Gen X are mainly is the stage of retiring having working period of around 1 year to 14 years should seek financial help from an experienced financial planner need to first share their financial capabilities, existing savings and corpus, family requirements, current tax structure and Wishlist of buying a house with less EMI burden, accumulate wealth for family’s requirements like son/daughter’s Study, marriage, medical requirements etc. and finally corpus for Post Retirement Monthly Income (Retirement Corpus Planning) with the financial planner. They should plan at least 1 year prior to retirement so that the investments, if any in Mutual Funds will be Long Term as per the law which is to be used for family’s one year household expenses after retirement. They should know the pros and cons of all the requirements and expect from the planner to provide a well thought of comprehensive financial plan breaking it into segments relating them to Generation X which can be achieved or fulfilled with help of own savings and possible savings in the balance period of service or working period of around 1 to 14 years till retirement. Goals are to be set looking at the excess monthly earnings over and above the regular monthly family expenses categorizing as Near Term, Short Term, Medium Term and Long Term. Working group from Generation X are will be mainly in senior positions busy in managing official or business stuff, vulnerable to commit mistakes of not visiting to a financial planner nor they will do any self-financial planning on their own though they may be very highly experienced (Good or Bad). People from this group may be having very good earnings as well as increasing expenditure. So proper financial planning is required at this stage. They should discuss their Wishlist/ Goals/ Financial Requirements with planner to know/ clarify the following:
1. Whether Goal set achievable or not within the balance period of Service?
2. Whether it will be turning into payment of higher tax as any incremental income will be taxed at highest rate of Slab?
3. Whether it is possible to plan differently to achieve the goal generating higher income with lesser tax as compared with other similar options? (Saving of Tax is also as good as earning)
4. Whether due to lack of knowledge, it is turning to an over-conscious / conservative or highly aggressive situation to face unnecessary burdens?
For better planning in achieving the Wishlist/Goal/ Financial Requirements, a good planner will help them to guide on the above required parameters and align them while planning for the Generation Millennials. Planner should also provide the practical/actual work path to implement their plan and review the same periodically so that the Plan is not over hyped / anxious or due to poor practical knowledge, the plan is not able to give the required result. The best option typically to plan for Millennials is to optimize the available secured and government backed traditional income sources and then slightly higher income instruments and market related instruments. Keeping all this in mind, we have created a calculator considering all above parameters to check and know the details in advance. Millennials to feed their own possible data for planning for their Goals step by step to get the final financial planning result on-line and to download the report for self-reference and for further consultation by requesting a meeting/consultation with experts with a very nominal fee.
If you are going to retire in next 1 to 2 years, jot down and calculate your current Monthly Expenses and estimated post-retirement monthly expenses. One year’s post-retirement estimated monthly expenses is to be contributed to an arbitrage fund, which will be used for financing the immediate requirement of monthly expenses after retirement through a monthly SWP Cycle of one year. This will help you achieving two things, one you will get the LTCG (long Term Capital Gain) of Rs.1,25,000/- from Arbitrage Fund similar to Equity Fund. Secondly one year’s post-retirement expenses will be arranged till the completion of 1 year of your retirement fund investment to make it LTCG. To create SIP Cycle in selected best 10 arbitrage fund Click Here.
If you have more than 2 years of working period, create one or more Smart SIP Plus or SIP Plus or a Smart SIP cycle or in combination depending upon your excess monthly earning amount, which will earn on an average of 15% to 18% per annum. As these are capable of adjusting automatically to the Ups & DOWNs of the market, these only can ensure to achieve superior return than the normal SIP and as well as Recurring Deposits (RDs). To take advantage of these Advanced Well-Tested Tools free of cost, Click Here to register with our partner entity. Even after creating the required number of monthly investment cycles taking the help of above tools, if you still have some excess monthly earnings or if you already have some excess earnings from previous months and you want to park / invest one time for short term, then it is advisable to park in ARBITRAGE FUND as it is more tax efficient than Liquid Fund, FDs, RDs and Swipe-in and Swipe-out with similar safety, liquidity. Click Here to access the basket of 10 best curated Arbitrage Funds and Click Here for Corporate FDs. (On Clicking, if already registered in rankmf.com, request for login and after login, the landing page to take straight to the basket of Arbitrage Fund and Link for Corporate FDs).
If you have 5 years or more working period, create one or more Smart SIP Plus or SIP Plus or a Smart SIP cycle or in combination depending upon your excess monthly earning amount, which will earn on an average of 15% to 18% per annum. As these are capable of adjusting automatically to the Ups & DOWNs of the market, these only can ensure to achieve superior return than the normal SIP and as well as Recurring Deposits (RDs). To take advantage of these Advanced Well-Tested Tools free of cost, Click Here to register with our partner entity. Even after creating the required number of monthly investment cycles taking the help of above tools, if you still have some excess monthly earnings or if you already have some excess earnings from previous months and you want to park / invest one time for short term, then it is advisable to park in ARBITRAGE FUND as it is more tax efficient than Liquid Fund, FDs, RDs and Swipe-in and Sweep-out with similar safety, liquidity and little higher paying Financial Instruments. Click Here to access the basket of 10 best curated Arbitrage Funds. When there is good investment opportunity available due to share market being very down, it is advisable to invest in Equity Mutual Funds by switching the money invested in ARBITRAGE FUND and/or along with any excess money available with you and wait for one year. It is advisable to make it a practice to invest (whatever money available that particular time) when market is down for a consecutive longer period. Similarly, redeem/sale/withdraw money from Equity Funds which are invested in the last one year or more on FIFO (First-in, First-out) method. This will serve two purpose, one you will be encashing the profit and reducing the market risk and will be saving tax on Long Term Capital Gain (LTCG) of Rs.1,25,000/- every year. Secondly, your base investment amount will be increased to the extent of the earnings when you invest the proceeds from the sale. Click Here To access the basket of Best 10 Equity Funds with CAGR of Minimum 15% to 18% from each category of (a) new funds but doing good, (b) 5 years completed fund, (c) 10 years completed funds, (d) 15 years completed funds, (e) 20 years completed funds, (f) 25 years completed funds and (g) more than 25 years completed funds so that you can directly pick and choose any one from the basket without any hassle of doing market research. If you are not in a position to track market, then Click Here to take the help of tailer made SMART Switch from our partner entity which will do it for you automatically as per the market UPs and DOWNs.
If you have more than 5 years of working period before retirement, long term goals like Son or Daughter’s Study Abroad, their Marriage, Buying House etc. and finally for creating a Corpus for Retirement, plan for each such goal to build a corpus by creating one TIP (Target Investment Plan) or Smart SIP Plus, Smart SIP or SIP for long term (Minimum 5 years or more). Keep it in mind that money can be withdrawn from the attached fund of these cycles at any point of time in case of emergency or any on-towards situations though the purpose for which the cycle was created may not be achieved. Use the following Corpus Calculator to know the monthly amount to be contributed for a certain period of time to achieve the required amount.
If you are planning to buy a house from out of your own savings, please check our Housing Solution Calculator to get fair idea to take an informed decision.
You can also use our other different Interactive Comprehensive and Additional Specialized Financial Planning Tools from our menu for better understanding, planning and downloading a report for further necessary action and consultation as required at a nominal token amount.
After going through the above, if you have decided to buy the house by availing a home loan instead of using own savings/investments, apply below for Instant Home Loan Sanction Letter, by giving your details. Please keep in mind that there should be at least 6 months to 1 year working period for availing the home loan for at least 15 years to make the EMI as low as possible so that the EMI can be met out of your saving/investments by way of monthly SWP instead of using your regular income.