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 PORTFOLIO” is 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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