A reader asked, “What is your idea of a comfortable retirement?” A discussion. The answer is subjective and subject to significant change especially if we are far from retirement. Perhaps only those investing for at least a decade will likely ask this question. ‘Comfort’ implies something well above a basic requirement. So let us first…
Continue reading →A reader asked, “What is the effective interest rate of the Unified Pension Scheme?” A discussion. As a pension scheme, it can be compared with life insurance policy annuity schemes that offer a pension in exchange for a lump sum. These schemes have an interest rate, also known as an annuity rate. See LIC Pension…
Continue reading →This article compares my stock portfolio with an equivalent investment in a Nifty index fund and the Nifty 100 Low Volatility 30 TR index. We post this comparison each month. Before we begin, new readers need to appreciate the context of these investments. Update: We recently added a new tool to the freefincal investor circle…
Continue reading →We recently published a calculator to compare the Unified Pension Scheme and the National Pension Scheme. We have updated this tool with an alternative comparison using withdrawal rates. This is based on the thumb rule to decide between the Unified Pension Scheme and the National Pension Scheme. Our first method compares only the products. It…
Continue reading →A reader says, “What is the corpus needed for a 50-year-old to retire immediately if my monthly expenses are Rs. 50,000?” Let us compute this using the freefincal robo advisor tool. This provides an accurate estimate compared to approximate calculations using spreadsheet formulae. The robo tool can also include three post-retirement income streams. It also…
Continue reading →We discuss a simple, holistic guideline or thumb rule to decide between the Unified Pension Scheme and the National Pension Scheme. We have published a calculator to compare NPS and UPS. However, this involves too many unknowns and projections if retirement is far away. Also, the calculator only compares the two products, NPS and UPS….
Continue reading →Since Budget 2024 announced a higher LTCG tax on equity mutual funds and removed indexation benefits for old debt fund units, many readers have asked us if they could use the tier II account of NPS for tax-free rebalancing. Although this response is expected and unsurprising, it is still frustrating and disappointing. Investors are ready…
Continue reading →Use this free calculator to find out if you can stay invested in the National Pension Scheme or must consider a switch to the Unified Pension Scheme (for Central government subscribers only at the time of writing). We have already covered the salient features of the Unified Pension Scheme and other considerations in our coverage:…
Continue reading →Several readers have asked us for a calculator to help them decide if they should switch from the National Pension Scheme (NPS) to the newly announced Unified Pension Scheme (UPS). Such a calculator is now available for free download, but several caveats must be considered. This is not an easy calculation, especially for those new…
Continue reading →With the introduction of the Unified Pension Scheme from 1st April 2025, many NPS government subscribers would ask, Should I switch from National Pension Scheme to the Unified Pension Scheme? Here is a free calculator to find out! At the time of writing, the full terms and conditions of the Unified Pension Scheme (UPS) are…
Continue reading →The government will offer the Unified Pension Scheme (UPS) as an alternative to the National Pension Scheme (NPS) from 1st April 2025 to all central government employees. State government employees are also eligible if the states join. Update: Use our free calculator linked below to compare NPS and UPS! The salient features are: Assured pension:…
Continue reading →Indians are known to work hard to earn their money. They are equally famous for knowing exactly how to spend it! There are no lies in that statement. We are known to be efficiently frugal. Some of that we have learned through trial and error, but most of our financial knowledge has been passed down…
Continue reading →In this edition of the reader story, Dr Aakash shares his investment journey while studying medicine. About this series: I am grateful to readers for sharing intimate details about their financial lives for the benefit of readers. Some of the previous editions are linked at the bottom of this article. You can also access the full reader story…
Continue reading →We published Analyzing the Growth of my 15 Crores Portfolio a few days back. This was a sequel to My Journey to a Ten Crore Portfolio. Naturally, there were many questions from readers. Arun looked at them patiently (and silently) and answered the key ones in this article. If you have not read the first…
Continue reading →A reader says, “I am currently 37, married (no kids yet), based out of Bangalore and, as usual, a very late starter to equity investing. My debt portion (PPF, EPF, FDs) is much higher than equity, and all I am trying is to catch up and make debt to equity 50:50 and regularly rebalance once…
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