Due to Diwali holidays, could not publish this last Sunday!
🧵 Thread-2: How NOT to plan for Retirement!
(1/n)
🧵 Thread-2: How NOT to plan for Retirement!
(1/n)
📅 Year 2018 – I was 2 years into the business, part-time.
A close relative retired that year.
He proudly told me he bought 2 LIC Annuity plans – ₹15L each for himself & wife.
Rate: 6.4%.
That’s ₹16k/month for life.
(2/n)
A close relative retired that year.
He proudly told me he bought 2 LIC Annuity plans – ₹15L each for himself & wife.
Rate: 6.4%.
That’s ₹16k/month for life.
(2/n)
Both policies from our common relative (LIC DO).
He also invested ₹2L in SBI Corporate Bond Fund — on advice of his SBI Bank Branch Manager. (3/n)
He also invested ₹2L in SBI Corporate Bond Fund — on advice of his SBI Bank Branch Manager. (3/n)
⏩ Fast forward to 2025 —
He tells me he also bought 2 SBI Life ULIPs in 2018 (same banker’s advice).
₹10L each.
Maturing in 2028.
That’s where the nightmare begins. 😐
He tells me he also bought 2 SBI Life ULIPs in 2018 (same banker’s advice).
₹10L each.
Maturing in 2028.
That’s where the nightmare begins. 😐
Imagine this 👇
A retired person sold ULIPs!
His ₹65L corpus used as:
💸 ₹30L – LIC Annuity (zero liquidity)
💸 ₹20L – ULIPs (locked 5 yrs)
🚗 ₹10L – Car (depreciating)
💰 ₹2L – Bond Fund (low return)
🏦 Rest – FDs (for routine expenses)
(5/n)
A retired person sold ULIPs!
His ₹65L corpus used as:
💸 ₹30L – LIC Annuity (zero liquidity)
💸 ₹20L – ULIPs (locked 5 yrs)
🚗 ₹10L – Car (depreciating)
💰 ₹2L – Bond Fund (low return)
🏦 Rest – FDs (for routine expenses)
(5/n)
No health cover.
He’s diabetic.
His wife had sciatica + both knees operated (₹4L spent).
Liquidity gone.
No medical safety.
This is how “secure” retirement looks when planned wrong. 😔
(6/n)
He’s diabetic.
His wife had sciatica + both knees operated (₹4L spent).
Liquidity gone.
No medical safety.
This is how “secure” retirement looks when planned wrong. 😔
(6/n)
Recently he shared ULIP PDFs with me.
And that’s when I got the real shocker! 😳
(7/n)
And that’s when I got the real shocker! 😳
(7/n)
ULIP #1 – SBI Life Smart Wealth Builder
Name says “Wealth Builder”… but fund value today = ₹11.70L.
📉 XIRR = 3.26%!
What kind of “wealth” is that?!
(8/n)
Name says “Wealth Builder”… but fund value today = ₹11.70L.
📉 XIRR = 3.26%!
What kind of “wealth” is that?!
(8/n)
Reason?
From ₹2L annual premium (5 yrs), ₹23,472 cut as charges — 11.73%!
Only ₹1.76L actually invested!
That’s daylight robbery, not investment.
(9/n)
From ₹2L annual premium (5 yrs), ₹23,472 cut as charges — 11.73%!
Only ₹1.76L actually invested!
That’s daylight robbery, not investment.
(9/n)
Asset allocation:
📊 20% Equity
📉 80% Bond Fund
Even Equity Savings Mutual Funds gave ~8% category average return!
(10/n)
📊 20% Equity
📉 80% Bond Fund
Even Equity Savings Mutual Funds gave ~8% category average return!
(10/n)
ULIP #2 – SBI Life Retire Smart (Pension plan)
On maturity, only 33% withdrawable.
Remaining 67% converted into pension.
Corpus now ₹13.99L.
XIRR = 6.99%.
(11/n)
On maturity, only 33% withdrawable.
Remaining 67% converted into pension.
Corpus now ₹13.99L.
XIRR = 6.99%.
(11/n)
First premium expense: 6.8%!
And guess what?
Person retired in 2018… but pension starts in 2028! 🤦♂️
What logic is this?!
(12/n)
And guess what?
Person retired in 2018… but pension starts in 2028! 🤦♂️
What logic is this?!
(12/n)
Neither policy mentions Diabetes as PED.
He gave all reports, fully disclosed.
Banker ignored it.
And of course, that banker has already left the branch.
(13/n)
He gave all reports, fully disclosed.
Banker ignored it.
And of course, that banker has already left the branch.
(13/n)
Now we’re exploring options to surrender both ULIPs…
and re-invest prudently for better monthly income + liquidity.
🩹 Damage control mode ON.
(14/n)
and re-invest prudently for better monthly income + liquidity.
🩹 Damage control mode ON.
(14/n)
💡 Lessons to Learn:
1️⃣ Never ask your banker to plan your retirement.
2️⃣ Post-retirement – Liquidity is your real jewel.
3️⃣ Get health cover before 30s.
4️⃣ Get help from a professional retirement planner.
(15/n)
1️⃣ Never ask your banker to plan your retirement.
2️⃣ Post-retirement – Liquidity is your real jewel.
3️⃣ Get health cover before 30s.
4️⃣ Get help from a professional retirement planner.
(15/n)
Retirement isn’t about returns.
It’s about:
✅ Regular income
✅ Liquidity
✅ Peace of mind
Plan smart. Live stress-free. 🙏
(16/n)
It’s about:
✅ Regular income
✅ Liquidity
✅ Peace of mind
Plan smart. Live stress-free. 🙏
(16/n)
If this story helped you, share it.
Many retirees are silently trapped in such “products”.
Awareness is the first step toward freedom.
#RetirementPlanning #FinancialAwareness #ULIP #PersonalFinance #GrowProtectProsper #flowrichfinserve
(17/17)
Many retirees are silently trapped in such “products”.
Awareness is the first step toward freedom.
#RetirementPlanning #FinancialAwareness #ULIP #PersonalFinance #GrowProtectProsper #flowrichfinserve
(17/17)
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