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"How much should I invest/save for retirement?" is a pretty common question (try googling it). This question, like most other, is often asked with the expectation of a nice and comfortable answer. "Be sure to save 10-15% of what you make, for retirement" is an equally common answer. Unfortunately, nice and comforting as it may sound, such answers are often far from the truth.

Retirement planning is complicated because the corpus accumulated is not meant to be spent in one-shot like all other goals. The corpus must not only provide regular income to meet expenses, it must also grow at a rate that at least matches inflation and must be large enough to outlive the individual. This is a tough ask. Any retirement calculation is subject to several assumptions. If these assumptions are not realistic (for example planning with inflation of 6% and equity return of 15%) then results of the calculation would appear comforting even as reality prepares a bitter pill.

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For a person who has been investing in equity (directly/indirectly) for several years, the question, "how much equity exposure should I have after retirement?" is not so hard to answer. However, that is not the case for most 50+ investors heading towards retirement. They would have little or no experience with equity or any market-related product. The retirement withdrawal rate or the initial retirement withdrawal rate, to be exact gives an approximate idea of the quantum of risk a retiree can take after retirement.

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'Can I invest in such a way that my capital is protected?' is a question that many ask. Especially those who are retired, or about to retire. The answer is contextual. The term capital protection can take two meanings depending on how we use it. In this post, I discuss the disadvantages of capital protection, when one should do it and what are the alternatives.

 First A request: Please review You Can be Rich Too With Goal-based investing at Amazon or Flipkart. It will help us become better writers. Here is the first review at Amazon.in 🙂 If you have not got it yet, order one today!

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A catch-22 situation is one from which there are no easy solutions. Any move we make will be associated with significant disadvantages and risk. Such situations are often found in retirement planning. Whether you are a middle-aged employee heading towards retirement or a young earner trying to manage their parents' retirement fund, understanding when a catch-22 can arise is important.

First some news: my new book with Subra(money.com), You can be rich with goal-based investing is now available at Flipkart for Rs. 359/- only! Pre-order now!

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Given a lump sum, how do we invest it in order to create a reliable income stream that is risk-free and has the ability to keep pace with inflation?

This is the most crucial question that concerns every person who is retired, nearing retirement, or planning for someone else’s retirement (a client or a parent perhaps).  Well, at least it ought to be!

The answer concerns everyone since we all have to answer this question at some point in our life.

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