Thursday 26 February 2015

Would you like to have best retirement plan in the world ?



Your Morning Tea is ready .It is freshly prepared with unique blend of exotic ingredients handpicked from the chosen fields ,gently simmered  & made by time tested preparation methods, passed through many quality parameters laid down by Tea Tasters , aroma of this tea is heavenly & taste is simply divine.You simply can’t resist it.One sip & your mind, body awakens to the new realm of soul satisfying enrichment.

Similarly we at retirementontrack understand the importance of retirement planning very well & design solutions which not only meets the expectations of investors along with expenses of the future but gives lot of elbow room  in doing surplus things which may not have planned  initially.

For us retirement planning is mission .we are passionate to be able to help our investors. Ride this phase in most beautiful way so that growing old brings all beautiful things in life without worrying about the cost.we also know that without proper planning  retirement  will be drudgery & our mission is to help our investors to get them out of it as much as possible.


Features of our Unique Retirement Planning Proprietary method

1)Precise retirement expenses calculator with 3-step process for accurate
   Future living cost forecasting method with in built cost of  inflation markup
both during pre retirement & post retirement phase.

2)All weather portfolio”comprises of EQUITY,DEBT GOLD & CASH to ensure maximum diversification among asset classes.

3)Proprietary “staircase age wise asset allocation “model for retirement ensures
equity returns are arrested during initial accumulation phase & volatility is smoothened out by gradually reduced exposure as retirement age approaches.

4)There is fixed percentage of all asset clases during every age & system MONITORS it rigorously & generates messages at every fixed interval if there is deviation from the marked asset allocation.This feature enables us to do all investing automatically & no emotional bias is there which is big problem with retail investors who majority of times get it wrong otherwise. 


5)Very high quality DIVERSIFIED EQUITY SCHEMES all from different fund houses with large cap bias & quality midcaps with consistent track record ,minimum overlapping of stocks, higher dividend yield lower risk (very important parameter ) lower volatility & lower fund management charges make it to the list of five schemes that form part of equity portion.


There is full fledged & extremely methodical research on several parameters from independent authority  that goes into selection & recommendation of equity schemes which forms basis for investment aimed at retirement planning.No possibility of any sector fund or thematic fund or high beta fund or any small cap fund making entry into scheme of list for retirement investing.

6) In similar fashion we apply similar kind of research on debt side of investments where we select only Government securities & companies offering bonds  with  AAA ratings & P1quality of papers for investments .As we don’t believe in taking interest rate call  we have intelligent mix all duration papers which includes short term ,medium term & long term bonds (each forming not more than 25% of total debt portfolio & all are managed by capable debt fund managers from different AMC’s).There is some investment in cash & money market instruments also for liquidity reasons.This not only helps us ride the yield curve dynamically but get diversified among debt instruments also.




7)we have Gold allocation also not more than 10% of total  portfolio.This is done for three main  reasons a)to give traditional hedge against inflation & b) to protect portfolio from currency depreciation& c) gold has negative correlation with debt & equity so a good diversification tool.we shall be investing in gold ETF not in physical gold & IT WILL BE ESSENTIALLY A PART OF DEBT PORTFOLIO.

8)RETIREMENT TRACKER- unique tracker tracks present valuation vis a vis targeted retirement corpus on monthly basis & keeps client updated by sending sms & email about the deficit or surplus which helps maintain investors retirement on track.This is shown by graph which is drawn between months & fund size axis.


9)No dependency on any Company ,financial advisor, no number crunching ,no call on economy or for that reason on any advise related with financial market will be there as “ALL WEATHER PORTFOLIOis quiet resilient & active enough to take to the targeted retirement corpus safely if given sufficient time & investments as indicated .

10) Yearly  Portfolio Re-balancing :we do this judiciously following our unique staircase. Age wise asset allocation & sends message to our customers through sms & email .There are three portfolios in this CONSERVATIVE, MODERATE, & AGGRESSIVE.


If consolidated value of equity funds is more than desired we will sell proportionate amount of units of schemes which has given maximum returns & shift the redeemed money into debt funds to maintain the balance & vice versa if debt valuations have increased than desired levels.we do this yearly so that all gains are arrested & no STCG is there in case of equities.As debt switching will be much less than what we think will be for equities &only minor percentage will be withdrawn for switching it’s effect of taxation will be almost nill.

11) ”Dynamic Withdrawal strategy” ensures that all withdrawals esp during post retirement are those Withdrawal which have nil tax liability.This is very important advantage as all product which are sold as pension product are taxable,only ppf is not taxable otherwise bank FD’s ,NSC,KVP,SENIOR CITIZEN SCHEME,National Pension Scheme (NPS),UNIT LINKED PENSION PLAN(ULPP),LIC JEEVAN AKSHAY retirement plan ,ANNUITIES all are taxable as per present laws.Thus we offer very significant as well as great relief in taxation to our investors.



12)Inflation is calculated realistically for both phases i.e. pre retirement corpus & tax free* cashflows during post retirement .(*taxfree status as per present legislation, no guarantee of future tax laws).Lot of investments which are made today doesn’t take future inflation in mind & may leave customers no where in meeting those expenses.


for example we even calculate say withdrawl of 50,000/- first month  post retirement & increasing upto 1,88,000/- after twenty years per month due to inflation & corpus big enough to adjust that all inflation adjusted withdrawals  for  twenty years .lot many retirement planners skips this & simply plan for fixed withdrawal every month which is very risky.

13)There is no bias for any company or any scheme in our selection process,only those schemes which qualifies our research makes it to the grade of investment.

Out of approx. 800 different equity & debt based schemes from different AMC’S & only 10 out of them are selected for long term investment like retirement planning ,It requires highly technical skills, years of experience & expertise to do that. Right selection of mutual fund scheme is not every body’s cup of tea including  many of those in business of selling of mutual funds.
14) We follow fundamental approach of value investing as followed by all time greats like Sir John Templeton, Benjamin Graham or Warren Buffet for even selection of mutual fund schemes which strictly believes in buying value at fair price, avoiding risky bets ,& long term wealth creation rather than short term gains.


we don’t chase returns by investing in small & low quality midcaps stock based equity schemes (rightly so as this is retirement fund so risk is to be as little as possible), we don’t take any  calls on short term performance  & we simply don’t deviate from our set of procedures of  prefixed age wise asset allocation & yearly portfolio re-balancing.

15)JAW DROPPING PERFORMANCE OF OUR PORTFOLIO IN BACKTESTING :

 while doing back testing of our retirement model portfolio from oct-1999 till oct-2014 ,say for person aged 45 years aiming for retirement corpus of 50 lacs in 2014 ,doing investment of  Rs.10,000/- per month in AGGRESSIVE portfolio,not only achieves that but achieves 82 lacs more,(132 lacs against 50 lacs), inspite of three major falls during the term in which in 2008 there was almost 50% fall in equity NAV’S  but this portfolio value fell by just  20% & also it was never in red during any time during the whole term.


The overall performance of our retirement portfolio was around 19.57%CAGR  whereas sensex return during the same time  was approx. 13 %CAGR (-4444 to PRESENT LEVEL OF  28000)& nifty return was also 12.35%CAGR (1480 TO  OCT LEVEL OF 8500).The important thing is that barring first few years where equity exposure was just above 50% ,majority of times equity holding was below 50% during the term & even reached just 20% in last two years & still managed to outperform the broad indices.


This was possible because of unique stair case asset allocation & portfolio re-balancing every year according to STANDARDS(there were 14 rebalancing done in fifteen years four from equity to debt & ten from equity to debt which resulted in splendid performance). This is quiet big achievement to generate such  superior returns without getting involved even a bit into financial markets & avoiding all major  volatility or losses.

16)It is an ideal retirement  vehicle for small & retail investors who are looking for better returns than traditional instruments like Bank FD’s ,PPF or any traditional pension plan but without the volatility of equities, also they get best treatment of their investments just like high networth individuals.All customers are treated equally in our scheme of things ,no separate treatment for any individual.

17) So one can assume safely that all vital parameters of proper retirement planning like three step retirement calculator, neutral selection of  high quality schemes, diversification of asset classes ,no emotional biases ,no call on sector or economy ,age wise asset allocation, yearly portfolio re-balancing, research based evaluation of both equity & debt schemes , inflation calculations,sms & email based retirement  tracker, complete transparency on every day basis on all investments & everything  online ,no dependency on individual company or advisor servicing ,very high grade proper risk management system esp. during bad days, absolutely dirt cheap servicing charges for whole year which are pathetically low, as low as just 2.73/-per day ,& very importantly tax free withdrawls during post retirement phase  makes it indispensible tool for retirement investing.
We have not found any scheme offered by any insurance company or any mutual funds offering so much value for normal or retail investors &  scoring so high on all key parameters as is offered by us. 

SO COME JOIN US FOR CUP OF TEA OF WONDERFUL RETIREMENT,IT IS HOT ,EMANATING FROM WONDERFUL KETTLE SIMMERED CONTINUOUSLY WITH FRESH AROMA & EVERY SIP IS  GOING TO BE SHEER DELIGHT.

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