In this article, we look at how LIC’s immediate annuity plan Jeevan Akshay’s annuity rates have over the last 20 years. This study was triggered while preparing a retirement planning illustration based on laddered annuities. Annuity rates tend to follow interest rates and inflation movements over the long term*. The first version of Jeevan Akshay…

In this article, we list the annuity rates of LIC’s Jeevan Akshay VII (Plan No. 857, UIN : 512N337V02) launched in Feb 2022. While preparing a retirement planning illustration based on laddered annuities we wanted to find the latest Jeevan Akshay VII annuity rates. Unfortunately, neither the sales brochure nor the policy document mentions this!…

A reader asks in response to our recent article – How to beat inflation after retirement along with guaranteed pension – “Is it wise to retire early in my 40s if my portfolio is sufficient?” There is more to retirement planning than determining if the corpus is large enough to handle inflation! Financial independence and therefore…

Getting a guaranteed pension after retirement and beating inflation after retirement has traditionally been two extreme solutions in retirement planning. In this article, we explain how these solutions can be combined to build a robust and nearly fool-proof retirement plan. In the former, we talk about buying an annuity from life insurers for a guaranteed…

A reader posed an interesting question: Suppose I wish to hold my entire retirement corpus as cash without investing it or saving it or buying pension or monthly income products, what will be the corpus required?  At a first glance, this may seem like a silly question. Yes, it is certainly impractical, but working this out…

A reader writes, “I have now been reading your articles on the importance of asset allocation for a few months now. The impact of inflation is scary! I have no equity holdings in my portfolio and have never planned for retirement in a systematic way. Is there any hope for me or is it too…

A reader wants to know why a retiree needs to complicate life with multiple retirement buckets when all he needs is a single portfolio with equity and debt after retirement which is much easier to manage. About 10 years ago, I would have probably thought the same. Age and experience change perspective. See: I thought a…

In this article, we explain how we can use the freefincal robo advisory tool to track the progress of our financial goals. The robo tool as many readers would know is a financial planning tool. It automates the process of systematic risk management and suggests a variable asset allocation schedule with step-wise equity reduction. The…

A reader who prefers anonymity, asks, “I have been following your retirement bucket strategy illustrations with interest. While I have no issues with the plan and see the necessity for dividing a corpus into an income bucket, low risk, bucket, high-risk bucket etc. I wonder how practical all this is for a retiree. How many…

A reader asks, “I will turn 50 this year and am considering retirement. How do I find out the corpus required for retirement in 2022? My annual expenses are about Rs. 6.5 lakhs ” As mentioned in a recent article – I thought a pension was unnecessary but age taught me a retirement planning lesson! –…

In this article, we discuss the pros and cons of using a reverse mortgage as an income source after retirement. How does a reverse mortgage work? Suppose you live on your own property with your spouse. You mortgage the house to a bank in exchange for a lump sum or periodic payment. That is, you…

I have been making retirement planning tools for more than 11 years now. During this time, thanks to a combination of luck and discipline, I have been able to achieve financial independence. While my risk appetite has increased, I have also become more conservative in planning for retirement. I have come around to see the…

Many readers have asked me this common question: “Where do I enter the value of my second house in the calculator while planning for retirement?”. The answer to this “depends” on one’s circumstances. Most people who have second property get rental income from it and would like such an income to continue into retirement. We…

Suman asks, “Sir, What return should I use while planning for retirement? I wish to retire by age 50. I am currently 30 years of age”. Many people make two mistakes while planning their finances. The most common mistake is to assume equity mutual funds offer a 12% return and use that to compute the…