dear viewers welcome to yet another episode of your life your money in this video I'm going to talk to you about the slippery side of retired life this video is for two age groups age group 45 to 60 and for people who are already retired 45 to 60 please make note what happens when you retired the chronology of events how it will unfold people who are already retired please note what might happen going forward for both these age groups this is an educative video stay till the end of the video and see how the retired
life ends up as a slippery road if you're not well prepared for it this is NRI money clinic for you and I'm Dr Chandra khb your financial guide for a happy [Music] living NRI money Clinic no hype just the right advice retired life is known as the golden years of life where you have retired from work you don't need to work for an active income it's time that you have earned this life and you are still youthful up to 75 years of age you need to be enjoying this without worrying about getting up early in
the morning going for your work and thinking about all the things that are required in your life but over 95% of the people retired life will never turn out to be the golden years of life it is a period of repentance guilt missed opportunities and a failure that set sin because of a failure to plan your retired life very very well this video is a chronology of events that will follow when you retire in life let's look at it a little bit more in detail most people retire at the age 60 or around that age
let's classify first 5 years of your retired life this is the period of mistakes which will come in your life many mistakes will happen during this particular phase before retirement you are working every day and you had an active income once you retire you don't have an active income nor your time is getting consumed you will not sit quiet this is a time you want to be active you will travel you spend money you wanted to do a lot of things and in that process you tend to do a lot of mistakes misallocation of your
resources misallocation of asset allocation misallocation of resources for proper use many people carry liability into the retired life this will come and bite them during the first five years of the retired life people get a big chunk of money when they retire out of their gratuity Provident fund or end of service benefit and other forms they get a big chunk of money people do not know how to handle this big chunk of money they lend money to somebody else they park it in small Banks they go and buy a real estate which they don't need
they try and give this to their children without knowing what might happen going forward countless m mistakes happen in the lives of retirees during the first 5 years and they do not know these mistakes will come back and haunt them further in their life to avoid these kinds of a mistake the preparation should start much early earlier the better usually I'll tell people if you are above 40 years of age it is time that you sit with a retirement planner retirement is one place where you can't do things on your own it's not for do
it yourself because you don't have an experience of how your retired life will be how things will pan out what will happen you just don't have the experience of it you have to work with the retirement planners you should work with your financial planners they have the experience of studying the subject they have seen a lot of people going through the retirement mistakes how things will pan out and they have the experience probably the retirement planners themselves have worked under the seniors planners and they have got a experience of how to guide people for proper
retirement this is one area my sincere advice for each and everyone even if you are a do it yourself you should have a session with a retirement planner sit across and see what you have done is right or wrong most people confuse retirement planning is by building all that money that you need that is one aspect of it of course money is required of course a good amount of wealth has to be built before you retire but that's just one aspect of it there are multiple things which have to be factored in like how much
a fixed income what kind of an income strategy you should put in place how will the future unfold what is the the interest rate scenario what is the inflationary trajectory what stage of the economy we are in is just not the economic progress what's happening at the societal level all these things have to be factored in and proper things have to be put in place if you're a person who is between 40 to 60 years of age and looking for the services of a financial planner you can make best use of services provided by NRI
money Clinic we have guided thousands of people in more than 60 countries and we have built a safe secure retired life for countless people how can you reach out to us if you have an intention very simple our number is given here in the description box below we have also provided a link there by clicking on the link it will take you to the WhatsApp and send us an exploratory message and our team of experts are ever ready to guide you to build the proper approach towards retirement planning why delay send that message now dear
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miss one single video when you press that Bell icon you will be notified whenever I release that video why delay press that subscribe button now retired Life 5 years later 65 now this is the time the erosion starts the erosion of purchase power India used to have a high rate of inflation today inflation has come down inflation has come down in many parts of the world in US it used to be nil today yes there is a raging inflation issue in the US and the developed world but nevertheless at some point of time let's assume
that the inflation cools down even then if the inflation is 2% 3% 4% % whatever could be that number make no mistake inflation bites by 65 years of age unless you have designed your strategies very well erosion bites for you the prices rise most people what do they do they go and keep the money in the bank they start living on the interest income or they leave on the pension income which is another segment of fixed income without mistake I can say most people depend on this fixed income in during their retired life for their
cash needs fixed income will remain fixed it will not change if you're getting 50,000 Rupees as an income from all your fixed income sources it could be government scheme it could be Provident fund it could be your bank fds it could be from your pension it remains static right it will not rise the income remains static but your expenses rise you may find it difficult to comprehend today the simple way to understand this is just imagine what if your salary were to be same as what it was 5 years before or 10 years before how
would you leave today go back 5 years and 10 years to see how inflation bites you the same story happens what has changed today is five and 10 years before you had a job and you are getting raised you are getting a dearness allowance today you don't have a job you have an income which is fixed income in nature and that is not raising because of which the amount of goods and services that you buy from the same fixed income starts coming down you suddenly see in 5 years after your retirement I cannot afford all
the goods and services what I used to afford with the same amount of money after 5 years and realization Dawns on you you will not even realize quickly you will say why why I'm not able to meet then you start complaining about the price rise about the government about the policies and all these things the reality is that you have not prepared yourself well for retired life that is why the erosion comes and bites you very bad remember this is not the only thing which bites you after 5 years between 5 to 10 years after
retirement that is between 65 to 70 years there is more shocking news which will come the shocking news is the reinvestment risk the deadly reinvestment risk comes and starts biting you very very badly people cannot understand reinvestment risk reinvestment is real reinvestment risk is dangerous and people do not take this is too seriously what is reinvestment risk reinvestment risk is you have parked all your retirement Corpus in the bank let's imagine at today's FD rate of 7% you have locked this fds depending on when you book these fds they start maturing in 5 6 7
maximum by 10 years 10 years is the maximum period where the fds can be booked they come for renewal when the renewal comes what happens the interest rates would have fallen most likely in all probabilities the interest rates of f future will be less than interest rate of today now you have seen between 60 to 65 your fixed income has remained constant the prices have gone up as a result of which there is an erosion of purchase power what I said now imagine the fixed income itself coming down if you're getting 50,000 interest because of
this reinvestment risk let's say if the interest rate comes down by 2 percentage Point instead of getting 50,000 let's say you start getting 40,000 rupees as the income for you to leave on now you have double problem problem of erosion because of inflation then your actual income from fixed income itself comes down and this happens between 65 to 70 for those people great fans of mutual funds I will tell you do not take s swp of mutual funds too seriously do not depend on S swp completely if you have to depend on s swp proper
process has to be put into the place you have to draw lesser than what mutual funds give you do not make your calculation thinking that the mutual funds will give you 12% 14% And I can draw 10% every year for my income that is asking for a very idealistic situations markets will not behave like that all the time the stock markets will go through upwards during the Bull Run they will remain static they will come down if you depend on S swps and that to if you start withdrawing all the profits that are there in
your mutual fund make no mistake when the tide turns when the markets become Static when the market comes down you will be eroding your Capital the net outcome is your income will come down between 65 to 70 years of age these are the shocking things that will happen in your life you must know it you must write down you must be prepared for it and you should put proper strategies not to get victimized because of these events which will pan out in your life that is where I say you must work with the retirement planner
it's just not one engagement uh with the retir planner see the future is uncertain future will unfold in different possible ways you should constantly work with a retirement planner have annual sessions with them and check what's happening to your finances your expenses how things are it should be an ongoing process and you should work with very experienced ethical practitioners to guide you during your retired life if not make no mistake what should have been your golden years will never remain as your golden years 10 to 15 years post retirement age 70 to 75 by 70
years of age you are much more weaker physically naturally you are weak mentally you are weak psychologically your faculties both mental and physical faculties as a aging process will slow down you could be an intelligent man you could be a CEO of a company you could be a very intelligent person in a cushy position whatever it could be but this is the rule of nature you will slow down and you do not know what kind of age related issues will come in your case will you remember everything will you slow down mentally can you be
a victim of alzer dementia and the age-old diseases which might come by 70 what happens is that you are alone people don't take you seriously your importance in life comes down you could have been giving instructions when you are working in office post retirement for First 5 years people may still respect you beyond 65 years normally people uh you can't say that I am such and such an officer I am such and such a position I'm a rich man poor man doesn't matter people don't take you seriously that is the reality of Life your children
could be living in some part of the world it's natural that they can't come and leave with you that's a reality one will go through so it's a period of emptiness blank you will be slowing down mentally physically if you keep your finances intact at least you can leave respectfully if you have invested well in your health you can maintain your health to the extent possible you can prolong your life and live a good good life for a reasonably good period of time most of the things to lead a good life between 60 to 75
years of your age is under your control but requires proper preparation it can't be done when you reach 70 that is why I said this video is for age group 40 45 up to 60 years of age you should make it happen you should invest in health you should invest your money wise way is just not creating a big chunk of money you are in a wealth distribution phase equally true is you are also in a wealth preservation phase a wealth preservation phase is where your money should be safe Capital wise I should not lose
my Capital when I say I should not lose Capital it's just not the absolute amount of money that I should not lose it's also about not losing money because of inflationary pressures and that calls for Extraordinary planning it requires immense efforts both from your side as well as from your planner side to foresee things that will come and design things for you so only when you are able to do you can have a good life between 60 to 75 so this video is just to tell you how life will unfold I've seen the lives of
thousands of people I'm in practicing lines for decades together I've built life for a lot of people by proper planning I've seen the lives of so many people who have not given attention to any of these details they come to me very late telling that such and such a things have happened but by the time it is beyond repair unless the state or their family members help them it is probably impossible for anyone to to satate their financial life age 75 and Beyond this is a period of perade a perade to exit the world who
lose first who use next no one knows but it's absolutely certain a day will come for everyone to leave this world people who can't afford are the first one to live it is the men folk who live first women folk live later if you can afford if you have invested well in your health you can lead life longer if you have sufficient enough finances you have health insurance you have access to good Medical Care the probability of you living longer is real but nevertheless age Beyond 75 is a period of loners some people lose their
spouse first and they leave next or it could be the other way it's obvious that your most trusted friends classmates acquaintances neighbors people of your age your EXC colleagues one after another start living this world and there is lesser number of people who become important in your life life beyond 75 is a period of loners this is a time where you can't spend a great deal of money you can't move around that much you need help of people people may call you because of a senior citizen to be the chief guest or to Grace a
function that's all things will happen but you will not be spending a lot of money there but this is a period where people will start exiting my only suggestion to everyone is leave life in such a way that when the call of the almighty come you should be prepared to say I have lived a good life I was already long back it's you who called me late and leave with a smiling face leave a life that way and you will have a satisfied life dear viewers hope the video I have done today helped you to
understand how the life beyond 60 unfolds for retirees and it's time to take stock of the situation and prepare for your retired life if it did help you to understand how should your preparation be do not forget to give me a thumbs up thank you very much for watching this episode on N man Clinic I shall be back with you with yet another episode of your life your money next Friday till then stay safe Jin press the Bell icon for more details and subscribe our Channel [Music]
