Retirement is often compared to a long vacation in Las Vegas: the aim is to enjoy it to the fullest without running out of money. Elevated inflation rates, low real returns from debt investments, and increasing life expectancy – all heighten the risk of underfunded retirements. Therefore it is crucial to engage in retirement planning and start investing for <keyword id="112023" type="General" weightage="20" keywordseo="wealth-creation" source="Orion">wealth creation</keyword> as early as possible. Here is a detailed guide to help you navigate this process: <cmsannotation type="cmsannotation" annotationid="Understanding the dynamics" comment="subhead" text="Understanding the dynamics">Understanding the dynamics</cmsannotation> In India, economic factors like inflation rates, interest rates, and the cost of living significantly impact retirement planning and wealth creation. Inflation erodes the value of savings, while interest rates influence investment returns. For example, with an annual inflation rate of 5%, Rs. 1000 saved today will be worth only Rs. 950 in real terms next year. As deposit interest rates have been falling over the long term, the fixed deposit (FD) rates you see today might not be available when you retire in 20-25 years. Additionally, interest income is taxable. The rising cost of living also directly influences post-retirement expenses. If the cost of living increases by 3%, monthly expenses of Rs. 30,000 today would escalate to Rs. 30,900 next year. Understanding these dynamics is essential for effective retirement planning. <cmsannotation type="cmsannotation" annotationid="Identifying your needs" comment="subhead" text="Identifying your needs">Identifying your needs</cmsannotation> Determining retirement needs requires careful calculation. A common rule of thumb suggests that <keyword id="415826" type="General" weightage="20" keywordseo="retirement-savings" source="Orion">retirement savings</keyword> should ideally replace 70-80% of pre-retirement income. For example, if your current annual income is Rs. 8 lakhs, then you should aim for Rs. 5,60,000 - Rs. 6,40,000 annually in retirement. Now consider the desired retirement age and expected lifespan. For instance, retiring at 60 and living until 85, necessitates planning for 25 years of retirement expenses. Don't forget to account for inflation. Typically, inflation is 5-6%, meaning your retirement wealth has to grow faster than this rate, ideally more than 6% after paying taxes. Therefore, your investments must offer high return potential with a low margin of error. <cmsannotation type="cmsannotation" annotationid="Exploring your options" comment="subhead" text="Exploring your options">Exploring your options</cmsannotation> Traditional retirement savings options include the Employee Provident Fund (EPF), Public Provident Fund (PPF), and the National Pension System (NPS). Other investment avenues like stocks and real estate are also popular. However, mutual funds emerge as a versatile option among these. Mutual funds offer professionally managed portfolios catering to diverse risk appetites, unlike the rigidity of EPF and PPF. <cmsannotation type="cmsannotation" annotationid="Tailoring investment strategies" comment="subhead" text="Tailoring investment strategies">Tailoring investment strategies</cmsannotation> Tailoring investment strategies to varying income levels and risk appetites is crucial for financial success. For individuals with modest incomes, starting <keyword id="176782" type="General" weightage="20" keywordseo="systematic-investment-plans" source="Orion">systematic investment plans</keyword> (SIPs) in mutual funds with as little as Rs. 500 monthly can lead to steady retirement wealth growth. Long-term investment strategies ensure financial resilience, regardless of income level or risk tolerance. If you want to adopt a hands-free approach, stick to mutual funds that come with various diversified and long-term options such as equities, debt, hybrid, and multi-asset and even retirement-friendly portfolios. <cmsannotation type="cmsannotation" annotationid="Food for thought" comment="subhead" text="Food for thought">Food for thought</cmsannotation> Many Indians prioritise home buying and children's education early in life, often delaying retirement planning until their forties. Ideally, retirement planning should start in the mid-twenties. Avoid common mistakes such as neglecting inflation, underestimating longevity, or taking on excessive risk. A smart approach is to integrate mutual funds into systematic investment plans (SIPs). This way, you can look forward to a peaceful retirement and enjoy the financial freedom that you deserve. Disclaimer: The article is authored by Sangeeta Parag Mehta, Mutual Fund Distributor. The opinions expressed are those of the author and do not necessarily reflect the views of Business Insider India. Do your own research (DYOR) before deciding to invest in any financial asset class. This article is published by the Insider Studios team. You can get in touch with them on <a href="mailto:insiderstudios@businessinsider.in">insiderstudios@businessinsider.in</a>.

A comprehensive guide to retirement planning in India: Secure your future

<ul><li>Sluggish growth in deposits is a major concern for banks, as higher rates are likely to impact margins in the near term. </li><li>Kotak’s analysts have built in a negative thesis on the NIM outlook in the medium term. </li><li>Race to hike term-deposit rates by public sector banks likely to impact return on assets and delay any re-rating. </li></ul>Financialisation of household savings is expected to have a far-reaching impact on the banking sector. So far, banks have enjoyed the benefits of low-cost deposits as Indians kept their money with banks in the form of deposits. But with the equity cult going mainstream, banks are in for a choppy ride. Bank stocks have been rallying for the last several weeks, as credit growth is picking up pace and profitability has been robust. But there’s a problem: the pace of credit growth is way slower than deposit growth. This essentially means that Indians are either drawing money from banks to spend or are redeploying funds to other asset classes. What this essentially implies is that banks will have to increase deposit rates even further if they wish to convince depositors to park their monies with them. This is a risk that institutional investors are now worried about as higher deposit rates could impact the net interest margins of lenders. In a bid to attract stable longer-term deposits, many banks are offering interest rates of 7% even. Many analysts believe that this may trigger a competition between banks to attract more deposits. According to <keyword id="152996" type="General" weightage="50" keywordseo="kotak-institutional-equities" source="Orion">Kotak Institutional Equities</keyword>, “It is perhaps reasonable to conclude that depositors are drawing down on their excess savings or changing the nature of their savings.” And higher interest rates are unlikely to change this behaviour as the historical relationship between interest rates and growth is not strong, claim analysts. According to a report by Kotak Institutional Equities, banks have increased their interest rates on deposits and are currently comfortable, as their loans are re-pricing higher. But it has a more open ended approach to NIMs (net interest margins). Kotak’s analysts have built in a negative thesis on the NIM outlook in the medium term, but they say that several variables can change this. So what is making analysts nervous? Well it isn’t just <keyword id="6357420" type="General" weightage="100" keywordseo="mercedes" source="Orion">Mercedes</keyword> that is facing competition from systematic investment plans of retail investors through which retail investors are putting chunks of their savings into equity-oriented mutual funds. <keyword id="6409502" type="General" weightage="20" keywordseo="bank-deposits" source="Orion">Bank deposits</keyword> are no longer as popular with Indians as they used to be. After being flush with surplus savings that Indians could not spend during the pandemic, deposit growth is lagging loan growth. Recent data shows that while deposits are growing at roughly 10% year-on-year, there is deceleration in current and savings account deposit growth. In contrast credit growth stands at 17%. What is, however, growing fast are the term deposit growth, which are more expensive as banks have to pay a higher interest rate on these than the money that sits in savings accounts and current accounts. Worryingly, deposits are decelerating in the metro and urban markets. According to Kotak, deposit growth could recover from current levels, but the drivers are still not that clear. In the interim, expect a reasonably competitive environment where banks continuously re-price their deposits higher. The best source of term deposits for banks are the metro markets. According to Kotak, the metropolitan market accounts for 60% of the overall term deposit book, and growth has touched 12% annually, which is the best in recent years. The breadth of recovery is not uniform after the pandemic. While Western India (which accounts for 30% of term deposits) has grown at the fastest pace, the South is weak on term deposits as well as CASA. When loans are being deployed faster than deposits are coming in, the ratio of loans to deposits goes for a toss. Currently, the LDR (loan to deposit ratio) for public sector banks is at 68% while it is at 88% for private sector banks. Public sector banks are already in a race to lower lending rates and hike deposit rates to corner more market share from private banks. However, this will impact their spreads – the difference between the interest rates they get from borrowers and what they pay to depositors – over the near-term. According to Jefferies, “Despite having lower loan to deposit ratio, PSU banks have materially raised term deposit rates in the 2 year bucket. We believe this reflects their softer deposit growth (8% YoY vs. 9% for sector and 13% for private banks) and potentially their view that liquidity may stay tighter for some time.” While capitalisation and asset quality of public sector banks have improved, their return on assets continues to be between 0.6-0.8%, but intense competition to attract deposits could impact returns of public sector banks. Shares of most public sector banks have rallied since the September quarter numbers as their performance was solid. However, going forward higher costs could eat into their profitability, thereby, preventing a re-rating. Jefferies further says: “Select banks are offering 7% interest rates for 2yr deposit rates. We believe that PNB's strategy of offering higher term deposit rates and lower lending rates could be a drag on spreads.” SEE ALSO <a href="https://www.businessinsider.in/business/corporates/news/gland-pharma-announces-acquisition-of-europes-cenexi-group-for-120-mn-shares-fall-4-37/articleshow/95875718.cms">Gland Pharma announces acquisition of Europe’s Cenexi Group for €120 mn, shares fall 4.37%</a> <a href="https://www.businessinsider.in/finance/news/india-on-course-to-become-worlds-second-largest-economy-by-2050-says-gautam-adani/articleshow/95622223.cms">India on course to become world’s second largest economy by 2050, says Gautam Adani</a>

It’s not just Mercedes, even bank deposits are competing with equities

Debt MFs catch investor fancy as their returns go up to 23%

The suitability of an investment option depends on the reasons why you invest and what you expect from the investment. There is no single investment plan that is always superior over the others. Hence you must choose the right investment options through a careful study of the options in front of you. Here we compare between FD (<keyword id="74427" type="PERSON" weightage="20" keywordseo="fixed-deposit">Fixed Deposit</keyword>) and SIP (<keyword id="6359303" type="DEFINITION" weightage="20" keywordseo="systematic-investment-plan">Systematic Investment Plan</keyword>) to suggest which is better as a long term investment vehicle. (FD) Fixed Deposit Both banks and non-banking financial firms offer fixed deposit plans. Under this option, the investor puts in a fixed amount of money over a fixed period of time. FD is considered one of the safest investment option you will find in the market. It assures high returns on the invested amount. There are different kinds of fixed deposits to choose from. The rates of interest and the terms and conditions governing them vary from one plan to another. Fixed deposits can meet short term or long term goals and the best thing about them is the fixed return they assure the investor. The amount to be invested and the duration of the investment can be conveniently chosen by the investor. It is also possible to get a loan on your fixed deposit. Premature closing of the FD is also possible. Fixed deposits over 5 years provide various tax benefits to the investor. (SIP) Systematic Investment Plan A systematic investment plan lets the investor invest a fixed sum of money on a regular basis in a <keyword id="6354820" type="DEFINITION" weightage="20" keywordseo="mutual-fund">mutual fund</keyword>s scheme. Generally in an SIP scheme, the money is invested in an equity mutual fund scheme. If the investor is new to the concept of mutual funds, SIP is one of the best suited investment option. SIP creates the habit of making timely investments. SIP also lets you accumulate a lot of money over certain time period. SIP assures better returns than FD. Systematic investment plan offers several advantages. The investment can be customized as per the needs of the investor. The investor can also track the performance of the investment. SIP investment also carries various tax benefits. It is also possible to withdraw easily and invest money at any time the investor wants. Taxes you will incur on long term capital gains Long term capital gains refer to an investment that is made for a period more than year. The gains resulting from the amount invested in an equity based scheme for more than a year is called as long term capital gains. Long term capital gains is applicable only on mutual funds that feature more than 65% equity investments. Hence an investor will have to pay 10% tax on long term capital gains if the gains exceed more than one lakh per year. Conclusion <keyword id="7198664" type="UNKNOWN" weightage="20" keywordseo="FD-vs-SIP">FD vs SIP</keyword> If you are a conservative investor wanting to avoid risks, FD is the right investment option. Fixed deposit also features a high degree of liquidity and guaranteed returns. SIP on the other hand does not guarantee the returns and the benefits can vary depending on the market performance. However, while talking of long term returns, an SIP is a better option if you are prepared to take the risk.

FD vs SIP : which is better for investment in long term

As investment options, FD and <keyword id="6202647" type="UNKNOWN" weightage="20" keywordseo="debt-etf">debt ETF</keyword> are these days highly popular among the investors. While FD or <keyword id="74427" type="PERSON" weightage="20" keywordseo="fixed-deposit">fixed deposit</keyword> is highly familiar to us for a few decades, the emerging concept of debt ETF has allured a lot of investors to take added interest in this investment vehicle due to its overwhelming advantages. However, if you wish to know which among these two is better for you, here we go discussing <keyword id="8423666" type="UNKNOWN" weightage="20" keywordseo="fd-vs-debt-etf">FD Vs Debt ETF</keyword> from different perspectives to enable you make the right decision while investing. Some FAQs on FD Vs Debt ETF FD or ETF – which one assures a higher rate of returns? The rate of returns in case of debt funds is 7% to 9% while FD carries only around 6% to 8% rate of returns. Do they feature dividend option? Debit funds feature dividend option while there is no such option with regard to FD. How do they compare in terms of risk? The risk is low with regard to FD while debt ETF has low to moderate levels of risk. In which investment option the liquidity is more? The liquidity is high in case of debt ETF while FD has very low levels of liquidity. What are the investment options available with them? When you invest in debt ETF, you can choose between one-time investment of SIP investment. In case of FD, there is only a single option namely lump sum investment. Can you withdraw your investment before maturity? Early withdrawal is possible in case of debit ETF while FD does not provide this convenient to the investors. In case you wish to withdraw a FD before the maturity, you will incur a penalty. Is there any investment expenditure? When you invest in debit ETF, you will incur a nominal expense ratio, while there are no management costs in case of FD investment. Some important points of comparison between <keyword id="8423667" type="UNKNOWN" weightage="20" keywordseo="debt-etf-and-fd">debt ETF and FD</keyword> Taxation Short-term gains of debt funds are taxable corresponding to the investor’s income slab. While there is an additional benefit of indexation, long-term gains on debt funds will be taxed at 20% up to 3 years or more. With regard to the returns in case of FD, the taxes will correspond to your individual tax slab. Inflation adaptability of FD and Debt ETF Inflation places a damper on your savings since there is a loss of currency value over a period of time. Debt mutual funds have the advantage of pacing with the inflation despite the low to moderate risk they carry. When you have invested in FD with 6% interest rate and the inflation rate is 5%, you will get an adjusted return of just 1%. So, we can say debt ETF deliver comparatively higher returns. Final verdict Debt funds are almost on par with the conventional FDs in terms of risk. The main goal of a debt fund is to give a steady income to the investors all through the investment horizon. Hence it is necessary that you choose the time horizon that is in line with the fund. These days, the investors are in an advantageous position as they can get to know how the amount they invested in debt ETF performs. Therefore it is easy to take advantage of the volatility of the market to build up on their invested amount. Given the scenario, debt ETFs can be deemed as a better investment option when compared to FD.

FD Vs Debt ETF: which is better for Investment

<ul><li>Building an <keyword id="163208" type="General" weightage="20" keywordseo="emergency-fund" source="Orion">emergency fund</keyword> of 6-12 months of expenses is crucial as <keyword id="6357067" type="General" weightage="20" keywordseo="layoffs" source="Orion">layoffs</keyword> become common. </li><li>Once the goal of 50% of emergency funds is achieved, one should start investing for the long term. </li><li>It is important to take health and term insurance to protect oneself against any eventuality. </li></ul>Bangalore based software engineer Soham Chatterjee, 24, started his career with a startup last year. He gets a salary of ₹50,000, and since he had to relocate and has to pay rent, he has to look closely at his expenses. Chatterjee and many others of his age, may have to deal with another grim possibility. 2023 has been in news because of layoffs and the situation in 2024 could also be similar. However, the layoffs may be more sector specific. “The likelihood of layoffs in India in 2024 is unlikely except for specific sectors being affected. Over 35,000 people have lost their <keyword id="11018" type="General" weightage="20" keywordseo="jobs" source="Orion">jobs</keyword> at Indian startups in the last two years. Job cuts might be expected to continue in the startup space into 2024 in the pursuit of profitability,” says Kartik Narayan, CEO of Staffing Firm, TeamLease Services, a staffing solutions firm. “The driving factors behind these anticipated layoffs include the need to reduce costs, the anticipation of an upcoming recession, the desire to increase profits, and the integration of AI, which is replacing some job functions,” he adds. According to a spokesperson of Adecco, a provider of human resource solutions, while some tech and <keyword id="44477" type="General" weightage="20" keywordseo="financial" source="Orion">financial</keyword> sectors may still adjust, overall expectations are much calmer. Some tech sub-sectors like venture-backed startups and non-essential financial services like wealth management might see targeted layoffs. In such a situation, it is important to have one’s financial house in order, especially for the <keyword id="4550079" type="General" weightage="20" keywordseo="genz" source="Orion">GenZ</keyword> who are most likely in their first jobs and have never seen layoffs before. Building an emergency fund As the same suggests, an emergency fund comes in handy during an emergency, like a job loss. GenZ folks would not have home loan EMIs or expenses related to kid’s education, but they would have student loans or loans on gadgets. An emergency fund will help one tide over such expenses. The thumb rule is to build an emergency fund of six months’s monthly expenses. “Before Covid we were looking at six months of your expenses as an emergency fund, now we are looking at 12 months,” says B. Srinivasan, director and founder, Shree Sidvin Investment Advisors. Even if they have taken a phone on EMI, that should be included in one’s expenses. “So the rule is to divide the salary into one third and two-thirds. One third of income should be compulsorily saved and it should go towards building an emergency fund, it should not go towards long term savings. Till 50% of the corpus is achieved, one should not do any long term investments,” says Srinivasan. Also, 50% of any incentives or bonus they might be getting should be earmarked for emergency funds. Where to park your emergency funds: One may keep the emergency funds in their savings account. However, it is recommended to park it in liquid funds for a slightly higher return. Srinivasan suggests that one keeps two months of one’s expenses in a savings bank account and post that invest it in conservative hybrid mutual funds which invests primarily in FD like instruments, with some exposure to stocks. Starting investments Financial planners generally advise that once the goal of 50% of emergency funds is achieved, one should divide the one third of income into two parts. One should go towards emergency funds and the rest should be invested. “Start mutual fund sips for your goals. Investing directly in stocks or trading is absolutely fine but always have your goals sorted with mutual funds or index funds,” says Ananth Ladha, founder, Invest Aaj for Kal, a financial planning firm. Getting insured Getting insured is also a requirement of the times. The employer would provide health insurance coverage, but that will not be there in case of a job loss. “Take term and health insurance in time. Term plan is needed only up to 60-65 years, buying a whole life policy won’t make sense in financial terms,” says Ananth Ladha. A term plan would be available at a very reasonable premium at this age. We live in uncertain times and layoffs are not going to go away. However, maintaining financial discipline is important to be prepared for a rainy day.

GenZ and finance: Layoffs to continue in 2024 – Here’s how to be financially prepared

<ul><li><keyword id="103549" type="General" weightage="20" keywordseo="elss" source="Orion">ELSS</keyword> is an open-ended equity mutual fund that invests primarily in equities and equity-related products. </li><li>ELSS funds have a lock-in period of three years, meaning that investors are not allowed to withdraw their investment before the completion of this term. </li><li>Under Section 80C, investors can claim a deduction of up to ₹1.5 lakh by investing in ELSS funds. </li></ul>If an investor decides to opt for the old tax regime, he/she can still take advantage of the various deductions available to minimise tax outgo. Section 80C, with its plethora of tax-saving investment options, remains a favourite with investors. One of the options to save tax under section 80C is ELSS (equity-linked saving scheme), which is a type of mutual fund that focuses mainly on equities and provides tax benefits to investors, making it a popular investment choice. ELSS funds have a lock-in period of three years, meaning that investors are not allowed to withdraw their investment before the completion of the term. This lock-in period is shorter than that of other tax-saving investments such as the public provident fund (PPF), national savings certificate (NSC), and fixed deposits (FDs). Under Section 80C of the Income Tax Act, investors can claim a deduction of up to ₹1.5 lakh from their taxable income by investing in ELSS funds. This deduction is one of several deductions available under Section 80C. Despite being considered high-risk investments due to their primary focus on equities, ELSS funds have the potential to provide higher returns than other tax-saving investments over the long term. Professional fund managers manage ELSS funds and base their investment decisions on market trends and analysis. “Investment in ELSS is a good option as it gives both tax benefits, as well as good return. A taxpayer saves tax on the amount of investment made. Further the return on such equity investment is better than any investment in debt like FD, bonds etc,” says Ved Jain, founder, Ved Jain Associates, a chartered accountancy firm. Though past performance is not an indication of future returns, ELSS funds as a category have given 9.64% returns over the last 5 years, and 14.58% returns over the last 10 years. Investors have two options for investing in ELSS funds: lump sum or systematic investment plan (SIP). In a lump sum investment, the entire investment amount is made at once, while in an SIP investment, a fixed amount is invested at regular intervals. SIP investments are an excellent choice for investors who want to invest in ELSS funds but do not have a large sum of money available at once. “Investors should look at ELSS as an opportunity to participate in an equity scheme. It should be looked at as an option for creating wealth in a 15-year time frame. Tax saving should be taken as incidental benefit,” says AK Narayan, CEO and founder of AK Narayan Associates, a financial planning firm. Investors can select from various ELSS funds offered by different mutual fund companies. Before investing, it is essential to conduct research and compare the different funds to ensure that they are aligned with one's investment goals and risk appetite.

ELSS Mutual Fund: A way to claim tax deduction while enjoying market-linked returns

Tax saving is a tricky subject and needs a lot of planning. By learning the intricacies in the taxation laws and studying your own situation in relation to the taxation laws will enable you save on your taxes. Here are some easy ways for the salaried employees to save on income taxes. Understand your salary slip first You must understand your salary slip well to know the ways to save on the gross tax you are liable to pay. The salary slip consists of three segments namely earnings, allowances and deductions. These sections will give enough clues on how to save on your taxes. The basic pay reflects on your earnings. Towards contributions, you might receive conveyance allowance, leave travel allowance, dearness allowance, house rent allowance and others. This section will also include deductions including income tax, professional tax and provident fund. Here are a few useful tips to plan for your taxes efficiently. How to save on taxes Income tax is levied on basic pay. Your House Rent Allowance (HRA) is tax exempted if you live in a rented house and pay the monthly rent. A fixed amount received as conveyance allowance also qualifies for tax exemption. Some employers might deduct income tax at the source. In such cases, the taxes paid already can be claimed by producing the necessary supporting documents at the end of the financial year. Also explore some options for investing in tax saving instruments. Understand Section 80C If you can understand the 80C section of the Income Tax Act thoroughly, you can hope to save on taxes and take home more salary. You are allowed to invest till an upper limit in schemes like National Savings Certificate (NSC), Equity Linked Savings Scheme (ELSS), Public Provident Fund (PPF) Bank Fixed Deposit (FD) and many other products. Do not plan for the taxes during the last minute If you will only study the tax during the last minute, it will give you very less room to save. If this happens, you will be overburdened with a need to make a sizeable investment in one time during the last minute. Small regular investments in Mutual Funds and SIPs over the entire year can help you make significant saving on taxes. Meet your financial goals through investments Investments planned in the right way not only enable you save on taxes, they also help you meet some of your cherished goals in life. It is possible to convert all your tax saving investments into ones that will bring you higher returns. For example, if you wish to buy a car, invest regularly in any ELSS. The lock in period will end in three years and after that you can withdraw this amount. Hence many tax saving instruments can help you meet your financial goals easily and effectively. Other ways to save on taxes It is possible to claim tax benefit on LTA once in every two years. To do this, you must submit the proof of travelling. Section 80D contains provisions for you to avail of tax benefits for the premiums paid towards health insurance policies. Section 80E contains provisions for tax exemptions on interest paid towards education loans.

How salaried employees can save on Income taxes

<div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/57505fa9910584e73c8c61da-977/johnmeadow.jpg" alt="john meadow LD hospitality" data-mce-source="LDV" data-mce-caption="John Meadow, President of LDV Hospitality" />LDVJohn Meadow, President of LDV Hospitality (right)</div></div></div>You are at a party and it's swelteringly hot. In fact it's one of those super-sticky hot weekends at the end of the summer when the sun is relentless and breathing makes you thirsty.Your party is in Montauk, in the Hamptons, and it's really your party - as in, you are throwing it. That means the 4,000 or so people who've assembled outside need bottle service. The music is loud and they need drinks. The sun is hot and they need them now. Of course, you've run out of buckets to put all these bottles in, and it's the first summer you've ever thrown parties at what is now your club/restaurant in Montauk.So what do you do? You go to the kids playroom inside the resort that your restaurant is in. You steal all of their sand pails - every last one of them. You fill them with water and ice so you can fill them with vodka and champagne, and then you keep your party going.Because it's your job. That's what it takes to make it to the top of New York nightlife. You've got to be creative.That's how Ashley Noor did it one summer day last year, after she and the rest of her crew at LDV Hospitality followed founder and President John Meadow on a damn-fool venture to open 10 properties - multiple American Cut Steakhouses, Scarpettas, Rec Rooms, Dolces and more - across the country in two years. This, of course, included the property at Gurney's in Montauk - a project they built out in a matter of about four months. Noor calls herself the "director of chaos." Her official title is Director of Marketing &amp; Events.<h2>'The tough times'</h2>LDV wasn't always like this. Meadow, who started out with a successful NYC bar called Local West, himself will tell you that he was an insufferable 25 year-old industry kid. After his first hit he got cocky, and opened a super glitzy Meatpacking spot called Gin Lane in 2005. His lenders - who gave him $2.5 million - insisted on 18% interest and it flopped. "I was so reckless. Ambition and entitlement from premature success," he said. "I had the time of my life, but I was fake."Now, at 36, Meadow is not fake. He wears what he wants (usually something tailored and maybe suspenders). He still talks like he's in the Rat Pack even though he was raised by hippies, and he still swears by his mentor, a Korean immigrant who went from driving taxis to owning Lenwich, a 19-unit New York sandwich shop."I learned more from that guy than my Cornell professors," said Meadow, a graduate of Cornell's hospitality school. "I went to fancy boarding school. Academia is wonderful, but I learned more from that immigrant turned taxi driver, hustler, big shot. That's my teacher and he's supportive."But of course, Meadow and his teacher travel in very different circles. He got out of the "tough times" or "the gutter" of debt (as he calls it) by opening a 2,700 square foot fine dining monster hit when everything was going to hell in 2008: Scarpetta, an Italian restaurant in the Meatpacking District. "Even when I was imploding I thought I was special. I thought I was f---d, but I thought I was special," Meadow said.<div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/5750607291058424008c64f2-1200/gurneysmontauk.jpg" alt="Gurney's in Montauk, The Beach Club" data-mce-source="LDV" data-mce-caption="At Gurney's in Montauk" />LDVAt Gurney's in Montauk</div></div></div><h2>The wheel</h2>If you were in New York City during the financial crisis, you'll recall that everyone was crowded into Scarpetta eating pasta until it and they burst. Its success was the springboard for LDV's explosive growth: 30 properties in 9 years, according to Director of Hospitality Dean Tsakanikas, who has been with the company since 2008.In that time he's criss-crossed the continent opening properties from the Las Vegas to Miami, Toronto to Atlantic City. He started out as a general manager, but soon came to realize that Meadow was collecting properties that could benefit from interconnected branding."It dawned on me that more and more guests didn't realize that Scarpetta was part of the same company" as, say, NYC club No. 8, the reboot of Amy Sacco's classic Bungalow 8, or Iron Chef champion Mac Forgione's American Cut.<div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/5750622f91058436008c66d1-527/markforgione.jpg" alt="marc forgione" data-mce-source="LDV" data-mce-caption="Marc Forgione at American Cut Midtown in NYC" />LDVMarc Forgione at American Cut Midtown in NYC</div></div></div>So they decided to put it all together.Tsakanikas, for his part, knew what he wanted to do. He wanted to be the guy that knows the clients inside and out - knows where to send them, what to serve them, how much they spend and who they spend it with.That means Tsakanikas is the guy who knows which woman is Wall Street guy #5's wife, and which one is his girlfriend. He tracks his VIPs from sipping cocktails on Miami Beach to skiing in Aspen. Customers likely have soft hands and wear designer threads. They like discretion and velvet ropes. But they, like LDV, are not loud. They are not megaclub or clubstaurant people. What they do expect is top notch service and familiarity despite the fact that they've left home. Things should taste the same, cost about the same (expensive). Staff should know them. This experience is not about adventure, it's about lifestyle maintenance.LDV has a tracking system for repeat customers, and Tsakanikas is militant about it. The use the <a href="https://www.sevenrooms.com/products">Seven Rooms</a> app to track what clients eat, drink, their average spend, allergies, what to send out gratis and when to send it. It spits out monthly reports.<h2>This is what we do</h2>Meadow has a board up in his office where he pins pictures that inspire his classic-meets-slightly gritty New York in the late-1970s sensibility. Debbie Harry of Blondie was the inspiration for the look of his latest New York City opening, American Cut in Midtown.In many ways, he says, it was the easiest opening he ever did. He knows American Cut, he knows his customer, and most importantly, he knows his customer is willing to spend 25% more on a night out in that neighborhood than in American Cut's Tribeca location.<div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/575062c1910584cc008c6795-1052/americancutmidtown_final_0097.jpg" alt="american cut midtown" data-mce-source="LDV" data-mce-caption="The dining room in American Cut Midtown" />LDVThe dining room in American Cut Midtown</div></div></div>It also happens to be a perfect example of what LDV does - or what Meadow has managed to crystallize as what LDV does over the last decade. It has a lot to do with the fact that he has a relationship with eight different hotel properties."What are we as a company and how are we going forward? Hotels always need proper dining... it's the bonafide programming of big real estate. Now we are a marketing vehicle for big real estate and it's in those deals that we get the best economic terms," said Meadow.Those terms, in part, stand to net LDV $100 million in revenue in 2016, compared to $85 million in 2015, according to the company.What those terms won't get you is a lot of love from the food world. Die hards will tell you it's inauthentic. They will tell you that hotel food is soulless, and that expensive entrees are an insult to the proletariat. They'll tell you expansion is extinction and that LDV is "the man".Meadow calls this the "trend of 2016, the eater.com ride-or-die hipster funky chefs and their 15-seat restaurants." He knows about that. But LDV doesn't do that. Meadow finally knows what they do."I've always had a vision for my chaos. Now I'm finding finally for the first time a business strategy and I'm ready to define a 5-year plan, 10 years into this game." <div class="margin-top"> <h3>NOW WATCH: <a href="http://www.businessinsider.com/alibaba-jack-mas-secrets-to-success-2016-5">REVEALED: Alibaba founder Jack Ma's secrets to success</a></h3> <div> <div> <script src="http://player.ooyala.com/v3/6e12e8b3387a44daacfb73afba25a76e"></script> <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="htYmNtMzE6dD7eBpI_wAtO8n2X-00eMe" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div> <script> if (typeof RunFunctions === 'undefined') { var RunFunctions = []; } RunFunctions.push(function() { var ooyalapopvideo = OO.Player.create('ooyalaplayer_popvideo', 'htYmNtMzE6dD7eBpI_wAtO8n2X-00eMe',{ autoplay: 'false' }); }); </script> <noscript><div>Please enable Javascript to watch this video</div></noscript></div> </div> <script>(function() { function createPlayer() { OO.ready(function() { RunFunctions.forEach(function(ooyalaFunction) { ooyalaFunction(); }); RunFunctions = [];}); } createPlayer(); }()); </script> </div>

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