Everyone agrees that a good amount of equity exposure is necessary for building a retirement corpus capable of handling inflation when income from employment stops. This can be done via some mix of equity mutual funds and direct equity. What about the fixed income or debt part of the portfolio? Let us consider the investment…
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A lot of people start contemplating retirement because a ‘back of the envelope’ calculation shows them that they now have created a corpus high enough to meet their annual expenses. Fed up of the high-stress job, fed up of grinding away alone in ‘Gulf’ with family back in India, having built a home, children now…
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Let us think about it for a moment: What is the ideal retirement plan? One that guarantees income for our lifetime, one that helps tackle inflation and unexpected expenses after retirement. All this with as low a corpus as possible! Yes, that does sound too good to be true. However, we can get close to…
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Avinash Luthria, SEBI Registered fee-only investment advisor explains why one should not retire early in India (or US or elsewhere) based on the so-called 4% retirement rule (explained below). I respect Avinash’s approach to investing especially his realistic views on risk and reward. Avinash Luthria is Founder, Fee-Only Financial Planner & SEBI Registered Investment Adviser…
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Here are five videos to guide a newbie step by step on how to plan their retirement. Please share these with your colleague/friend who has not yet taken their retirement seriously They can understand the importance of retirement planning, how to compute amount necessary for investment, how much to invest and where to invest for…
Continue reading →We discuss how to create a retirement income plan with 27-year old Amar as a case study. We shall consider asset allocation for each year of investment before and after investment and how Amar can derive an inflation-protected income and be financially free after retirement. This is step 11 of Re-assemble, a series on the basics…
Continue reading →The supreme court recently ruled that allowances that are ordinarily paid to all employes should be considered for deciding the EPF contribution and not just the basic pay as usually done. This means normal allowances like house rent, dearness transport, fall under the definition of “basic wages”. A look at how much your EPF corpus…
Continue reading →In a circular issued today, Dec. 19th, the EPFO allowed members who have not been employed for at least one month to withdraw up to 75% of their provident corpus. The EPFO circular clearly states that after two months of continuous unemployment 100% of the corpus can be withdrawn. There has been some confusion in this…
Continue reading →More and more young earners are asking questions such as “My father will be retiring with 40 lakhs how should he invest?” Let us discuss strategies of retirement planning for senior citizens. Here is how your parents can invest their nest egg after retirement. As an example, I consider a question asked by a reader…
Continue reading →If you had to choose between making more money and spending less, what would you choose? “Wait a minute, why should I choose?”, you ask? Good question! Let us find out if you have to make that choice (or do both) ! Now, I hate thumb rules because most of the popular ones are flawed…
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