Assured Income Plan
How it works
Mr. Sharma is a 31 years old income earning person.
He chooses to Invest 2 lakh for 12 years. That is 24 Lakhs (2 Lakh/year x 12 years= 24 Lakh Rs)
Additionaly he chooses to take a payout of rupees 79 thousand every year.
He keeps withdrawing this 79 thousand every year for the next 39 years,
until his age becomes 70 ( 31 present age + 39 future years = 70 Age).
The total payout taken in 39 years = 79 thousand/Year x 39 Years = 30 lakh 81 thousand.
At the age of 70, He decides to exit his investment. And withdraws the balance amount for retirement expenses.
He gets to choose between two plans offered by us.
- One is the Guarantee Plan. Where the payout amount is 48 lakh rupees.The return on this plan is a Internal rate of Return at 5.8%
- Second is the Alpha plan. Where the payout is market linked. Therefore Varies as per the rate of return generated. (Example:- An 9% IRR could provide a 2 crore payout. An 11.5% IRR could give a payout of 5 crore.)
He can finally invest in building a home in his native land. Retire. And be the favourite rich grandfather in the family.
Also, in case of an unfortunate event of his death, his nominee will receive the entire amount available in his own demat account.
1. Guarantee Plan FAQ
We are SEBI registered Investment Advisors who are licensed to provide advice on financial planning and its plans. But Most important piece of information is this: You do not have to transfer any fund to us. You get scammed only when you transfer funds from your bank account to an unknown entity.
Here you will send funds from your bank account to your own demat account with any stock broker you trust.
We moneydhan simply email our advice in exchange for a fee.
Our income is fees just like the lawyer who guides you and earns fees. We do not touch your corpus ever. Which is a trust flag beyond the SEBI RIA license we hold. Right?
The return for the Guarantee plan is represented by the Internal Rate of Return (IRR) at 5.6% (approx)
The Guarantee plan offers a fixed payout amount of 48 lakh rupees,
while the Alpha plan’s payout is market-linked and varies based on the rate of return generated.
Guaranteed plan is offered by a third Party, IRDA Licensed Insurance company.
Guarantee plan offers death benefit upto 20 lakhs.
In case of Alpha plan, where we just advise you via email. We would advise client to take up an term plan which will mimic this death benefit plan.
Your decision should consider factors such as risk tolerance, investment objectives, and desired returns. Consulting Moneydhan, a SEBI approved Expert team, can help align the plan with your financial goals.
A guarantee plan is a contract between you and a Insurance company.
In return for those guaranteed benefits, they will ensure that you honour the contract.
For desired results, you must keep paying those premiums on time, for 12 years.
If you intend to halt the premiums, You loose those other benefits.
If you surrender the polciy before maturity,
you are going to get less than what you invested.
For example after paying 3 premiusm, if you surrender, you get back 35% only.
You loose 65% of premium given in guarantee plan.
Alpha plan on the other hand is a Do It Yourself Plan. Where such obligations do not exist.
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Quick glance between Guarantee plan & ALPHA plan
Both are same except for last Lump-Sum payment.
They say….. Never mix Insurance with Investment, ALPHA PLAN is the solution for you !
2. Alpha Plan FAQ
- This is a DO-IT-Yourself model.
- You transfer the funds to your own Demat account (SIP)
- We Sebi rgistred Advisors handhold you in allocating this capital to appropriate assets.
- At regular intervals, Withdrawal is made from the account. (SWP)
Sounds easy at first however, it gets complex as portfolio builds up.
As the corpus grows, the anxiety to manage that heavy capital, the researching, the time required to monitor this account will overwhelm you.
Which is why, a professional can guide you on time and save you from blunders.
Yes, for instance, an IRR of 9% could result in a 2 crore payout.
Thus For 4 crore, you DO NOT need an IRR of 18%.
The beauty of compounding is such that,
With an IRR of just 11.5% ; the lumpsum corpus accumulates into 5 crore.
The Alpha plan is a mix of SIP and SWP.
This alpha strategy is managed by you; in your own broker demat account.
The moneydhan team, we will give you timely updates on how to re-balance the assets so as to attain better returns.
Since the strategy is market linked, The outcome depends on returns from the assets we choose to invest.
Assets like Gold, shares, Fixed Income strategies etc…
While we hope to earn higher returns in comparison to the Guarantee plan, we could under-perfom it as well.
There is no guarantee.
This plan works on a optimistic assumption,based of historic proof that,
we would likely earn better returns since we are volunteering to take higher risk than a guarantee plan. Gold is a time tested asset which proves our hypothesis.
_________ How Alpha Plan works?
A market linked scheme where the amount you invest is allocated to a set of assets which could be Gold ETF, Mutual Funds, Direct Shares, or even Fixed Income Assets.
Payout:
Market-linked, varying based on the rate of return generated.
Examples of Payouts:► Cash flow of 79k annually Plus, An IRR of 9% could provide a rupees 2 crore payout.
► Cash flow of 79k annually plus, An IRR of 11.5% could yield a payout of rupees 5 crore
Considerations:► Market-linked returns.
► Requires active management and monitoring.
_________ Returns?
► Unlike the Guarantee Plan, the Alpha Plan doesn’t provide a fixed payout.
► Instead, the returns depend on the performance of the underlying investments.
► If the market performs well, your returns may be higher; conversely, poor market performance could lead to lower returns.
_________ Inflation-Adjusted Alpha Returns:
► The focus of the Alpha Plan is on generating inflation-adjusted returns.
► Inflation erodes the purchasing power of money over time, so it’s crucial to aim for returns that outpace inflation.
► Allows flexibility in investment choices (Gold ETFs, Mutual Funds, Direct Shares, Fixed Income Assets).
_________ Risk and Reward:
► Keep in mind that market-linked plans come with inherent risks.
► While the potential for higher returns exists, there’s also the risk of market volatility.
► Assess your risk tolerance and investment horizon before choosing the Alpha Plan.
_________Professional Management:
► The Alpha Plan is managed by experts who actively monitor the portfolio.
► They make investment decisions based on market trends, economic conditions, and asset allocation strategies.
_________Decision Criteria:
► Consider your financial goals, risk tolerance, and investment horizon.
► Evaluate whether fixed payouts or market-linked returns align better with your needs.
Contact us for more information
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Things common between
Guarantee plan & ALPHA plan
Remember, while they share some similarities,
their key differences lie in the nature of payouts and risk exposure.
Feel free to ask if you need further clarification! 🙂
1 Investment Purpose:
- Both plans are designed to provide financial security and income during retirement or specific life stages.
2 Payouts:
- Both plans offer regular payouts to the investor.
- The Guarantee Plan provides fixed payouts (₹48 lakh rupees).
- The Alpha Plan’s payouts are market-linked and vary based on the rate of return generated.
3 Risk Management:
- Both plans address risk:
- Guarantee Plan: Provides assured income with a fixed return.
- Alpha Plan: Focuses on long-term growth potential but involves market risk.
4 Professional Guidance:
Both plans involve advice from professionals:
- Guarantee Plan: Offered by an IRDA-approved third-party insurer.
- Alpha Plan: Advised by MoneyDhan (SEBI-registered Investment Advisor).
Both Plans provide Annual payouts of 79,000 for 4 decades.
Both plans Pay LumpSUM amount end of the tenure.
Both plans require 12 years of commitment from you.
Both plans are Online and funds remain safe.
1. Investment Details
- Mr. Sharma invests ₹2 lakhs annually
for 12 years, totaling ₹24 lakhs. - He also chooses to receive a yearly payout of ₹79,000.
2. Payout Period
- Mr. Sharma withdraws ₹79,000 annually
for the next 39 years, until he reaches
the age of 70. - The total payout over 39 years amounts to ₹30,81,000.
3. Exit Strategy
- At age 70, Mr. Sharma decides to exit his investment and withdraws the remaining balance for retirement expenses.
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Difference between
Guarantee plan & ALPHA plan
Aspect | Guarantee Plan | Alpha Plan (Market-Linked) |
Payout Amount | Fixed payout of ₹48 lakhs | Varies based on market performance |
Return | Internal Rate of Return (IRR) at 5.8% | Linked to underlying investments |
Flexibility | Limited flexibility | Allows allocation across asset classes |
Inflation-Adjusted | Not explicitly focused on inflation | Aims for inflation-adjusted returns |
Risk and Reward | Lower risk, predictable returns | Higher risk, potential for better returns |
Professional Management | Standard management by insurer | Managed by experts |
Transparency | Clear terms and conditions | Periodic statements on performance |
Fees | One-time fee of ₹5,000 plus GST | Annual fee of ₹5,000 plus GST |
