Why Financial Planning?

Planning is bringing the future into the present so that you can do something about it NOW.

Retirement Planning is one of the biggest components of Financial Planning – it’s the only common goal that everyone shares be it rich, poor, salaried, or businessman – Resident Indian or NRI. This Video Post will work like Retirement Planning Guide to both young & retired people.

I was writing for various newspapers on regular basis but getting a call from a TV show was remarkable. There is a big difference between print & electronic media. Writing for the Newspaper is like practicing shooting for the Olympics & suddenly someone offers you that since you are a good shooter so why don’t you help our security forces on the border.

Check – Financial Planning Complexities for NRIs

Hemant Beniwal Doordarshan
In 2010 I was invited to Mumbai for “Money Plant Show” an MCX- SX & Doordarshan nationwide drive for Financial literacy & the episode was “Financial Planning: Retirement”. I was a bit nervous as they shared the list of participants who participated in earlier episodes.

Dignitaries participated in earlier episodes included Mr. G. N. Bajpai, Former Chairman, SEBI; Mr. M. R. Mayya Former Executive Directors, BSE, Mr. A. P, Kurian, Chairman, AMFI, Mr. Shailesh Haribhakti, Chairman, BDO India, Mr. Vivek Kanwar, Managing Director, Aditya Birla Money etc.

My condition was the same as above mentioned shooter, as here anchor was constantly firing questions. Adding to the nervousness I even had Eye Flu on that day, it was really painful sitting there but everything went very well & the episode was recorded without any cut or retake. This was telecast on 16th October 2010 on DD1 (Doordarshan National )

I have tried to make a little transcript around the videos (actually these are not answers but few points that are covered in the answer) so that you can understand about retirement & Financial Planning (I think they have covered all possible questions). So let’s begin. Videos are in Hindi.

StepsHow NRIs can plan for their Retirement in India

You may ask – are these videos still relevant?

Basic principles of investment and planning never change

Anchor is Mr Shailesh Pethe 

First Video – On Youtube

1. Hemant – What factors have made retirement a challenge ?

  • Lack of financial planning (must listen to this – when we talk about finance it’s not only investments)
  • Low pension or no pension income
  • Shift from typical joint family structure
  • Rise in medical expenses

2. Why is financial planning necessary for retired citizens?

  • Rationale
  • Significance

3. What are the benefits of financial planning for old age people?

  • Availability of funds at right time
  • Financing immediate and special needs (including medical)
  • Financing future goals
  • Financial independence

4. Hemant – Who can plan for retirement and what are the benefits?

  • Young Investors (It’s really important for young people to start early)
  • Mid age investors
  • Retired citizens

5. How can retired investors define their investment objective? what should they keep in mind while setting their goals?

  • Goals & investment objective
  • How to design

Second Video  on Retirement Planning Videos – On Youtube

6. Why is safety important while investing for retired citizens?

  • Equity & real estate are volatile
  • Safety Vs inflation Hedge

7. Hemant – What are the various investment avenues available in the market which would suit the investor’s objective?

  • There are not many products available after retirement but for accumulation we have lot of products
  • Don’t Mix Insurance & Investment products – Insurance plans for investment purpose are very expensive & lack transparency

8. What investment style should old age citizens adopt to achieve their investment objective?

  • Should be conservative to moderate.

9. What factors should be kept in mind while allocating funds?

  • Risk tolerance of investor
  • Depends on your status
  • Products like MIP

10. Hemant – Whom can they approach in case of investment advice?

Oh! He asked me this – even I asked this question to myself when I started my Financial Planning Firm. So answer was already in my mind. People really liked my answer so I thought of writing an article on the same.

I wrote “How to choose your Financial Advisor” & this got published in leading Hindi Business daily “Business Bhaskar” on 13th Nov. 2010

Check –Best Pension Plans for NRI’s in India

How one can find a proper Financial Advisor?

Let me share few points which will help you to find financial advisor. List can be long … but let me keep it simple & stick to top 3 points, which merit attention.

  • He should give Comprehensive Advice
  • His advice should be Independent – His ethics should guide him rather than his boss, company & commissions.
  • He should be Competent – Have you ever tried to find out that what is the education, knowledge & experience of the advisor who is guiding you?

Finding a good advisor is time consuming but this will decide your financial success.

11. How can retired investors reduce their tax payment on total and investment income? Do they get any special tax treatment?

  • Tax slab
  • Dividend Income is tax free
  • Systematic Withdrawal

Third Video – On Youtube

12. What other benefits are they entitled to as a senior citizen on India?

  • Medical Insurance 80D
  • FD (Fixed Deposit)

13. Hemant – How can old age individuals achieve their goals?

  • Meeting medical expenditure
  • Financial marriage ceremony of children (don’t be emotional)
  • Financial Family vacation (conservative vacations)

14. Can retired citizens avail loans

  • Not Advisable
  • Reverse Mortgage

15. Hemant – What precautions should retired investors take while planning their finances?

  • Accept lifestyle changes
  • Don’t spend lavishly
  • Equity experience
  • Regular Income Vs Growth
  • Medical Emergency

16. Hemant – It is heard often that many agents take undue advantage (Mis – selling) of old age citizens to earn high commission and in the process these investors end up losing out their hard earned savings. How can investor’s safe guard themselves to avoid financial losses?

  • There is rampant misspelling in the financial sector
  • Lack of Financial Literacy – this is the only reason I started The Financial Literates
  • How financial planning can help in this
  • Even regulators are talking this very seriously

I don’t know how I spoke or how were the expressions – I leave that for your comments but I really spoke my heart out.

If you have any questions, concerns regarding Retirement Planning please feel free to ask.

Published on February 11, 2018

Hemant Beniwal

Hemant Beniwal is a CERTIFIED FINANCIAL PLANNER and his Company Ark Primary Advisors Pvt Ltd is registered as an Investment Adviser with SEBI. Hemant is also a member of the Financial Planning Association, U.S.A and registered as a life planner with Kinder Institute of Life Planning, U.S.A. He started his Financial Planning Practice in 2009 & is among the first generation of financial planners in India. He also authored Bestseller book "Financial Life Planning". 

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