• Home
  • About
  • Services
  • Blog
  • Contact
  • Client Login
No Result
View All Result
VBS Investments
No Result
View All Result

Post Retirement Investment options and how to safeguard our life savings?

vbsgroup by vbsgroup
February 1, 2021
in investment, Strategy, Uncategorized
0
0
SHARES
165
VIEWS
Share on FacebookShare on Twitter

Lifestyle, priorities, responsibilities and financial changes are very significant for anyone post retirement and have to be dealt in the best possible way.

Related Posts

Factors to consider while buying a house and leveraging our finances

Relation between timeline and risk capacity in financial planning

The importance and role of financial planning for wealth building

Changes for Crypto currency landscape in India and their suitability to investors.

The financial needs that most of us have post retirement are generating decent income at regular intervals as well as good capital appreciation. Our major understanding regarding the financial needs is to manage the retirement fund actively with a hybrid solution (income generation and capital appreciation).

The key aspects of any retirement fund should be a healthy income stream without taking the risk of capital erosion and to beat inflation so that the actual portfolio size does not get eaten up by it.

Let us look at the available options for deploying any retirement fund and see their pros and cons. Like any other evaluation, we will be looking at a few metrics or aspects of investments to evaluate and compare them with each other. The aspects I prefer to look at are: Return Potential, Practical Risk, Inflation shield, Liquidity, Flexibility (to change investments), Transparency.

The available practical investment options that have income streams as well as capital appreciation potential are:

  1. Real Estate (residential or commercial)
    • The rental yields have been very low in India with an imbalance between growing rate of landlords against growing rate of tenants which makes it less attractive income wise but that can be compensated with it being one of the high performing assets in non-ultra-metropolitan markets in India.
    • Real Estate has high return potential and is a natural inflation shield but has very low and near to zero liquidity, flexibility and comes with a lot of practical risk like maintenance, market risk which is not so preferable in a post-retirement life.
  2. Insurance (Linked and Non-Linked)
    • These are the least preferred investment options by us as they are high cost (huge commissions), have limited return potential (sometimes due to high costs). Any insurance’s main purpose should technically be protection rather than an investment.
    • Insurance has neither great investment potential nor liquidity or transparency. It might beat inflation but is not guaranteed always due to the high cost / underlying investment structure. The lack of liquidity has impacted many investors in a very negative way.
  3. Fixed / Recurring / Bank / Government Deposits
    • These investments have the least possible near zero capital risk. Any bank FD has a five-lakh insurance cover and government deposits like Sukhanya samriddhi or National Savings certificates have a strong backing from the government.
    • They have a very weak inflation shield as they have fixed returns with no potential of increasing it. In many of the government deposits, liquidity is low and the flexibility is almost none as everything is fixed.
  4. Gold
    • Gold has been a good investment and a wealth storage option for all our families and lives. As an investment, gold has always been a good bet but does not spin off any income (cash flow will come only if part of investment is sold which makes us tax liable sometimes).
    • Gold has high liquidity, return potential and is a natural inflation shield but has very low flexibility and does not spin off any regular income.
  5. Annuities (LIC Jeevan Shanti)
    • Annuity is where we give a lumpsum  amount of money to an insurance company and they give us income for the rest of our life or for a fixed period or the rest of the last surviving joint holder depending upon the plan we choose.
    • Though annuities guarantee an income stream as long as the holder/holders are alive, the return potential is fixed and does not protect us against inflation which makes it very less appealing as a long-term investment without liquidity.
  6. Hybrid Mutual Funds (Dynamic Asset Allocation)
    • Dynamic asset allocation in simple words means the mutual fund manager gets to allocate money between low risk (Safe Debt / Bonds) and high-risk investments (Equity) based on market conditions but never based on the investor’s requirements. Some mutual fund schemes under this category have a dividend option but are not obligated to payout dividend.
    • The major issue with these funds is that the asset allocation is dynamic and is not determined keeping the investor in mind but solely based on the market. Hybrid access to capital markets usually can give us an income stream without losing return potential while acting as a natural investment shield.
  7. Mutual Funds (Actively Managed)
    • There are a wide range of mutual funds categorized in dozens of ways. This drives flexibility in managing our investments to choose how much income we want or risk we want or return potential we want to capture based on our requirements rather than completely based on the markets.
    • You have been familiar with our active asset allocation management based on our PPP strategy and the major advantages here would be that we can generate an income stream as required, can protect the portfolio from inflation, be very flexible and liquid in investment options, be totally transparent about our decision making process and the underlying investments in your portfolio.

Looking for a Certified Investment advisor in Hyderabad? We are a SEBI Certified investment advisory company, get in touch with us over here.

Related Posts

investment

Factors to consider while buying a house and leveraging our finances

by vbsgroup
May 20, 2022
0

Buying a "Dream Home" has become one of those life goals that almost everyone has on their to-do list. Whether...

Read more

Relation between timeline and risk capacity in financial planning

May 20, 2022

The importance and role of financial planning for wealth building

May 20, 2022

Changes for Crypto currency landscape in India and their suitability to investors.

February 7, 2022

VBS Investments thoughts on the economy for Quarter ending in September 2021

October 8, 2021

Best Money Investing Techniques| How to Earn Money Without Investments?

August 9, 2021
Next Post

A Letter to our Stakeholders for the Q3 FY 2021

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recent Posts

Factors to consider while buying a house and leveraging our finances

May 20, 2022

Relation between timeline and risk capacity in financial planning

May 20, 2022

The importance and role of financial planning for wealth building

May 20, 2022

We provide 360° solutions for planning & building your wealth to achieve your financial goals. Feel free to contact us with any questions

Registered Investment Advisor with SEBI INA200012683

Our Locations

Malakpet
Koti
Kondapur

Services

Financial Advisor
Investment Advisor
Insurance Advisory
Tax Planning

Please click here to register complaints on any SEBI registered intermediary

Call Now

© 2020 VBS Investments | All rights Reserved.

We provide 360° solutions for planning & building your wealth to achieve your financial goals. Feel free to contact us with any questions

Registered Investment Advisor with SEBI INA200012683

Our Location

16-2-705/1/12/A/C, Professors Colony, Malakpet, Hyderabad, Telangana – 500036

Please click here to register complaints on any SEBI registered intermediary

© 2020 VBS Investments | All rights Reserved.

No Result
View All Result
  • Home
  • About
  • Services
  • Blog
  • Contact
  • Client Login

© 2020 VBS Investments | All rights Reserved.

Log In ×
Forgot your Password?
Login With OTP
Resend OTP(00:30)
Don't have an account?
Signup
Resend OTP(00:30)
Back to login
Resend OTP (00:30)
Back to login
  • (+93) Afghanistan
  • (+355) Albania
  • (+213) Algeria
  • (+1) American Samoa
  • (+376) Andorra
  • (+244) Angola
  • (+1) Anguilla
  • (+1) Antigua
  • (+54) Argentina
  • (+374) Armenia
  • (+297) Aruba
  • (+61) Australia
  • (+43) Austria
  • (+994) Azerbaijan
  • (+973) Bahrain
  • (+880) Bangladesh
  • (+1) Barbados
  • (+375) Belarus
  • (+32) Belgium
  • (+501) Belize
  • (+229) Benin
  • (+1) Bermuda
  • (+975) Bhutan
  • (+591) Bolivia
  • (+599) Bonaire, Sint Eustatius and Saba
  • (+387) Bosnia and Herzegovina
  • (+267) Botswana
  • (+55) Brazil
  • (+246) British Indian Ocean Territory
  • (+1) British Virgin Islands
  • (+673) Brunei
  • (+359) Bulgaria
  • (+226) Burkina Faso
  • (+257) Burundi
  • (+855) Cambodia
  • (+237) Cameroon
  • (+1) Canada
  • (+238) Cape Verde
  • (+1) Cayman Islands
  • (+236) Central African Republic
  • (+235) Chad
  • (+56) Chile
  • (+86) China
  • (+57) Colombia
  • (+269) Comoros
  • (+682) Cook Islands
  • (+225) Côte d'Ivoire
  • (+506) Costa Rica
  • (+385) Croatia
  • (+53) Cuba
  • (+599) Curaçao
  • (+357) Cyprus
  • (+420) Czech Republic
  • (+243) Democratic Republic of the Congo
  • (+45) Denmark
  • (+253) Djibouti
  • (+1) Dominica
  • (+1) Dominican Republic
  • (+593) Ecuador
  • (+20) Egypt
  • (+503) El Salvador
  • (+240) Equatorial Guinea
  • (+291) Eritrea
  • (+372) Estonia
  • (+251) Ethiopia
  • (+500) Falkland Islands
  • (+298) Faroe Islands
  • (+691) Federated States of Micronesia
  • (+679) Fiji
  • (+358) Finland
  • (+33) France
  • (+594) French Guiana
  • (+689) French Polynesia
  • (+241) Gabon
  • (+995) Georgia
  • (+49) Germany
  • (+233) Ghana
  • (+350) Gibraltar
  • (+30) Greece
  • (+299) Greenland
  • (+1) Grenada
  • (+590) Guadeloupe
  • (+1) Guam
  • (+502) Guatemala
  • (+44) Guernsey
  • (+224) Guinea
  • (+245) Guinea-Bissau
  • (+592) Guyana
  • (+509) Haiti
  • (+504) Honduras
  • (+852) Hong Kong
  • (+36) Hungary
  • (+354) Iceland
  • (+91) India
  • (+62) Indonesia
  • (+98) Iran
  • (+964) Iraq
  • (+353) Ireland
  • (+44) Isle Of Man
  • (+972) Israel
  • (+39) Italy
  • (+1) Jamaica
  • (+81) Japan
  • (+44) Jersey
  • (+962) Jordan
  • (+7) Kazakhstan
  • (+254) Kenya
  • (+686) Kiribati
  • (+965) Kuwait
  • (+996) Kyrgyzstan
  • (+856) Laos
  • (+371) Latvia
  • (+961) Lebanon
  • (+266) Lesotho
  • (+231) Liberia
  • (+218) Libya
  • (+423) Liechtenstein
  • (+370) Lithuania
  • (+352) Luxembourg
  • (+853) Macau
  • (+389) Macedonia
  • (+261) Madagascar
  • (+265) Malawi
  • (+60) Malaysia
  • (+960) Maldives
  • (+223) Mali
  • (+356) Malta
  • (+692) Marshall Islands
  • (+596) Martinique
  • (+222) Mauritania
  • (+230) Mauritius
  • (+262) Mayotte
  • (+52) Mexico
  • (+373) Moldova
  • (+377) Monaco
  • (+976) Mongolia
  • (+382) Montenegro
  • (+1) Montserrat
  • (+212) Morocco
  • (+258) Mozambique
  • (+95) Myanmar
  • (+264) Namibia
  • (+674) Nauru
  • (+977) Nepal
  • (+31) Netherlands
  • (+687) New Caledonia
  • (+64) New Zealand
  • (+505) Nicaragua
  • (+227) Niger
  • (+234) Nigeria
  • (+683) Niue
  • (+672) Norfolk Island
  • (+850) North Korea
  • (+1) Northern Mariana Islands
  • (+47) Norway
  • (+968) Oman
  • (+92) Pakistan
  • (+680) Palau
  • (+970) Palestine
  • (+507) Panama
  • (+675) Papua New Guinea
  • (+595) Paraguay
  • (+51) Peru
  • (+63) Philippines
  • (+48) Poland
  • (+351) Portugal
  • (+1) Puerto Rico
  • (+974) Qatar
  • (+242) Republic of the Congo
  • (+40) Romania
  • (+262) Runion
  • (+7) Russia
  • (+250) Rwanda
  • (+290) Saint Helena
  • (+1) Saint Kitts and Nevis
  • (+508) Saint Pierre and Miquelon
  • (+1) Saint Vincent and the Grenadines
  • (+685) Samoa
  • (+378) San Marino
  • (+239) Sao Tome and Principe
  • (+966) Saudi Arabia
  • (+221) Senegal
  • (+381) Serbia
  • (+248) Seychelles
  • (+232) Sierra Leone
  • (+65) Singapore
  • (+1) Sint Maarten
  • (+421) Slovakia
  • (+386) Slovenia
  • (+677) Solomon Islands
  • (+252) Somalia
  • (+27) South Africa
  • (+82) South Korea
  • (+211) South Sudan
  • (+34) Spain
  • (+94) Sri Lanka
  • (+1) St. Lucia
  • (+249) Sudan
  • (+597) Suriname
  • (+268) Swaziland
  • (+46) Sweden
  • (+41) Switzerland
  • (+963) Syria
  • (+886) Taiwan
  • (+992) Tajikistan
  • (+255) Tanzania
  • (+66) Thailand
  • (+1) The Bahamas
  • (+220) The Gambia
  • (+670) Timor-Leste
  • (+228) Togo
  • (+690) Tokelau
  • (+676) Tonga
  • (+1) Trinidad and Tobago
  • (+216) Tunisia
  • (+90) Turkey
  • (+993) Turkmenistan
  • (+1) Turks and Caicos Islands
  • (+688) Tuvalu
  • (+1) U.S. Virgin Islands
  • (+256) Uganda
  • (+380) Ukraine
  • (+971) United Arab Emirates
  • (+44) United Kingdom
  • (+1) United States
  • (+598) Uruguay
  • (+998) Uzbekistan
  • (+678) Vanuatu
  • (+58) Venezuela
  • (+84) Vietnam
  • (+681) Wallis and Futuna
  • (+212) Western Sahara
  • (+967) Yemen
  • (+260) Zambia
  • (+263) Zimbabwe
Registered Investment Advisor with SEBI INA200012683