Retirement advice old fashioned
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.
Post Footer automatically generated by Add Post Footer Plugin for wordpress.
babon
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?
Santhanam
@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.
babon
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?
Mira D
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.
babon
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.