Here are some more things which people tell you regarding retirement. Here I am bashing them as wrong. It may have been right a few years ago…no longer true.

1. Your debt and equity asset allocation should be based on the 100-age rule: So if you are 70 years old, it should be 100-70 should be in equities, i.e. 30% should be in equities. Well the answer is, if say your expenses are Rs. 5 lakhs per annum, and you estimate that you will live for say another 15 years, then Rs. 75 Lakhs should be in debt funds/ bank fixed deposits / ppf, etc. Balance should be in equities. Forget the age rule of asset allocation.

2. In a worst case, you can always go back to work: Forget this. It will NEVER, EVER happen. We are a young country and there will be tremendous pressure on older people to retire. Yes if you can migrate to jobs or geographies where there is a skill shortage – Germany, France, UK….you stand a decent chance. In India old people cannot FIND jobs.

3. You can downsize your house and use the equity created for creating a bank oriented asset class. This will not happen in a hurry, forget it.

4. In a tight situation you should withdraw from your Pf or ppf : well it is given as ‘Subra I said it is ok’ – does not matter who says what. Do not withdraw. Simple.

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  1. Subra Sir,

    What is the easy way to track dividend income from stock I own?
    I mean how to figure out that dividend has been declared etc?
    I am not able to find any link in my demat a/c (ICICI direct). Do I need to rely only on websites like moneycontrol.com?

  2. @babon,

    My demat a/c is with a DP/Bank tied to NSDL. Whenever a dividend is credited for a stock which i own, i receive an email from Karvy intimating about “Dividend Credit Intimation” to my email-id registered with my DP. Please note that this email(with subject line having “Dividend Credit Intimation”/”Intimation for credit of Dividend”) may come a few days/weeks after the Dividend has actually been credited to your Bank A/c registered with your DP.

    I just tag “Dividend Credit Intimation” emails to track the dividend income for the stocks i own. Also add the dividend information to a sheet in an Excel File where i maintain the details about my stocks portfolio.

    I follow this simple system which is not dependent on any websites (either my broker or moneycontrol.com etc.).

    As you may observe, i track only the “Dividend Credit Information” and not “Dividend Declaration”, since as you know a company may declare dividend, but actual credit of dividend amount to your Bank A/c. will be be later. In my opinion/system, i avoid “Dividend Declaration” tracking to simplify/less-complicate my system.

    Thank You.

  3. Santhanam,

    Thanks for your reply. However, how can we cross check that we are not missing dividends i.e. a company declared dividend, but it was not credited (for some reason) to my S/B account?

  4. At the end of the monthly demat statement they do give a list of corporate actions like div. I also have icici demat, and I get an email from the company every time a dividend is declared.

  5. Thanks Mira for the pointer. I receive only quarterly statement which lists only the buy/sell for each company. Will check with the icici support.

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