LIC Pension Plan (Jeevan Akshay) Annuity Rates Applicable from Feb 2024

LIC’s Jeevan Akshay – VII (UIN – 512N337V05) is an Immediate Annuity plan. You can purchase a pension (annuity) by paying a lump sum. The annuity rates applicable from Feb 2024 are listed in this article. According to LIC’s online purchase portal, the rates are the same as last year. Additional resources Use this annuity…

Continue reading →

The pitfalls of conventional retirement planning calculations

SEBI-registered flat fee-only advisor Swapnil Kendhe explains the pitfalls of conventional retirement planning calculations. About the author: Swapnil is a SEBI Registered Investment Advisor and is one of the sought-after advisors on the freefincal fee-only financial planners’ list. You can learn more about him and his service via his website, Vivektaru. His story: Becoming a competent & capable financial advisor:…

Continue reading →

What return should I assume when planning for retirement?

A retirement planning calculation is defined by its inputs and assumptions. This article discusses what portfolio return we should assume while planning for retirement. A return has little meaning as it has to be benchmarked to inflation. Also, we should not forget to factor in taxes. Another common mistake investors make while planning is using…

Continue reading →

Should EPF and gratuity be included as debt while calculating asset allocation?

A reader writes, “I am a subscriber to the freefincal newsletter. They have been very insightful. Portfolio rebalancing is very easy to understand but equally difficult to implement, it needs a lion’s heart to move from equity to debt. I have one question about what can be treated as debt”. “I have been investing in…

Continue reading →

Can I create a custom retirement bucket strategy using the freefincal robo advisory tool?

A reader says, “You have repeatedly demonstrated how to deploy a retirement corpus into different buckets using the freefincal robo advisory tool. In all these examples, you assume the retiree will have or should have enough money in a safe income bucket to handle inflation-indexed expenses for the first 15 years of retirement. I find…

Continue reading →

Are you ready for the great Indian retirement transformation?

The number of equity investors (stocks + mutual funds) in the last 5-7 years has increased dramatically. Most of these investors are young and have much to learn about market risk vs reward. Meanwhile, there is a silent transformation underway. More and more Indians are retiring in their 50s with higher and higher capital market-linked…

Continue reading →

Why the old pension scheme is unsustainable and the NPS essential

Many state and central government employees are against the national pension scheme (NPS) and want to restore the old pension scheme. Some state governments have also reverted to the old pension scheme. Unfortunately, this is financially unsustainable. Take, for instance, the DA announcement on Sept 28th 2022. “The additional financial implications on account of this…

Continue reading →