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…

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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…

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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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EPS Pension Calculator 2019 (Revised): How much will my EPS Pension increase?

Find out how much your EPS pension will increase with this Excel calculator if you contribute 8.33% of your full salary (basic +DA) instead of Rs. 1250 per month which is 8.33% of Rs. 15,000 the current salary ceiling mandated by the EPFO. Last week, a 1200%  hike in pension for Mr. Praveen Kohli following an October…

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Do not increase EPS Contributions for higher Pension! It may mess up your retirement!

The employee pension scheme (EPS) is a component of the employee provident fund that provides a pension to its subscribers. Yesterday, news about how Mr. Praveen Kohli got a 1200% hike in pension created a stir. This was because, in October 2016, the Supreme Court directed the EPFO to increase the pension of 12 petitioners as…

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Why have we not seen a retirement crisis in India?

In this post, I discuss reader Abhay Deol’s question: As anyone who has played with a retirement calculator knows, the corpus required for the retirement portfolio is huge. And from all accounts, most Indians are not prepared for it or even realize the huge amount required. What I’m curious about though is why hasn’t this crisis played…

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