PM Vaya Vandana Yojana (2020) is now open: Key Features
These are the key features of the Pradhan Mantri Vaya Vandana Yojana (Modified- 2020) Scheme that launches today, May 26th 2020.
Continue reading →Category: Retirement
This is the archive of all our articles related to retirement planning
Where should senior citizens invest in 2020?
Falling interest rates and “risky” mutual funds have spooked senior citizens and their self-appointed advisors – their children. As always, wrong questions like “should I invest in “7.75% RBI bonds?”, “Should I buy PM Vaya Vandana Yojana?” are doing the rounds. A look at how senior citizens should invest in 2020.
Continue reading →How falling interest rates and lower equity returns can affect a retirement plan
With the repo rate at its lowest, fixed-income investment rates which were already heading south over the last few years are likely to stay there and move down further in future. Equity returns have been consistently heading lower and lower too. This can destroy all financial plans especially retirement which does not come with a…
Continue reading →Crash destroyed my 12 year equity MF gains but this is time to invest more!
Last week I had reported that the annualized return (XIRR) of all my equity MF transactions tagged to retirement planning goal (or financial freedom) dropped from 11.6% in Dec 2019 to 2.75% after the crash. Some readers were either disheartened about this or twisted the result to point out equity investing is risky. In this…
Continue reading →NPS pandemic relief inferior to EPF’s unconditional withdrawal
The NPS has responded to the lockdown by merely updating its list of critical illnesses eligible for partial withdrawal highlighting the superiority of EPF
Continue reading →Should I withdraw from EPF and invest in equity now?
Should you take advantage of EPF advance announced in view of the lockdown and shift it to equity? A look at who should consider this.
Continue reading →Creating a retirement income plan for 27-year old Amar
Amar is 27 and salaried and hopes to retire by 58. Here is how he can plan for financial freedom in retirement. We shall consider how Amar can derive an inflation-protected income and be financially free after retirement.
Continue reading →Delay in EPF interest payment: Is there a loss to subscribers?
Will the delay in EPF interest payment for 2018-2019 result in a loss to subscribers? Will it affect compounding? We show that it does with some simple examples.
Continue reading →Can we avoid equity and use EPF plus PPF alone for retirement planning?
Why take so much risk in the stock market if returns are not guaranteed and can be low even after a long time? Why not use EPF plus PPF alone for retirement planning? Let us find out with examples.
Continue reading →Fixed Income Investment Options For Accumulating Retirement Corpus
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…
Continue reading →Do not make these mistakes while planning your retirement!!
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…
Continue reading →Creating the “ideal” retirement plan with income flooring!
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…
Continue reading →The 4% retirement rule is wrong! Do not retire early in India (or US) based on that!
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…
Continue reading →Plan your retirement step by step with these five videos!
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 →Higher EPF contribution on basic + allowances: Calculate increase in EPF corpus!
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…
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