This is the archive of all our articles related to retirement planning
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 →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 →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 →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 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 →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 →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 →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 →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 →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 →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 →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 →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 →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…
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