This article introduces the Arthgyaan Retirement Package which simplifies investment decisions for retirement by optimizing portfolio allocation, rebalancing strategies, and long-term wealth creation.

📚 Table of Contents

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• Retirement Planning in your 40s and 50s: how to simplify creating and managing a retirement portfolio in 2025
• Introducing Arthgyaan Retirement Packages
• How is the Arthgyaan Retirement Package portfolio created?
• What are the basics needed to get started with an Arthgyaan retirement package?
• How to get started with the Arthgyaan Retirement Packages?

Retirement Planning in your 40s and 50s: how to simplify creating and managing a retirement portfolio in 2025

“nastiest, hardest problem in finance.” - William Sharpe, Nobel Prize winner, regarding the withdrawal stage of retirement

What Are the Key Risks in Retirement Planning?

Retirement planning involves unique risks beyond just saving money. Key challenges include longevity risk (outliving savings), inflation (rising costs eroding value), and market fluctuations (affecting investments). A structured approach, such as the Arthgyaan Retirement Package, addresses these concerns by allocating and rebalancing assets across three buckets.

Retirement planning can be daunting for those who have either not started planning for retirement or are having difficulty choosing from the multitude of investment options available in the market today. There would also be investors who have already started investing but require guidance regarding reviewing their portfolios. There are multiple general challenges in investing:

• where to invest
• how much to invest
• how to manage existing investments

However, with retirement, there are a few unique risks:

• longevity: how long will you be alive and will your money last until then
• life situations: how to handle medical emergencies or recurring high medical costs
• inflation: what if prices go up suddenly
• the sequence of returns: what if markets fall suddenly or stay depressed for long periods

The way to handle these risks is to acknowledge that they exist, take steps today that allow you to create a portfolio that fulfils your retirement goal and create a review process to manage these risks. An easy way to create a Retirement Portfolio, that takes care of all these aspects, is via the Arthgyaan Package.

Introducing Arthgyaan Retirement Packages

The Arthgyaan Package is a structured investment plan for retirement, ensuring financial security in later years through systematic wealth accumulation.

Each package encapsulates the portfolio creation assumptions (equity / debt / cash asset returns, inflation, longevity and rebalancing plan) and creates a mutual fund (and EPF, PPF and NPS if applicable) portfolio.

Rebalancing is done annually or when asset classes drift by more than 5% due to market fluctuations.

Each portfolio has assets that are allocated into the three buckets and come with the rebalancing plan as above.

How is the Arthgyaan Retirement Package portfolio created?

We model each year in retirement as a single financial goal and apply the standard goal-based investing principle to that goal. The retirement portfolio is the sum of each year’s investment allocation.

Assets are then allocated into these three buckets:

• Bucket 1: Cash - The purpose of this bucket will be to hold living expenses for the next five years
• Bucket 2: Income assets - The purpose of this bucket is to hold assets that generate income. Income from this bucket will be for day-to-day expenses
• Bucket 3: Growth assets - This bucket will have everything not in buckets 1 and 2 above. This bucket exists to provide growth that beats inflation over time

Each bucket by default assumes a lifestyle of ₹12 lakhs/year i.e. ₹1 lakh/month as per today’s costs and adjusts it forward for inflation. The package can be customised for a higher or lower lifestyle cost.

In the beginning, we will allocate the current portfolio, assuming 5x the target annual expenses, i.e., ₹60 lakh into the three buckets.

The allocation of assets between the different buckets is part of the rebalancing plan and looks like the chart above.

What are the basics needed to get started with an Arthgyaan retirement package?

At all times ensure that you have the following in place when you are getting started

• An emergency fund with 6-12 months of expenses
• A term insurance policy (unless you are retired with no income)
• A health insurance policy (separate from the company-provided one, if any) for 10-15 lakhs as a base policy with a 50-100 lakhs super-top up
• A personal accident insurance coverage to safeguard against accidents where you do not die but cannot earn
• No high-interest debt like credit card or personal loans

After that, the rest is simple with periodic reviews for rebalancing throughout the lifecycle of the goal over multiple decades. This is where the key value-add of the Arthgyaan Retirement Package comes with not just an initial portfolio of funds but the over-time course corrections and hand-holding over different market cycles.

How to get started with the Arthgyaan Retirement Packages?

Choose the year closest to your desired retirement year to get started:

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