This is the archive of all our articles related to retirement planning
A look at investment options for Indian Senior citizens, taking into consideration, tax, liquidity, capital preservation and ability to generate an increasing pension. This is a dangerous topic to broach! Before retirement, volatility is a friend and inflation a mandatory benchmark for a portfolio return to surpass. After retirement, volatility can either be a friend…
Continue reading →After reading well-spun yarn like ‘Rich Dad, Poor Dad’, many start talking about the importance of financial independence and passive income. There is no free lunch in the universe and there is no such thing called ‘passive’ income. A look at some well-known passive income ‘streams’ and what it takes to make them count. Income…
Continue reading →A look at ‘how much’ or ‘what is the corpus required for early retirement in India?’. I had earlier written a detailed post on this subject and the common misconceptions youngsters seeking financial freedom form after reading blogs like ERE and MMM. The central message of that post was, early retirement is possible, but one…
Continue reading →So many people have told me, one should assume that expenses will decrease after retirement due to a change in lifestyle, that I am now convinced that it is a cognitive response to avoid pain. The pain associated with staring at the results of a retirement calculation made with meaningful inputs. It is abject cluelessness when a…
Continue reading →Nearly three years ago, I was introduced to an interesting idea in goal-based investing by Chenthil Iyer, Horus financials. You invest a monthly sum of X in a single portfolio for all financial goals. The portfolio is allowed to grow and when the time for each goal arrives, the necessary sum is withdrawn. The final…
Continue reading →Should a subscriber be given the option to make partial withdrawals from a pension plan? The EPFO always allowed it. That is how mom and dad funded my education! Which, many argue is the main reason why retirees do not have much of a corpus to speak of! Now the pension fund regulatory and development…
Continue reading →A newspaper knows how to get your attention! The economic times carried an article yesterday titled, “EPFO may have ruined your retirement plans. Here’s how”. For its standards, the article makes the sensible conclusion that young people should invest enough in equity. The subject of the article is the following: EPFO will now invest 5%…
Continue reading →Use this sheet to generate a schedule of future EPF and EPS contributions. It uses the new salary threshold of Rs. 15,000 and include the three ways in which the contributions are computed if the basic salary is above the threshold. Pratheek John suggested this would be more useful than the EPF corpus calculator published…
Continue reading →Here is a simple EPF corpus calculator derived out of the retirement calculator sheets. The corpus calculation is the same as any SIP calculator. Just that we need to factor in increasing contributions due to a salary increase and the correct total EPF contribution from salary. The formula used for total contribution (employee+employer) has been…
Continue reading →Here is how people react when they use a retirement calculator for the first time. Fear! Most online calculators do not allow you to increase the investment amount each year. So I made one for myself and punched in the numbers. The results scared the living daylights out of me. I sent the sheet to Subra…
Continue reading →Freefincal has its origins in retirement calculators. For a long while, all I did was to make different variations of retirement sheets, input my numbers and stare at the results. Soon I went on to make different inflation-protected income generators The idea here is to divide the retirement corpus into different buckets. Some buckets are fixed…
Continue reading →If you have used a retirement calculator, you will know exactly what the title refers to! If you have not used a retirement calculator before, you are missing out on a wonderful opportunity to get all stressed up! Freefincal has its origins in retirement calculators. I have a wide range of sheets, the most popular of…
Continue reading →The sooner you retire, lower the retirement corpus necessary for financial freedom!* * terms and conditions apply! Let us consider this counterintuitive aspect of retirement calculators in this post, which stems from Sudhindra Aithal’s comment on this topic in response to the low-stress retirement calculator. Let us consider a 30-year-old, Dagwood Bumstead who wishes to…
Continue reading →An SWP or a systematic withdrawal plan is the lesser-known cousin of the SIP. In an SWP, an investor would receive a specific sum at periodic intervals (monthly, quarterly etc.) from a lump sum invested in a mutual fund. Here is an SWP calculator with a step-up option. Although I am not a fan of the…
Continue reading →Track the monthly growth of your retirement corpus with this Excel sheet. The user will have to first use the retirement calculator. The inputs of this sheet are used for tracking the corpus each month. The monthly investment made in equity (stocks or mf) taxable debt tax-free debt any other instrument should be entered by…
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