Stress Test Your Retirement Plan

While planning for retirement, we encounter several rates: rate of return before  and after retirement rate of inflation before and after retirement While calculating the corpus required and the monthly investment required, we assume these rates are constant for each year before retirement and during retirement. In reality, all these rates can vary quite a…

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Illustration: Generating inflation-protected post-retirement income

Given a lump sum, how does one generate an income from it? How do we tackle inflation in retirement? Not too long ago, I was under the impression that such questions are asked only by senior citizens.  I soon realized the problem is extremely common. Many children are trying to optimize income from their parents retirement…

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Excel inflation-indexed annuity calculators to plan your retirement

Retirement planning is the single most important financial goal common to every individual.  It is the only financial goal in which a corpus would get spent over the course of decades! Retirement planning is simply non-negotiable.  The cost of postponing systematic retirement planning is more dangerous than inflation. Regular readers would be aware of that…

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Retirement Planning: letter to a prospective client

Nandish Desai and Manish Chauhan run Jagoadvisor – a portal for financial advisors. Recently, they posed the following retirement planning challenge, Scenario: ‘You meet a 55 year old with a corpus of Rs. 70 lakhs. The person seeks financial independence in retirement and expects an annual inflation of about 8-9%. He would like to invest the corpus in…

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