Gen X are primarily in the stage of retirement, having a balance working period for 1 to 14 years. They should seek financial assistance from an experienced financial planner. They should first discuss their financial capabilities, current savings and corpus, family needs, current tax structure, and wish list for purchasing a home with a lower EMI burden, accumulate wealth for family needs like son or daughter's education, marriage, medical needs, etc., and finally discuss corpus for Post Retirement Monthly Income with the financial planner. You should make plans at least a year in advance of retirement so that any mutual fund investments, if any, will be long-term in accordance with the legislation for tax benefits and used for the family's one-year post-retirement household needs.
You should be aware of the benefits and drawbacks of each requirement and anticipate that the planner will provide them with a well-thought-out, all-inclusive financial plan that is divided into sections specific to Generation X and can be accomplished or fulfilled with the aid of their own savings and potential savings during the remaining years of service or working period, which is approximately 1 to 14 years until retirement. Goals are to be set, categorising as Near Term, Short Term, Medium Term, and Long Term, looking at the excess monthly earnings over the typical monthly household expenses.
Even though they may have a great deal of experience (good or bad), members of the Generation X working group will primarily hold senior positions and be preoccupied with managing official or business matters. As a result, they are susceptible to making mistakes such as failing to visit a financial planner or engaging in self-financial planning. Individuals in this group can make very excellent money and spend more. Thus, at this point, careful financial preparation is necessary.
To find out or make clear the following, you should talk to the planner about their wish list, goals, and financial requirements.
1. Is the goal attainable throughout the remaining service period?
2. Will it result in paying more tax since any additional income will be subject to the highest Slab tax rate?
3. In comparison to other comparable possibilities, is it possible to plan differently to accomplish the goal of generating larger revenue with less tax? (Saving taxes is just as beneficial as making money.)
4. Is it a result of ignorance, over-consciousness, conservatism, or extreme aggression to deal with needless burdens?
For better planning in achieving the Wishlist / Goal / Financial Requirements, a competent planner will assist them in guiding them on the aforementioned necessary characteristics and aligning them when planning for Generation Millennials. The 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 to invest the balance in slightly higher income instruments and market-related instruments.
With all of this in mind, we have developed a calculator that takes into account all of the aforementioned factors so that you may verify and be aware of the specifics beforehand. Millennials may enter their own potential data to plan their goals step-by-step, obtain the complete financial planning outcome online, download the report for their own use, and seek additional advice by scheduling a meeting or consultation with professionals for a very little price.
Make a note of your present monthly spending and project your post-retirement monthly expenses if you plan to retire within the next one to two years. One year’s post-retirement estimated monthly expenses 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 assist you in accomplishing two goals: first, you will receive a tax-free long-term capital gain (LTCG) of Rs. 1,25,000 from an arbitrage fund that is comparable to an 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 invest and create an SIP Cycle in the selected best curated funds register with our Partnering Organisation RANKMF or/and FUNDINDIA.
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 techniques are capable of adjusting automatically to the Ups & Downs of the market, they can only ensure to achieve a 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.
Thirdly, even after creating the necessary number of monthly investment cycles using the aforementioned tools, if you still have some excess monthly earnings or if you already have some excess earnings from prior months and you want to park or invest once for a short period of time, it is advisable to park in ARBITRAGE FUND because it is more tax-efficient, has comparable safety and liquidity, and pays slightly more than Liquid Fund, FDs, RDs, Swipe-in-Sweep-out and when market is down switch from arbitrage fund to equity fund of the same company.
Click Here to access the basket of Arbitrage Funds and later on switch to Equity Mutual Fund when the market is down, taking the help of our First-in-Industry Mutual Fund DASHBOARD.
Click Here for Switching from an Arbitrage Fund to a suggested Equity Fund of the same company. Instead of doing it manually, if you want the system to do it for you, you can use the Power STP Technique, which will switch the money kept in the arbitrage fund to the equity fund each month, adjusting the amount as per the market ups and downs.
Click Here if you want to keep the money in Corporate FDs with Shriram Finance at a higher Interest Rate (Up to 8.15%) than the Bank FD rate.
If you have 5 years or more to retire, 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. Only these techniques can guarantee a higher return than standard SIPs and Recurring Deposits (RDs) since they can automatically react to market ups and downs. 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 prior months and you want to park or invest once for a short period of time, it is advisable to park in ARBITRAGE FUND because it is more tax efficient than Liquid Fund, FDs, RDs, Swipe-in, and Sweep-out with similar safety, liquidity, and slightly higher paying financial instruments.
Click Here to access the basket of best curated Arbitrage Funds.
Developing the habit of investing (with whatever money is available at the moment) when market sentiment is down for a long period of time and selling or redeeming equity funds that have been invested for at least a year when the market is high for a long period of time, using the First-in-First-out (FIFO) method. In addition to lowering market risk and allowing you to pocket the profit, this will save you Rs. 1,25,000 in annual Long Term Capital Gain (LTCG) tax. Second, when you invest the sale money, your initial investment will be raised to the extent of the profits.
Click Here To access the basket of the best-chosen equity funds with a minimum CAGR of 15% to 18% in each of the following categories: (a) very new funds within a year of NFO (New Fund Offer) but doing well; (b) new funds completing 1 to 4 years but doing well; (c) 5 years completed funds; (d) 10 years completed funds; (e) 15 years completed funds; (f) 20 years completed funds; (g) 25 years completed funds; (h) 30 years completed funds; and (i) more than 30 years completed funds. You can choose any item from the basket without going through the hassle of doing market research. If you are unable to do this, Click Here to use our partner entity's specially designed SMART switch, which will take care of it automatically based on market ups and downs.
If you have more than 5 years of working period before retirement, identify long-term goals like purchasing house, building a corpus for retirement etc. and for each of such plans, create a TIP (Target Investment Plan), Smart SIP, or SIP Plus cycle for long-term (at least five years) or until you retire. Remember that even though the cycle's intended objective might not be fulfilled, funds can be taken out of the connected fund at any moment in the event of an emergency or other circumstances.
To reach the required amount, use the following calculator to determine how much must be contributed each month for a specific time. Use the corpus calculator below to plan your medium- to long-term objectives. For a small token fee, you can also use our other Interactive Comprehensive and Additional Specialized Financial Planning Tools from our menu to better understand, plan, and download a report for further action and consultation as needed.
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.