Moneylife Events
Retirement planning for the elderly
Retirement has to be an enjoyable experience, but if not planned properly can lead to a disaster. Moneylife Foundation today held a seminar tackling this important theme.

Moneylife Foundation held an exclusive workshop for senior citizens on “Planning Your Money-life Post-retirement” on 14 May 2014 at the Moneylife Knowledge Centre. The session was conducted by Sucheta Dalal and Debashis Basu, Trustees of Moneylife Foundation.  
 
Sucheta Dalal, managing editor of Moneylife, began the session by emphasising on how important safety, security and financial independence are for the elderly with the changing times. Ms Dalal took the attention of the audience on the increasing number of Ponzi schemes in the country which are more likely to con the elderly, as they form an easy target for the sales agent. According to the U.S. Federal Trade Commission, “80% of scam victims in the US are over 65”, which is a matter of concern, warning them to beware and distinguish purchasing consumer products from financial products. 
 
She suggests the use of the Moneylife Insurance Helpline, Disha- financial counselling or Abhay promoted by Bank of India for assistance on choosing the best insurance product and to avoid being financially conned. 
 
Ms Dalal further put light on the statutory provisions such as the Maintenance and Welfare of Parents and Senior Citizens Act, 2007 which provides legal protection to senior citizens. Another important but less know act. The Married Woman Property (MWP) Act allows an individual to buy a policy for himself under the Act and create a trust for the same. The welfare of wife and children can be protected as MWP insurance policy is free from creditors and court attachments. Even the Special Marriage Act, 1954 is an important legislation which may act as a family certificate making any legal work hassle-free. 
 
She ended by giving a brief introduction on estate planning such as Wills, Trust, gift, insurance, nomination, etc and the issues surrounding them. Getting a Will right is crucial if disputes between heirs over legacy are to be avoided. “Nominations make things easier, but it’s important that people observe basic financial hygiene and keep updating their nominations” says Ms Dalal.
 
In his session, Mr Debashis Basu, editor and publisher of Moneylife, started by explaining the many unknowns surrounding a person's life before and after retirement such as “How much to save for retirement?”, “Where to invest?”, “How long should the savings last?”, “Expected Return of the portfolio?” etc. All these questions were explained in detail making the mindboggling financial retirement savings simple and easy to understand in the seminar. It’s important to save regularly to deal with big expenses such as education for children and more importantly for retirement. Thus, it’s important to spread risks and invest smartly. “It’s important to start saving as early as possible in order to save as much as possible for to create a corpus that will last 25-30 years post- retirement” says Mr Basu. 
 
In order to answer one of the most important questions, “How much is enough?”, it is important to define your retirement, set target for savings and save towards it, said Mr Basu. Mr Basu suggests the use of the financial planning calculators available on the Moneylife Savers website—savers.moneylife.in/calculators.html , to help make the number-crunching easier. An ideal asset-mix would depend on the age and the number of dependents of the person. 
 
He further emphasised on the new concept available for the “asset rich-but-cash poor” elderly called reverse mortgage. It is an agreement with a bank or a housing finance company, where they value your property and pay commensurate amount to you monthly. This amount can cater to your expenses. In case your legal heirs want the house to go to them, they can repay the amount. Or else, the bank sells your property, takes its money back, and pays the rest to your legal heirs. There are various reverse mortgage-enabled lifetime annuity plans such as- life annuity without return of purchase price or the amount spent to buy the annuity plan; life annuity with return of purchase price, which will be used to buy annuity for the spouse on death of the primary borrower; and life annuity with increase at a simple rate of 5% per annum and return of purchase price. 
 
The session was ended with an interactive session of Q&A with the audience having all their doubts cleared.

User

COMMENTS

Gulobi Fernandes

3 years ago

Thank you very much, Sucheta and Debashis for your efforts at empowering us with financial literacy, through your MoneyLife Foundation programs and events.

Gulobi Fernandes
MoneyLife Subscriber

Dhaval Shahshikant Shah null

3 years ago

MONEY LIFE FOUNDATION REGULARLY DOING GREAT WORK TO GIVE FINANCIAL AWARENESS TO THE PEOPLE , FOR THE PEOPLE.

CONFRATULATION TO MR.BASU& MS. SUCHETA DALAL & ENTIRE TEAM.

I am very happy if by any means I can join & to be part as money life. I am eagerly waiting for any Financial awareness seminar in Baroda. I am very keen to attend any seminar . I was already one seminar in Ahmedabad.

Samantha Wright

3 years ago

This kind of seminar is very timely since people are living much longer and because of inflation. People concerned should plan ahead in order to have enough funds to support their desired lifestyle and other expenses. Most people fail to plan ahead and anticipate expenses like healthcare or long-term care. It's good that Ms. Dalal was able to answer the most important questions everyone asks when planning for retirement. A lot of people need guidance when investing their money and buying the right insurance products. I believe that insurance is important in retirement planning particularly long term care insurance since according to http://www.ltcoptions.com/long-term-care-insura... it helps pay for care expenses like nursing home, assisted living facility, CCRC and adult day care. I hope there will be more seminars like this because this can greatly people in planning for their retirement.

Samantha Wright

3 years ago

This kind of seminar is very timely since people are living much longer and because of inflation. People concerned should plan ahead in order to have enough funds to support their desired lifestyle and other expenses. Most people fail to plan ahead and anticipate expenses like healthcare or long-term care. It's good that Ms. Dalal was able to answer the most important questions everyone asks when planning for retirement. A lot of people need guidance when investing their money and buying the right insurance products. I believe that insurance is important in retirement planning particularly long term care insurance since according to http://www.ltcoptions.com/long-term-care-insura... it helps pay for care expenses like nursing home, assisted living facility, CCRC and adult day care. I hope there will be more seminars like this because this can greatly people in planning for their retirement.

MG Warrier

3 years ago

Great effort indeed. The information needed to 'start early' does not reach the real 'clients' at the right time and even if it reaches, the age group 30-50 just postpone even thinking about future as the savings needed will eat into their comforts. Now that all traditional safety nets are being destroyed or are getting disintegrated(yes, I have defined benefit pension schemes and joint family system uppermost in my mind), there is no escape from creating a well-balanced asset base to support oneself post-retirement or let me put it bluntly, post-job! Though it is not supported by any research, as one who has been watching the happenings in the wages-income-prices areas, my advice to the employed who depend on wages for survival is, save minimum 30 to 40 per cent of current income for retirement, assuming effective service period as 25 years and post retirement span another 25 years. Ideally, savings at a lower level should continue post-retirement, considering the rise in longevity.

Ramesh Poapt

3 years ago

Great! I Request ML to provide more details on reverse mortgage schemes and institutes which deals in that.

Paul dmello

3 years ago

Since I am about to retire could u enlighten me whether the gratuity amount payable can be kept at 10 lacs limit which I believe is an amount allowed by tax rules to go without tax. Is it legal for a company to use this as a limit though the gratuity amount by calculation could exceed much more. Thanks

Sensex, Nifty may move sideways: Wednesday closing report
The market will remain directionless until the election results are clear 

After a relentless rally, market finally seem to be pausing for breath and some serious profit booking from the very start of trading today. Stock indices struggled to stay in the green without any success and the downtrend was visible all through the session.
 
Sensex opened at 23,898 while the Nifty opened at 7,112. The indices lost strength after hitting a high of 23,965 and 7,142 and edged lower to hit a low of 23,753 and 7,081.
Sensex closed at 23,815 (down 56 points or 0.24%) while Nifty closed flat at 7,109. The NSE recorded a volume of 117.36 crore shares. India VIX rose 1.16% to close at 32.4200.
 
The top five gainers among the other indices on the NSE were Realty (4.22%), P S U Bank (3.32%), Metal (3.27%), Nifty Midcap 50 (2.56%) and Dividend Opportunities (2.18%) while the top five losers were Energy (0.73%), Pharma (0.43%), Finance (0.33%), I T (0.16%) and Auto (0.08%).
 
Of the 50 stocks on the Nifty, 30 ended in the green. The top five gainers were Bank of Baroda (9.60%), Jindal Steel (6.51%), Tata Steel (5.95%), DLF (5.45%) and NMDC (5.07%). The top five losers were M & M (3.67%), Dr Reddy (3.48%), HDFC (1.91%), Reliance Industries (1.74%) and HDFC Bank (1.71%).
 
Of the 1,572 companies trading on the NSE, 958 companies closed in the green, 537 companies closed in the red while 77 companies closed flat.
 
Tata Steel (5.91%), top gainer among Sensex 30 pack, was in news for its plans to raise $1.24 billion overseas through the sale of bonds. This is part of a mega $7 billion debt refinancing initiative for Tata Steel Europe, formerly known as Corus.
 
After posting weak consolidated net profit Dr Reddy’s Lab was the top loser in the Sensex 30 stock for the second consecutive session. Bank of America-Merrill Lynch downgraded the stock to "underperform" from "buy," and Morgan Stanley too downgraded it to "equalweight" from "overweight". Dr Reddy’s Lab fell 3.51%.
 
Indian Bank recently came out with a weak quarterly result and annual result. However it was the top gainer in ‘A’ group on the BSE, rising 11.73%.
 
Bajaj Finance was the top loser in the ‘A’ group on the BSE, falling 4.35%, despite better results.
 
 Bank stocks will be in focus in the coming days as a committee appointed by the Reserve Bank of India (RBI) under Dr P J Nayak has reportedly proposed that the government should cut its stakes in state banks to below 50% and establish "fully empowered" bank boards. This has already triggered angry protests from bank unions. The All India Bank Employees Association has issued a strong letter of protest and has threatened country-wide protests, rallies and agitations. The news moved the banking stocks higher. The stocks which came among the top 10 gainers in the ‘A’ group on the BSE were Indian Bank (11.73%), Canara Bank (10.68%), Central Bank of India (10.37%), BOB (9.22%), Union Bank (8.92%), Bank of India (8.21%) and IOB (8.17%).
 
US indices closed flat on Tuesday. US retail sales increased 0.1% in April following a revised 1.5% jump in March that marked the biggest gain in four years, Commerce Department figures showed in Washington.
 
Except for Shanghai Composite (0.14%) and Nikkei 225 (0.14%) all the other Asian indices closed in the green. Jakarta Composite (1.43%) was the top gainer.
 
China's central bank called on the nation's biggest lenders to accelerate the granting of mortgages. The People's Bank of China told 15 banks yesterday to “improve efficiency of service, give timely approval and distribution of mortgages to qualified buyers”. It also urged lenders to give priority to families buying their first homes and strengthen their monitoring of credit risks.
 
European indices were trading marginally lower as were US Futures.

User

Bouncers at Geodesic's AGM; are promoters afraid of shareholders?
Geodesic recently held its annual general meeting. Shockingly, the shareholders found a dozen bouncers at the AGM

Geodesic Ltd, the internet software and service provider, which has run up more than Rs1,200 crore of liabilities, defaulted in repaying its foreign currency convertible bond (FCCB) holders and loans to financial institutions, recently on 10th May, held its annual general metting (AGM). One of the shareholders told Moneylife about the presence of the “bouncers at the AGM”. Instead of protecting the interest of the shareholders, did Geodesic hire bouncers to protect its promoters from the shareholders? 
 
Nitin Rao, a shareholder, who attended the Geodesic AGM shared his expreinece on his blog: www.alphaideas.in. He wrote, “the meeting was sparsely attended by shareholders but there were around a dozen bouncers at the AGM. Either the management wanted to intimidate shareholders or they feared the proceedings will get rowdy.”

According to Wikipedia.org, bouncers (informal term for a type of security guard, employed at bars, nighclubs or concerts) are required where crowd size, clientele or alcohol consumption may make arguments or fights a possibility, or where the threat or presence of criminal gang activity is high.
 
“The meeting started with the chairman welcoming the shareholder who mentioned that he wanted to be upfront with the shareholders and accounts had to be restated owing to write off of receivables etc. The chairman said, FCCBs couldn’t be repaid as funds are locked into investment accounts and liquidating them now will result in not meeting their liabilites. He gave the status update of all the court cases on Geodesic. He invited the shareholders to join the Board to help the company in its time of crisis,” Rao wrote in his blogpost. 
 
During the meeting, one of the investors from Nashik, said that, “Chairman had lied to shareholders, accounts had to be restated as all the sales were fake. FCCBs couldn’t be repaid as the money has been siphoned off by promoters and alleged that the promoters are thieves and he had lodged a police complaint against them.”
 
In reply, Prashant Mulekar of Geodesic, told the investor that all these were lies and the company is being harassed. Mulekar also accused the investor of filing a complaint against the promoters at Nashik. The shareholder had apparently told the police that the promoters had met him at his hotel in Nashik and encouraged him to buy shares in the company, painting a rosy picture., the blogpost mentioned. 
 
According to Rao, at this point, shareholders sympathetic to the management, got up and alleged that the AGM could not be monopolised. They urged that the resolutions were passed quickly. There was one “investor” in particular who was a clear plant of the management, he said. 
 
“After this,” Rao said in his blog, “all the resolutions were moved and passed with a show of hands within next 10 minutes. The proceedings took a farcical turn when some 'shareholders' went on to the stage to express her thanks for printing the company annual report on 'glossy paper'! Another wanted to go to the company’s site (property) in Uttarakhand. At the end, the company secretary announced that snacks are ready to be served which invited a headlong rush among the shareholders.”
 
In a regulatory filing, Geodesic said, it has adopted audited accounts for the FY2011-2013 and FY2012-2013, reports of directors and auditors along with relevant enclosures. It also re-appointed Prashnt Mulekar as director and Borkar & Mazumdar as its statutoruy auditors for next five years. Geodesic also said that it had to recast its accounts for FY 2011-12 which resulted in delayed audit for FY 2012-13.

Moneylife earlier wrote, Crazy about “corporate governance norms”, SEBI is blind about Geodesic. The shareholders of Geodesic have already lost their value as its share prices are around Rs3 and BSE transfered it to 'T' (Trading Settlement) group. While many Shareholders who complained Securities Exchange Board of India (SEBI) about the company, the market regulator, so far, has failed to take any action against Geodesic and its promoters.
 
Moneylife's email to Geodesic asking, why the company needs to hire services of bouncers at its AGM, remains unanswered till writing this story. We will incorporate their views as soon as we get a reply.
 
You may like to read more stories on AGM
 
 
 
 

 

User

COMMENTS

DDMisra

2 years ago

What should the ordinary minority share holders of Geodesic Ltd. do? What is the position of the appointment of the liquidators ordered by Bombay High court?

Ram Robert Rahim

3 years ago

This is not only company of this kind. There are others also like Shree Ganesh Jewellery (I) Ltd., Gitanjali Gems

Bapoo Malcolm

3 years ago

Be prepared for more of this.

Bapoo M Malcolm

Krishnaraj Venkataraman

3 years ago

This company has been alleged to have not paid salaries for many many months. It has been alleged that part of FCCB funds were routed to an offshore account controlled by the promoters.

The company does not have an independent director and is not in compliance with listing norms and yet BSE does not de-list the firm! The company says it cannot find independent directors; I mean who will want to be one?!

The comments of the Hon'ble Judge in one of the many cases the company is fighting is worth noting.

Sad to say Mr Mulekar (the CFO / Promoter) comes from reputed institutes like IIM Lucknow and VJTI.

We are listening!

Solve the equation and enter in the Captcha field.
  Loading...
Close

To continue


Please
Sign Up or Sign In
with

Email
Close

To continue


Please
Sign Up or Sign In
with

Email

BUY NOW

The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)