A reader asks, “I have a question regarding this article, wrt to the kid’s education corpus – After ten years of MF investing, Suhas is on track to achieve his financial goals. The user mentions opening a second ppf account. My question is, Is it possible for me to invest in my kid’s ppf account,…
Continue reading →This article explains how a retirement bucket strategy can be combined with an income ladder in various ways. The goal is to reduce the management risks associated with a bucket strategy. In an income ladder, we use fixed-income instruments that mature periodically in future, providing income to the retiree. Let us consider an example. Suppose…
Continue reading →We recently ran a survey for clients of fee-only advisors who are part of Freefincal’s curated list and fee-only India – 964 clients have participated. A healthy trend has emerged that warrants our attention, and we strongly believe any further response would only strengthen it. We shall discuss answers to two survey questions in this…
Continue reading →This article addresses frequently asked questions on Financial Independence, Retire Early or FIRE. 1 What is the definition of financial independence? When a person has enough income from her investments or net worth to not only replace existing gainful employment but also combat inflation in essential expenses and lifestyle changes for the remainder of their…
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. I started direct equity investing only after achieving a comfortable level of…
Continue reading →As reported earlier, SEBI has included nine freefincal calculators created by M. Pattabiraman in its investor education website. Ms Monika Halan, the SEBI Investor Protection Education Fund Advisory Committee chairperson, suggested including these tools, and the committee inaugurated them on 22nd Nov 2022. Tutorials for each tool will be made available in the coming weeks….
Continue reading →A reader inquires, “As I approach my 50th birthday this year, I’m contemplating retirement. What steps should I take to determine the necessary retirement corpus for 2023? My yearly expenses amount to approximately Rs. 6.5 lakhs.” As mentioned in a recent article – I thought a pension was unnecessary, but age taught me a retirement planning…
Continue reading →At freefincal, we have often used the Sensex price returns to portray risk via rolling lump sum and SIP returns. We have added 2% to the price return to account for dividends. This is because the price data starts from 1970 while the total returns data (that assumes dividends are reinvested without tax begins only…
Continue reading →This is a debt mutual fund screener for fund selection, fund portfolio tracking and learning. It also includes hybrid funds that invest in bonds. It will satisfy investors who wish to invest in money market funds, banking and PSU funds etc. The credit quality of the bonds in the portfolio and the bond maturity profile…
Continue reading →A reader says, “Hello, sir- I have made the folly of investing in ULIPs. I have read enough articles from people like you, who I trust to know it was a mistake. What I want to understand is what do I do next? Should I wait till the five-year lock-in and then withdraw my capital?…
Continue reading →Everyone desires to save tax, and Indian investors are particularly motivated by tax savings. Salaried individuals can reduce their tax liability by utilizing Section 80C, Section 80D, and Section 24 (for tax savings on home loan interest). Investing 50,000 annually in the NPS (National Pension Scheme) can also provide further tax benefits. These are the…
Continue reading →In this edition of the reader story, we meet a 28-year-old who has created an elaborate retirement strategy to navigate the stormy waters of the IT industry. 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…
Continue reading →Let’s get rich with Pattu, produced by Ofspin is a weekly podcast on money management. We have completed eight episodes so far, and you can now listen to the show on nine different channels! Each episode will cover one aspect of money management – insurance, emergency funds, planning for retirement, financial independence and early retirement,…
Continue reading →This is an ETF screener based on tracking errors and tracking differences (ETF return minus index return). The screener will help users evaluate how efficiently an ETF has tracked its underlying benchmark. The tracking error is the ETF’s standard deviation minus index monthly return differences. The lower the tracking error, the more efficient the ETF…
Continue reading →Last year, while preparing a retirement planning illustration based on laddered annuities, we listed the annuity rates of LIC Jeevan Akshay – an immediate annuity plan. These are the revised and higher annuity rates applicable from Feb 28th 2023. Additional resources Use this annuity ladder calculator to plan for retirement with multiple pension streams How…
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