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 →Category: Retirement
This is the archive of all our articles related to retirement planning
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 âback of the envelopeâ 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 âGulfâ 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 Avinashâs 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…
Continue reading →EPF 75% Withdrawal (1 month) is in addition to 100% Withdrawal (2 months)
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 →My father will be retiring with 40 lakhs how should he invest?
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 →Should I Make More Money or Spend Less?
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…
Continue reading →Higher EPS Pension: Can EPFO pay Higher Pensions or will it go bust?
Almost every EPF member who was part of the EPFO before Sep 1st 2014 has one or all these questions on their minds:Â Will I get higher EPS pension? Am I eligible for it if I am already retired? How much will my EPS pension increase? I can answer, the “am I eligible” question accurately (see…
Continue reading →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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