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I was guided properly when I wanted to save for my future retirement. I was worried as I will not get a pension post my retirement. The investment in Shares is too risky and I did not want to keep my hard earned money in shares. The RBI savings bonds helped me to get interest at 8% paid to me once in 6 months. The options provided to me by the efficient relationship managers of VERITAS helped me have a peaceful retired life.
Financial health checkups and well-being
The client was retiring from state government service in 2000 and the pension amount expected was Rs.15000/- per month at that time, which has now increased to Rs.36000 p.m. His goal was to create a corpus amount which could generate income for his visually handicapped son.
It was suggested that a long term investment like Jeevan Shree of LIC could meet his goal partially. He invested in the 25 years policy with a premium paying term of 10 years and would get Rs.25 lacs at the end of the term. In addition to this, he was advised to invest Rs.5 lacs in 5 different mutual funds schemes, especially the equity oriented schemes. These funds performed well over the long period. In between when markets crashed, there was panic and he exited out of 2 funds, but the balance he continued to hold. Today the value on his investment is healthy giving him a return of more than 40%.
For his medium term liquidity, he invested Rs.20 lacs in ICICI bond for a period of 5 years, which matured in 2021 and he will utilize this to meet his medical expenses and house repairs. From 2019 onwards, I advised him to open a 3-in-1 trading account which enables him to execute orders like IPO , FD’s in private companies and NCD’s. At the time of listing , any gains would be encashed.
It took him 15 years to achieve some of his goals and he is happy that his investments are being balanced over different products. He is risk averse and has not direct exposure to equities.
Even MF one time investments were fluctuating and 2 years after his entry when the equity market crashed, he pulled out his money partially and switched to bank FD’s. The SIP mechanism was not as simple as today and he was not confident in giving post-dated cheques for investments. The return calculation to him was complicated and avoided doing any SIP’s.
Once in 6 months his portfolio is monitored.All tax exemption forms are filled and submitted to the issuers of bonds,FD’s etc. We also help him file his tax returns and ensure that any TDS deductions done erroneously are refunded to his account.
When there was the equity crash of 2007-08, the client was advised to exit some equity MF’s and switch to bank FD’s. He was also told to invest in fixed income bonds like ICICI , BOB etc, which were having a residual maturity of 5-6 years giving him an yearly coupon of 10% interest.
The LIC jeewan shree policy is active and premium paying term will get over in dec 2016 and he need not pay the premium further and will get Rs.25 lacs after 9 years. The liquidity needs to run his family is getting met through his monthly pension and interest on bonds to some extent.
He is now planning to purchase another house as his savings were healthy and was able to beat the inflation and also meet his medical expenses for himself and his family.
In 2020 ,he was advised to take up a New India assurance mediclaim policy for senior citizens.