Welcome to life's Golden day

Investoshashtra!!!📜📜📜

ईन्वेस्टोशाष्त्र!!!📜📜📜

Today is one of the most happiest day of my life - yesssss it's RETIREMENT hip hip hurray...

Today is the day I waited for life...with lot of dreams and aspirations of doing a whole lot of things.

Today I don't have a fixed schedule or daily commute or any stress related to job or profession.

Today I can spend time with friends and loved ones, time for hobbies, travel and exploration, giving back to society, personal growth and a lot more.

But only worrying thought I have amidst all this celebration is, will my kitty be sufficient to live and pursue my and my spouse's dreams happily and comfortably, Will it last for my lifetime?

So,I can't plan it haphazardly which I might regret later with no time left for course correction..

I need to understand today all the variables which can affect my life.

Like a Rs.2 crore retirement kitty gets wiped out or will be zero by the time I will reach 82 assuming total monthly expense of Rs.70k (including medical, travel, festivals, kids and grand kids etc.) and my own inflation rate of 8% (Including lifestyle inflation) with 7% rate of return (post tax).

Why did it happen?? 

The only reason is while planning I forgot the biggest devil for my retirement life i.e. inflation and taxes...

I invested assuming that interest earned today on my corpus of 2 crore is much more than the present expense of 70k/month. So my corpus will keep growing and I can comfortably live on interest component.

The fact is even though in initial years interest earned on kitty is going to be much higher than monthly expenses. But slowly with passing years expenses will keep scaling higher, whereas interest income will remain stagnant or might reduce due to reduction in interest rate.

It will eventually result in eating up capital or need compromise on life style or/and living standard.

I need to ensure that my  retirement for which I was waiting for life, shouldn't convert into a curse due to rising medical cost, inflation,taxes and higher life expectancy.

It is very important while planning the retirement that I earn a return higher than my inflation (not what the government declares) and that too net of taxes so that capital can remain intact rather keep growing.

Retirement planning is not a one-time task but a lifelong process. 

So, let's discuss clear cut layout, plan it and ensure that my retirement remains a happy  vacation and not only today every day becomes a golden day of my life......

Regards,

Raj Talati

No IPL or Politics for us

The most hot topic of discussion or time-pass these days is IPL and politics.

Normally, a player have limited career. Inspite of being in form they get retired in late 30's or many a times even in mid 20's. Think of a person getting retired in 30's and kind of retirement planning he would require to live atleast 50-60 years.

Atleast for cricketers IPL came as the biggest saviour to boost their career and delay retirement.

Similar, is the case with politicians, they hardly retire. If retirement is enforced even at age of 91 years they make a headline.😜

Most of us are not a cricketer or politician or an actor, but luckily our career graph is much longer.

In the era of fast changing technology and being one of the youngest country, we might not have option to delay our retirement. As our job might become obsolete or will be taken away by an youngster.

*Skip one match of IPL or hot debate of prime time and plan for your retirement corpus judiciously during this working years, we won't have any IPL or political career to support us.*

Regards,
Raj Talati
www.rajtalati-abminvestment.blogspot.com

Was part of Panel discussion for knowledge series on debt conducted by Reliance MF in association with Cafemutual

Are Disclaimer's and warnings getting robotic ???

Investoshashtra!!!📜📜📜

ईन्वेस्टोशाष्त्र!!!📜📜📜

"If necessary due to a sudden change in cabin pressure, an oxygen mask will drop from the panel above your seat.Reach up and pull the mask to your face. This action will start the flow of oxygen. Place the mask over both your mouth and nose."

We have heard above warning with demo every time we onboarded a flight. Inspite of that many pessengers on Southwest flight 1380 seemed to be erroneously using their mask.

Flight almost descended 20000 feet in 7 seconds, a women killed when she was partially blown out of a broken window not wearing her seat belt.

It is a normal human behavior that we get so habituated of warnings and disclaimer. It becomes almost robotic when you memorize it and looses it's significance.

Specially in Investment world every one of us ignore such disclaimer's as they are very lengthy and Ambiguous.But later on play blame game.

Let's today remind ourselves of 3 disclaimers which are of extreme importance in present scenerio :

1) Mutual Investment are subject to market risk.

2) Past performance is not necessarily indicative of future performance of the schemes.

3) Please consult your financial advisor to know how "Mutual fund is right (Sahi hai)" for you.

So never ever ignore fine prints in Investment. If not sure it's better to consult a professional.

"If you think financial planners are expensive, try ignorance".

Have a great weekend.

Which Investor category you belong to..

Investoshashtra!!!📜📜📜
ईन्वेस्टोशाष्त्र!!!📜📜📜

According to a Chinese proverb there are 4 categories of people :

1)He who *knows*, and *knows* he knows, he is *a wise man*

2)He who *knows*, and *knows not* he knows, he is *asleep*

3)He who *knows not*, and *knows* he doesn't know, he is *a child*

4)He who *knows not*, and *knows not* that he doesn't know, he is *a fool*

The problem is percentage of people doubles as you move up the hierarchy and  more than 80% fall in final 2 categories.

In financial world, most of the time initial investment success makes investor's overconfident and tends to believe that they belong to category 1😊😊. But by the time they realize that actually they belonged to category 4, it's too late.😪😪

Frankly most of so called _*"Experts"*_ also don't fall in category 1 as it requires regular upscaling of knowledge and skills to maintain that spot.

Investors in category 2 or 3 are at lesser risk, as good professional advisor can help and ensure that their financial goals are met.

Irony is majority of investors fall in category 4 and they are ignorant about it. I pray to God to watchover and protect them.

Have a wonderful weekend...

Inheriting Wealth or Mess

Investoshashtra !!!📜📜📜
ईन्वेस्टोशाष्त्र !!!📜📜📜

When we born we were like tender flower.But in zest of living life unknowingly we accumulate so much of trash (for others) which becomes difficult to manage for next generation.

Recently, I come across couple of cases where children's have settled down abroad and parents are no more. 

Parents had bank account with multiple banks, investments in all possible instruments like LIC, Bank FD, Postal Schemes,MF,Shares, SCSS etc etc.. and cherry on the top had several real estate.

Misery is now kids themselves doesn't know about what they have inherited whether it is a wealth or mess.

More than grief of losing parents they are worried about sorting out this mess in little time they have.

In Gujarat this is the story of most of the  families and will grow bigger as migration of next generation is increasing more and more.

So if you are one of such parents try consolidating holdings and limit it to financial assets as you grow older, which will ease transmission. 

Most important - Create will. If you fail to do so you become a reason for dispute amongst your own children's who had harmonious relationship when you were alive.

Try and *inherit memories, values together with wealth, but not the mess.*