Is Your Retirement Plan Truly as Attractive as It Seems ?

 

*Is Your Retirement Plan Truly as Attractive as It Seems ?*

Dear Client,

Let me share a story that might help you make smarter financial decisions for your retirement.

*Yesterday, a client, Mr. Raj, called me about a retirement plan that his friend had recommended. At first glance, the plan seemed incredibly attractive:*

Pay ₹10,000 per month for 10 years (a total of ₹12 lakhs).

Receive a guaranteed payout of ₹74 lakhs at the age of 60.

Who wouldn’t be drawn to this? It sounds like an amazing deal.

But here’s the catch. When I analyzed the plan, I found that it was offering an Internal Rate of Return (IRR) of only 6.2% per annum. That’s much lower than what many other investments can offer.

To add to this, Mr. Raj didn’t realize that the maturity amount was calculated assuming an investment age starting at 25 years, not his current age of 40 years. This small detail made a big difference.

*What can we learn from this?*

Some plans may sound too good to resist at first, but a deeper look often reveals their true potential—or lack of it. By choosing plans like this, you might be missing out on better opportunities for higher returns and financial growth.

*What’s the alternative?*

Retirement planning should be about maximizing returns while ensuring financial security. There are other options that could give you:

Higher returns than 6.2% per annum.

More flexibility to match your current age and financial goals.

Let’s talk!

I’d love to help you review your current plans or explore smarter alternatives to secure your future. Feel free to reach out, and we can discuss what’s best for you.

Best regards,

Rajesh Kathpalia

Finguide Buddy