Retirement is a term of relief from long years of hard work in a job you may or may not like. Many wish they could retire anytime between 45-65. However, when people's retirement plans are revealed, they are often less on target than anticipated.
Here’s some data that sums it up,
68% of working-age people expect to be supported by their children at some point in their post-retirement life.
50% of people believe they will exhaust their retirement in 10 years.
51% of urban working groups in India don’t have retirement plans.
Why should one plan their retirement?
- Longer Life Expectancy: Currently, the average life expectancy is 85 years
- Inflation: In the last 40 years, India has seen an inflation of 7.5% per year
- Lack of a government-sponsored structured social security system
Do you want to work and wait till your retirement to be able to live your dreams, or be smart and invest in passive alternative low-risk investments that make working a choice, not drudgery? Ensure your post-retirement life is secured with complete financial independence. Grip brings some of the best investment options that you should know about.
- Corporate Bonds: A financial product sold to investors by the government or companies to raise funds in the form of debt from investors. Invested funds are used for operations or Carpex in exchange, the investor earns interest on the investment. The US$2 trillion worth of the Indian bond market is on a 15% YOY growth over the past 10 years. The investors mostly comprise financial institutes, corporate treasuries and family investors. These low-risk A+ rated bonds ensure high returns that scale up to 8-11% which is way over traditional investments like FDs, despite market performance. The deposit tenure is only for 15-36 months. Until now common investors could not invest in them mainly for three reasons: high ticket size, limited access and lack of awareness. The Grip platform has made curated corporate bonds accessible at a low ticket size of just ? 10,000. At Grip, these bonds are backed by secured collaterals, rated A and above by CRISIL or ICRA. The maturity yield is 8-11%. The NSE/BSE listed bonds are held in your demat accounts. As an investor, you can keep investing in this short-term investment and building capital funds for more interesting investment opportunities.
- Asset Leasing: Another exciting investment option to help you plan a wealthy retirement is asset leasing. This excellent new-age investment is based on an old concept framed in a new model by Grip. Nowadays, companies are preferring to work on asset-light models. Without blocking capital by purchasing machines or equipment, companies are taking them on lease. By entering into a contractual agreement with the lessee(company inviting the lease) and lessor(owner or the investor), regular payment in exchange for the used asset is offered for a set period. Investors in the lease can invest in furniture, vehicles, etc and receive fixed, non-market linked, monthly returns, which companies can use to scale faster. Individual investors can earn up to 21% pre-tax IRR on investment within 24-36 months. This short-term investment offers an opportunity to reinvest at a higher capital or build assets for high-ticket long-term investments that can help you plan an early retirement.
- Inventory Finance: For those who love stability from fixed income, inventory financing is an investment option that will help you gain a 12% pre-tax yield within 1-13 months with a small ticket investment of only ?10,000. This asset-backed investment is for those who are eyeing higher returns at a lesser risk than equity investment. This alternative investment, though new, is gaining speed. For example you are investing in a private, lesser-known startup in India manufacturing electric cars. This company uses Grip to invite financing from investors for the various components they need to assemble their automobiles. The maturity period is 6 months allowing you to earn a pre-tax IRR of 11.6%.
By supporting a startup through inventory financing you earn steady and healthy returns and at the same time sustain the financial ecosystem of the country by backing a startup through crowdfunding.
- Start-up Equity: With success from startups in the country, angel investors want to be part of a startup success story. But until now it seemed impossible for a common investor owing to high ticket investment. Grip found crowdfunding potential in this investment and its platform included VC-backed, early-stage startups with a promise of high disruptive growth. Investors can participate alongside a leading VC/investor that performs due diligence and also negotiates, taking management roles in the company once the investment is made. This is a high-risk investment returning high rewards. You only require investment worth ?2 lakhs on long-term growth. If you have a high-risk appetite and fund in shares, try including startup equity in your portfolio. This investment holds immense growth potential. By using funds from short-term gains of bonds, leasing and inventory financing, you can fund startup equity and enjoy passive income from this investment after you retire.
- Commercial Real estate: Investing in commercial real estate is a sure short investment that brings regular returns from rentals and experiences periodic value appreciation. But let's face it, commercial real estate investment is a large capital investment that is not meant for ordinary investors. This investment is mostly settled within known connections, so people are unaware, the challenges of day-to-day management can put off investors. Now here is what Grip brings, you can invest in commercial real estate with a small capital of only ? 1 Lakh. You will be investing in world-class commercial properties developed by top real estate developers in the country. These properties are pre-leased to MNC or marquee Indian tenants for 5+ years. You earn quarterly rentals proportionate to your investment sum along with the appreciation price on the property when you exit. The expected average yield is over 10% and you can co-invest with reputed investors. So what are you waiting for, want to lease a property worth ?50 crores with a small ticket size of just ?1 lakh? You will not be required to worry about the day-to-day hassles that come with owning a property as Grip's partner's shoulder all management woes. You just need to watch the numbers growing on your investment.
All this while you have invested in traditional or high-risk investments, but as professional financial advisers, recommend growing portfolios for maximum benefits. Grip is a disruptive alternative investment platform that gives you an unconventional opportunity to imagine a better future that can turn into reality. Why not add these extraordinary financially scaling products to your general investment profile and watch them perform against the financial route you have always followed? The best part about these investments is, they are low-risk, low-ticket short-term and long-term products so, why not try them out? Once you succeed you can recommend and earn from referrals. Visit Grip for more information.