let’s first understand the
HUMAN LIFE STORY…
Let’s first understand the
HUMAN LIFE STORY…
Lets Understand Human Life Story

Till age 25 Age 25 to 55 Retirement

Dependent on Parent Self-Dependent Dependent on ?

 How you invest
 Where you invest
 How much you invest
What has changed?

‘Shrinking work years’ is a worry

Older Retired (10 yrs)
Learner (20 yrs) Earner (40 yrs)
Generations
0 20 60 70

Current Learner (25 yrs) Earner (30 yrs) Retired (30 yrs)
Generations
0 25 55 85
Delayed start Early Longer
of career Retirement lifespan
What has changed?
‘The 30-30 rule of Living Life

Older Current
Generations Generations

Age 20 to 60 Age 60 - 70 Age 25 to 55 Age 55 - 85

Work for 40 years Retire for 10 years Work for 30 years Retire for years 30

This compels us to think: “Are we really ready for retirement?”

 Set Goals

Financial planning without goals means….

…. You are playing football without goal post
INDIANS LOVE MOVIES
WHY PLAN for RETIREMENT ?
Correct Advice
Let’s first understand the
HUMAN LIFE STORY… WEALTH
is
HEALTH
Yes you read it
Right

??
?
Everyone is habitual of getting Regular Income before
getting retired

Salaried Business People Professional

s
SALARY CREDITS STOPS BUT EXPENSES
CONTINUE….
Why is regular income required post retirement?

Increasing Nuclear
Life
Expectancy Family

Inflation
 FIVE STAR PRIORITIES

Completing Medium term Life Long term Regular

EMERGENCY MEDICAL EXPENSES Income
RESERVE RESPONSIBLITIES Goals
2 years’ expenses Allocate Funds for (Vacation,Hobby,Gifts)
Second Innings
in employment
 Health Insurance Clearing Debt  Debt Fund
 Savings Bank  Medi-claim Pension/Annuity
Children’s Goal-  MIS
 Short Term FD
 Liquid Fund Education & Non Taxable Whole Life
 Medium/long term solutions with
 MIS Marriage FD Guaranteed Additions
Home Building  Non Taxable regular EQUITY-Direct/MF/ULIP
income Solutions
What does a Retiree NEED?
Safety of Principal

Promised Rate of Return @ promised time

Inflation Beating Return

Tax Efficiency

Hedging Reinvestment Risk- Long term Guarantee

Liquidity

Flexibility & Immediate Access for contingency

 Retirement Planning: 30-30 Dilemma

Safety vs Return HOW TO

BALANCE BEST of
Guaranteed on rate vs Rate of return All Worlds
???
Guaranteed rate vs Taxability

Inflation vs Return

Hedging Reinvestment Risk- Cost of Long-term Guarantee

Liquidity & Cost of Liquidity

Flexibility & Immediate Access for contingency

Planning Retirement of Spouse

RETIREMENT PLAN PYRAMID

TAX

Retirement
Planning

INTEREST
INFLATION
RATE
WHERE DOES INDIA INVEST?
Insurance is second highest investment instrument after bank deposits

Source: http://content.icicidirect.com/mailimages/FinSaving.htm
Interest Rate Trends
Trends of Interest Rate
INFLATION BALLOON
Regular Income Sources in India

• Rates guaranteed only for limited period

• Reinvestment Risk
• Low Interest Rates

• Returns Not Guaranteed

• Less Awareness regarding Fund Selection
• Volatile as per the Market and Scheme opted

• High Risk of Volatility

• High Knowledge of Equity Market required
• Returns keep on Fluctuating. Investment may become Zero

• No Risk Associated / Rates GUARANTEED for Life

• Taxable
• Less Flexible
Life Insurance Moderate to High
 A SAMPLE RETIREMENT PLAN
Tax Reivestment
Purpose Amount Horizon Instrument Perspective Risk
Fixed
Deposit/Post
Office
Contingency-2 Years MIS/Liquid Declining Interest
Expense 1500000 2-3 years Fund Taxable Return rate
Pradhan Mantri Interest Rate
Medium term Cash Vyay Vikas Revision after 5
Flow 1500000 10 years Yojna Taxable Return Years
Whole Life/
Truncated
Whole Life
Long Term Cash Flow 8000000 10-25 years Solutions Non Taxable NONE
Debt &
Balanced Fund- Capital gains
Wealth Accumulation 2000000 7-10 years Mutual fund Taxable N.A.
Debt &
Balanced Fund- NON TAXABLE
Wealth Accumulation 2000000 10-20 years ULIP CAPITAL GAIMS N.A.
60 is the NEW 40

All it Takes is Little Planning

 3 KEYS TO SECOND CHILDHOOD

• Convert TAXABLE ASSET to NON TAXABLE ASSET

• Convert FALLING INTEREST RATE to LONG TERM GUARANTEE

• Move from Rigid Products to Flexible Solutions

 1 Annual Inves tment 2500000 Tax free
2 Annual Inves tment 2500000 371578 Tax free
3 Annual Inves tment 2500000 371578 Tax free
4 Annual Inves tment 2500000 371578 Tax free
Taxable Pension to 5
6
Annual Inves tment
Annual Inves tment
2500000
2500000
371578
371578
Tax free
Tax free
Non Taxable Asset Allocation 7
8
Annual Inves tment
Annual Inves tment
2500000
2500000
371578
371578
Tax free
Tax free
12500000
Solution 9 Inves tment Holiday 371578 Tax free
10 371578 Tax free
11 371578 Tax free
12 371578 Tax free

CASE STUDY-1 13
14
FROM TAXABLE
PENSION TO
371578
371578
Tax free
Tax free
15 371578 Tax free
16 NONTAXABLE 371578 Tax free
ASSET CREATION
Capital & Returns are SAFE 17
18
371578
371578
Tax free
Tax free
19 371578 Tax free
20 371578 Tax free
Liquidity from 2nd or 3rd Year 21 371578 Tax free
22 371578 Tax free
23 371578 Tax free
Capital is returned in shortest possible 24
25
Comparison with 371578
371578
Tax free
Tax free
Property
span 26
27
NON TAXABLE RENT for 371578 Tax free
Tax free
371578
40 years
28 371578 Tax free
29
Capita Recovered Rent 371578 Tax free
Tax Free Earning continues year on year 30 continues 371578 Tax free
31 Resold again at 3.69 CR 371578 Tax free
32 371578 Tax free
Retirement Corpus is not BLOCKED 33
34
371578
371578
Tax free
Tax free
entirely 35 371578 Tax free
36 371578 Tax free
37 371578 Tax free

Flexibility in Annual Withdrawal amount 38

39
CREATING TAX 371578
371578
Tax free
Tax free
40
FREE Legacy for 371578 Tax free
41 Children & Grand 371578 Tax free
Hassle Free Legacy Planning 42 Children 371578 Tax free
43 371578 Tax free
44 371578 Tax free
45 371578 Tax free
21802000
 Taxable Pension to Year
1
Outflow
Annual Inves tment
Investment Annual Payout Bulk Payout
4000000 Tax free

Non Taxable Asset Allocation 2

3
Annual
Annual
Inves tment
Inves tment
4000000
4000000
532000
532000
Tax free
Tax free

Solution 4
5
Annual
Annual
Inves tment
Inves tment
4000000
4000000
532000
532000
Tax free
Tax free
6 Annual Inves tment 2000000 532000 Tax free

CASE STUDY-1 7
8
Annual
Annual
Inves tment
Inves tment
2000000
2000000
532000
532000
20000000
Tax free
Tax free

(contd.)
9 Inves tment Holiday 532000 Tax free
10 532000 Tax free
11 532000 Tax free
12 FROM TAXABLE 532000 Tax free
13 PENSION TO 532000 Tax free
Capital & Returns are SAFE 14
NONTAXABLE 532000 Tax free
15 532000 Tax free
ASSET CREATION
16 532000 Tax free
17 532000 Tax free
Liquidity from 2nd or 3rd Year 18 532000 Tax free
19 532000 Tax free
20 532000 Tax free
Capital is returned in shortest 21
22 Comparison with Property
532000
532000
Tax free
Tax free
possible span 23 NON TAXABLE RENT for 40 532000 Tax free
24 532000 Tax free
25
years 532000 Tax free
Capital Recovered Rent
Tax Free Earning continues year on 26
27 continues
532000
532000
Tax free
Tax free
year 28
29
Resold again at 3.69 CR 532000
532000
Tax free
Tax free
30 532000 Tax free
31 532000 Tax free
Retirement Corpus is not BLOCKED 32 532000 Tax free

entirely 33
34
532000
532000
Tax free
Tax free
35 532000 Tax free
36 CREATING TAX 532000 Tax free
Flexibility in Annual Withdrawal 37 FREE Legacy for 532000 Tax free
38 532000 Tax free
Children & Grand
amount 39
Children
532000 Tax free
40 532000 Tax free
41 532000 Tax free
Hassle Free Legacy Planning 42
43
532000
532000
Tax free
Tax free
44 532000 Tax free
45 532000 Tax free
36980000
 A Lavish Property
OUR SOLUTION.
worth Rs.2 Cr.
You have worked hard to
Earn Money…Now Let your
Hard Earned Money work
for you.

You will Get

Monthly Rental Income 40,000.00
Yearly Rental Income 480,000.00  NON TAXABLE RENT GUARANTEEE of for 40 plus years
You will have to Pay
Maintenance Cost @ 1%/ Year 200,000.00
 CAPITAL BACK in 9YEARS
Corporation Taxes - Property Tax 25,000.00
Total 225,000.00
Net Income from the Investment from Rs.2 Cr.
 PROPERTY APPRECIATION VALUE in 40 YERAS
Your Income from Rent /Year 480,000.00
Your Expenses for your Property/Year 225,000.00
Net Income 255,000.00
 CASE STUDY-2
(Deferred Annuity & Participating Product)

Receive Payout Life long

Additional Payout Till Base Sum Additional
from 2nd Year
Base Sum Total Premium Payment in Such time LA is Assured ( Death Benefit
Year onwards till
Assured Paid the11th Year alive ( Every Death Benefit) applicable after
age 75 ( Tax
(Tax Free) Year 11th Year Tax Free 11th Year
Free) Onwards)

1 4500000 1,022,768 - 4,700,000

2 4500000 1,022,768 151,810 4,700,000
3 4500000 1,022,768 151,810 4,700,000
4 4500000 1,022,768 151,810 4,700,000
5 4500000 1,022,768 151,810 4,700,000
6 4500000 1,022,768 151,810 4,700,000
7 4500000 1,022,768 151,810 4,700,000
8 4500000 1,022,768 151,810 4,700,000
9 4500000 1,022,768 151,810 4,700,000
10 4500000 1,022,768 151,810 4,700,000
11th-39th Year 4,700,000
10,227,680 1,366,290 4,263,098 158,871 2,842,065
40th Year 8,893,575 4,700,000 7,542,065
 CASE STUDY-3
Deferred PENSION Vs. FIXED DEPOSIT
Payment Term 10 72.6%
more in
No. of Years 20 KPPP vs. FD
SA 1688106.00
Tax slab 30.00%
Kotak Premiere Pernsion Plan
Annual
Year Investment Rate of Interest Post Tax Maturity (Guaranteed Maturity value)
1 1000000 6.25% 2154677.83 -1000000
2 1000000 6.0000% 2008519.11 -1000000
3 1000000 5.7500% 1881329.17 -1000000
4 1000000 5.5000% 1770561.56 -1000000
5 1000000 5.2500% 1674073.83 -1000000
6 1000000 5.0000% 1590061.33 -1000000
7 1000000 4.7500% 1517002.93 -1000000
8 1000000 4.5000% 1453616.50 -1000000
NON
9 1000000 4.2500% 1398822.42 -1000000 TAXABLE
10 1000000 4.0000% 1351713.56 -1000000 Withdrawal
=1,78,6860
11 3.7500% 0 vs.
16800378
12 3.5000% 0 from FD
13 3.2500% 0
14 3.0000% 0
15 2.7500% 0
16 2.5000%
17 2.2500%
18 2.0000%
19 No EXTRA 1.7500%
20 Risk or 1.5000%
Total INVESTME 16800378.25 29781000
NT
 WEALTH INCOME- WHEN MONEY WORKS HARDER

EXTRA RETURNS WITHOUT EXTRA RISK or EXTRA INVESTMENT

Early Bird
Rewards
 WE WILL DROP IN DIGITALLY

 FOR FEEDBACK

 FREE FINANCIAL HEALTH REPORT

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Discussion