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Client Success Stories

Prabhu and Rukmini

“Can we maintain same lifestyle after Retirement?"

Goal

  • Remove dependency on only one source of income i.e rent from property
  • Develop an Estate Plan to distribute their wealth after them
  • Plan for Charitable Gifting at the age of 75

About

  • Prabhu and Rukmini worked as teachers at a private school
  • They have two daughters, both of them are married and now live in U.S.A and have families of their own
  • Retirement from a private job meant no pension income. But during their working years, they were able to buy a residential property apart from the flat that they currently live in
  • Rent that they receive from this property is now the only monthly source of income. They have to take care of their day to day expenses and healthcare from this income

How We Helped

  • Step 1

    Retiring from a private job and depending on just one income source is the biggest mistake one can make. In case of Prabhu and Rukmini, there were two big risks, firstly the rental income was not guaranteed, becuase tenant keeps changing and it takes some time for new tenant to accommodate and they would not receive income till the next tenant moves in. Second risk was that the rental income received as opposed to value of the property was less that what one would receive in the bank fixed deposit.

  • Step 2

    We all mutually decided to sell off the property and invest the proceeds into a few good fixed income instruments and also bought a good annuity plan. Now, the monthly income that they receive is double the amount that they were receiving earlier. Also, they are now free from not worrying about the maintenance of the property and finding tenants once the earlier one leaves.

  • Step 3

    In consultation with an Estate Planner and a lawyer, we constructed a plan to distribute whatever wealth Prabhu and Rukmini hold in case of demise of either. A TRUST under their joint name was incorporated. All their property will be owned by the trust and whatever earnings are made on these assets, which will be proportionally distributed to their grandchildren. Also, a small proportion of these earning will be donated to charity every year.

  • Step 4

    A final update on all their nominations in assets was done. Also a financial planning checklist was created so they could knew what variables they needed to check to ensure they remain on track and live stress-free.

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