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Case study on wealth management for retired senior citizens

Case study on wealth management for retired senior citizens
Background

Background

Recently Retired Couple

Recently Retired Couple

Received Gratuity, PFs & Other Benefits

Received Gratuity, PFs & Other Benefits

Not Using Money Immediately

Not Using Money Immediately

Case Characteristics

Case Characteristics

  • A senior citizen couple recently got retired together
  • The husband and wife were working in a private firm and a bank respectively.
  • Collectively, they received Rs.80 lakhs in the form of Gratuity, PF and other benefits.
Fascinating Findings

Fascinating Findings

  • The couple didn’t wish to use this money immediately and needed it only after 4 years.
  • They wanted to invest up to Rs. 30 lakhs for the time duration and make the money grow.
Actionable Alternatives

Actionable Alternatives

  • We advised them to invest Rs. 20 lakhs in Balanced Mutual Funds, as it would give them an annual payout return of 8.5% by the end of 3rd year.
  • This was more than any regular Fixed Deposit plans provided by banks.
  • Plus, Balanced Mutual Funds would allow them to stay invested in them as long as they want and the principal amount would grow each year.
  • At the end of the 4th year, i.e. from the 37th month, we suggested they start a Systematic Withdrawal Plan (SWP) of 9%, which sums up to Rs.19,000 per month.

Remarkable Results

Investment Rose Over Rs. 25 Lakhs.

Investment Rose Over Rs. 25 Lakhs.

The total value of their investment rose to Rs.25.54 lakhs at the end of the 3rd year.

Systematic Withdrawal Of A Fixed Sum.

Systematic Withdrawal Of A Fixed Sum.

After 4 years, the couple will receive Rs.19,000 every month as part of their SWP.

Total Investment Value Rose To 33.24 Lakhs.

Total Investment Value Rose To 33.24 Lakhs.

The couple withdrew Rs. 22.80 lakhs by the end of the 14th year, while their total investment value rose to Rs.33.24 lakhs.

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