Who will be paying for your old age?

happy retirement

Shrivastava uncle is 72 and his wife, Manjula aunty is 68. They are my next door neighbours. Extremely sweet and affectionate, they love to talk. They have three kids – all married and employed. Uncle himself was a tax consultant till a few years back. As he grew older, his ability to work 8 hours a day and scout for new clients declined. His existing client base who was also largely retired did not need his services anymore. Aunty is a quintessential homemaker, devoted to the family ever since she was married to uncle. To me, they are a classic representation of the vast majority of our retired parental generation in India.

Last Sunday we met over tea and aunty made some delicious pakodas. As I noted down her recipe, uncle advised me to go slow on fried food. Two reasons – rising oil prices and rising healthcare costs. He said, the joy of fried food is “not worth it”.

Uncle and aunty had always lived a middle class lifestyle. Moderate income with significant monetary commitments towards their children. They wanted their children to get the best of education. But they had not fathomed the kind of money they would need to shell out just for schooling and tuitions, let apart the cost of higher education. So every child ended up taking a loan for pursuing their masters / post – graduation. They bought a home early in life and the EMIs continued till after their second child got married. And for all of his working 35 years, uncle’s sole intention was to save enough for getting his three kids married off in style. But with rising costs of the pomp and show of marriage, his fixed deposits were not enough. So he ended up withdrawing his PF and PPF – because it is so much more fulfilling to walk your chin up in the society than leading a comfortable retired life. So now, they have a handful of savings, minimal passive income and no monthly inflows. They definitely do not live the way they would have liked to.

I sometimes asked them why their children could not send him a monthly cheque so that they did not have to cut down on their lifestyle. They never really answered but I knew that like most parents of their generation, they always wanted to be a giver to their children. It was a matter of self – esteem to not depend on the ones you have raised. Sometimes, uncle used to say that his children need to save for their own retirement, not his. I have met his children – they are very nice people. They visit their parents often and want to help them. But they do not help because they cannot see their father feel dejected at the reality of having to depend on children.

This predicament is not unusual in our current social fabric. Some children don’t care about their parents. For those that do, the parents don’t want to be termed as dependents. It is an eternal sense of insecurity that lingers once the monthly inflow stops. The eventualities are something no one really plans for. Cost of living rises in ways we don’t visualize well in advance. We need to outsource daily chores more than we have ever had to and healthcare constitutes a big chunk of monthly expenses. Since there is so much more free time in a day, the desire to have a social life also increases. The costs of upkeep of that social life varies from household to household.

In India, we do focus on saving for our child’s marriage and may be also education. But retirement was and still is missing from the list of priority financial objectives. To our generation who has just started out on their long careers, retirement seems just too far off. And we hate to look that ahead in time. Some of my friends jokingly retort – who knows if we will be living till then. Well, the mortality rates have definitely gone up.

Some people believe that purchasing a house is all that they need for retirement. But what about the daily cash-flows? The salaries you need to pay to the domestic helpers, the driver and the newspaper man. The rising expenses on milk and flour. The medicines. The gifts that you want to give to your grand- children. We hardly plan for a life which is perhaps going to be so different from what we are currently living. And by the time we do, it is usually too late.

Let us therefore awaken and become more responsible, starting with ourselves. Next time, before you start planning for your child’s graduation expenditure, do set aside a sum for your happy retirement. It is alarmingly more important than you think it is.

About the author:

Shruti is a financial planning enthusiast and spends substantial amount of her free time in helping out her friends and relatives sorting out their finances. Currently working with Mahindra & Mahindra, she is one of our esteemed guest writers. She is an MBA from MDI Gurgaon and a CFA (CFA Institute, USA). 

About CAGRfunds:

We are a bunch of financial experts who help people manage and grow their wealth. We focus on making our clients financially independent by educating them and guiding them throughout their financial journey. If you think you need help with your money, reach out to us on +91 97693 56440.

Track Your Mutual Fund Investments Real Time

Till some time ago, every family had a relationship manager who would periodically come and meet our parents and discuss his mutual fund investments with him. And that was the only time our parents could get to know how their funds were doing. This is similar to those times when the only way to send money to someone was to visit a bank branch and deposit some cash/cheque.

With the onslaught of technology, everyone is seeking more convenience in everything that they do. So we don’t want to visit bank branches anymore and neither do we want to depend on our advisor to tell us how our money is doing. At CAGRfunds, we realized this urge for independence and therefore provided our clients with the convenience of tracking their investments on their own personal CAGR dashboard.

Once you register and start investing through the CAGR platform, you are assigned your own login details with which you get access to your own dashboard. Not only can you invest in mutual funds online but also track how your funds are performing.

But you do get a bunch of statements on your email, right? So what is there to track? Well, three reasons why our dashboard helps:

Comprehensive Data:

Some reports give you the value of how much your money has grown while others show you the list of transactions you have made. We give you everything relevant at one place. We show you how much you have invested, the current invested value, the absolute return and the annual return.Not only that, we show you the individual funds that you are invested in and what is the return you are making both at the fund and portfolio level. We also show you how your investments are split between asset classes and if it is in sync with your decided asset-allocation.

Simple Enough For Anyone To Get It:

The fine print and numbers overload on the statements you get on email makes it all the more complicated. Either you sift through all the information yourself or stay uninformed. We obviously don’t want that and hence our dashboard and reports are quite simple. Our clients told this to us! Don’t believe? Read here.

Any Time Visibility:

Reports generally come to you at the end of the month or when you transact. But with us, the next time you are discussing investments with your friend, just log in, check your current portfolio value and returns and have a more informed discussion!

We, therefore, ensure that you stay in complete control of your portfolio. So the next time you call us, it is only to discuss your portfolio, not to get data – because your dashboard gives you all the data you need!

If you have been facing trouble tracking your investments and want to switch to a truly delightful investing experience, do not hesitate to call / Whatsapp us on +91 97693 56440. You can also comment on this post or email us on contact@cagrfunds.com.

Our Investment Experts Cater To The Minutest Of Queries

This post is quite close to our hearts. Because in many ways, it defines who we are.

Let us talk about two recent examples.

Example 1

The other day, we met a 35-year-old salaried individual who had not started investing yet. He knew it was high time he should start deploying his surplus money to better use, but who has the time with a 12-hour job! While we were discussing his financial goals, he gave us a pile of 5 booklets (call them policies). And he smiled and said – “Can you please go through them and tell me what to do?”

And so we did. We not only analyzed the policies for him, we ended up giving him some useful advice, based on our expertise.

So, trust us when we say we go beyond our job description, to help clear those small doubts in your head, which you never ask or share with others!

Example 2

A month back, we met a 22-year-old female who wanted to start saving. It was a usual savings-discussion we were having when she mentioned, how she had no idea about what her tax liability would be that year.

This was of concern because she had just received her salary slip where tax had been deducted for the very first time. She asked if we could help her. And there we were, helping her calculate her tax.

The point we are trying to make is – we are always there for you.

We can never promise to do just everything for you, but if it is within our realm of possibility and knowledge, then we go all out to help you.

You must be thinking why on Earth do we do it? Well, we believe in getting married to our clients. We are not just a platform where you can begin investing or a set of people who will list out 3 funds to invest in.

We are a bunch of financial experts who treat our clients like family. And we do that in our style!

Did a financial query just pop up in your mind? Do not hesitate to call / Whatsapp us on +91 97693 56440. You can also comment on this post or email us on contact@cagrfunds.com

How CAGRfunds Makes Investing Simple For You

How CAGRfunds decodes the complexity of financial planning for you?

When we first started this business, we went out to talk to our friends about what they thought about investing and financial planning. May we say, we were surprised with the kind of responses we got?

While some of them knew bits and pieces of what financial planning means, most of them were upfront about why they never thought about it. Or rather, thought about it but kept on delaying any action. It was just too complex. That is when we decided to keep investing simple. Whether it was the concepts, the terminology, the planning or the transactions, we were absolutely sure that everything about financial planning needs to be simple.

So we started spending time with every such person we met. Our conversation never started from “How much do you want to invest?” We almost always just asked, “What do you do with your salary or earnings?” As we got answers to what people did with their earnings, we asked more questions, and then more answers. We think we are very good listeners. So that helps us to understand how best we can simplify your finances for you. And thus started the journey of decoding or let us say de-jargonizing the process of financial planning.

Likewise, we never get into terms like CAGR, ROI, risk profile, net worth etc. At CAGRfunds, we believe that there is always a simple layman-way of explaining things. So we generally pick up situations from your life to explain every relevant term to you. For example, if you are an entrepreneur and are wondering how risky will equity mutual funds be, we will perhaps take instances of how you set up your company to give you a sense of what risk in equity means.

Being able to de-jargonize and break down financial planning into simple concepts has helped us a lot in connecting with people who have limited understanding of finance and numbers or who are unable to take the right decisions about managing their money. And hence, we love to interact with people.

If you are one of them who wants to grow their wealth but is confused about how to go about it, maybe you should befriend us. We don’t charge you for a conversation, so no harm giving it a try!!

Whatsapp / Call us on +91 97693 56440 or email us on contact@cagrfunds.com.