Wed, Sep 18, 2024
Retirement Planning: EPF is a retirement scheme where the employee of a private sector makes a monthly contribution to generate a retirement corpus. The minimum basic salary to get an EPF account should be Rs 15,000. Systematic Investment Plan (SIP) is a method to invest in a mutual fund scheme. In SIP, an investor invests a predetermined amount every month or investment cycle.
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From Rs 12,000 monthly SIP to Rs 8 crore retirement corpus: Having a large corpus in the long run can help you bear your large expenses. But to reach that stage, one needs to start investing early and in schemes where they can get steady post tax returns.
Tue, Sep 17, 2024
National Pension System (NPS) Annuity Calculator: When an NPS account holder reaches the retirement age of 60, they get the option to withdraw up to 60 per cent of their retirement corpus. From the rest of the 40 per cent, they purchase annuity, return from which help NPS subscribers get a monthly pension.
Mon, Sep 16, 2024
EPF Retirement Corpus Calculation: Employees' Provident Fund (EPF) is a retirement scheme where one can contribute monthly and build a corpus. One receives 8.25 per cent compound interest on their investments. If they start investing early, they can build a large corpus in the long run.
Fri, Sep 13, 2024
NPS vs UPS vs OPS: In Unofied Pension System (UPS), the pension amount is 50 per cent of the last 12 months basic pay (for employees who have completed 25 years of service).
Retirement Planning: The combination of systematic investment plan (SIP) and the systematic withdrawal plan (SWP) can be used to get monthly income. The idea is to invest Rs 15,000 for 20 years, get 14 per cent annualised return on that and then withdraw Rs 100,000 monthly income for at least 45 years.
Thu, Sep 12, 2024
Retirement Planning: Early investors get an edge over late starters when it comes to building retirement corpus. If you start investing at 25 or 30 years of age, your retirement corpus is likely to be much larger if you start investing at 35 or 40.
Wed, Sep 11, 2024
From Rs 10,000 Monthly SIP to Rs 10 Crore Corpus: A steady approach and a long-investment horizon are necessary to create a huge corpus. An early starter gets an edge over a late starter in investment journey due to compound growth of investment.
SIP vs EPF Corpus: EPF is a retirement scheme where the EPF subscriber gets an 8.25 per cent compound interest rate on their deposits. EPF subscribers make a monthly contribution to their EPF account from their salary. The employer also contributes the same or a nearly equal amount to the subscriber's EPF. SIP is a method to invest in mutual fund schemes. There are no fixed returns; rather, they are market-linked. An investor invests a fixed amount through SIP every month in a mutual fund scheme.
Tue, Sep 10, 2024
NPS Annuity Calculator: At the retirement age of 60 years, they get the option to withdraw up to 60 per cent of their corpus and purchase annuity from the rest of 40 per cent money. The return from the annuity amount helps them get a monthly pension. If NPS subscribers want, they can purchase annuity from all of their 100 per cent retirement corpus.
Mon, Sep 09, 2024
EPF Maturity Amount Calculator: Employees' Provident Fund (EPF) is a retirement scheme where private sector employees can make a monthly contribution to build a retirement corpus. Contributions up to Rs 1.50 lakh in a financial year provide tax benefits under Section 80C of the Income Tax Act, 1961.
Fri, Sep 06, 2024
NPS vs UPS vs OPS: The central government launched NPS for central government employees in 2004. The government included private employees, self-employed, and other individuals in 2009. UPS is aimed at consolidating multiple pension systems like OPS and NPS into a single framework. Old Pension System (OPS) is the first pension in India introduced in 1924. It was revised post independence.
SIP+SWP investment for retirement: Through SIP, one can invest a predetermined amount every month in a mutual fund scheme. This investment helps them get net asset value (NAV) units of that scheme. Here, instead of building a large corpus by investing a monthly amount in a mutual fund scheme, one invests a lump sum amount. The investor instructs the mutual fund house to sell their NAVs whose worth is equal to the predetermined amount that the investor needs as the monthly income.
Wed, Sep 04, 2024
From Rs 20,000 monthly SIP to Rs 15 crore retirement corpus: The mantra to create a huge retirement corpus is to beging your investment journey early in your career. It gives years of compounding and grow your investment fast.
EPF vs SIP vs PPF: EPF is a scheme for private sector employees, where both the employee and the employer contribute monthly. The EPF subscriber gets 8.25 per cent interest rate compounded yearly on these contributions. PPF is also used as a retirement scheme, which is run by the post office and banks. The post office provides 7.1 per cent annual interest compounded yearly.
Tue, Sep 03, 2024
NPS Pension Calculator: NPS offers 5 types of pensions to its subscribers- annuity for life without return on purchase (ROP), joint life annuity with ROP, joint life annuity without ROP, and family income with ROP.
Mon, Sep 02, 2024
EPF Retirement Planning: This is a retirement scheme where both the employee and the employer contribute to the former's EPF account. The minimum contribution from either side is Rs 1,800 on a basic salary of Rs 15,000, the maximum is 12 per cent of the basic salary and dearness allowance (DA). The employer's 12 per cent contribution is allocated to EPF (3.67 per cent) and Employees' Pension Scheme (8.33 per cent).
Thu, Aug 29, 2024
Retirement Corpus: If you plan your retirement early in your life and start investing regularly, there are high chances for you to build a large corpus with a small monthly contribtuion.
If you invest Rs 5,000 a month in a scheme, where you get 12 per cent annualised growth for 15 years, your investment will be Rs 9,00,000, and the expected amount will be Rs 23,79,657. But if you invest Rs 15,000 a month 6 year and get 12 per cent annualised return on it, your investments will be Rs 10,80,000, but the expected amount will be Rs 15,54,038. Thus, Rs 1,80,000 less investment can help you get Rs 8,25,619 more because of staying 10 years extra in your investment.
Wed, Aug 28, 2024
Savings Calculator: If you save Rs 10 a day, your total savings in 1 year will be Rs 3,650. If you divide it by 12, in each month of the year, you can invest Rs 304.16.
EPF vs NPS vs SIP: Employees' Provident Fund (EPF) and National Pension System (NPS) both are retirement schemes, where one can contribute on a monthly basis. Through SIP, one can invest in mutual funds. All 3 schemes can help one a sizeable retirement corpus in the long run.
Tue, Aug 27, 2024
Retirement Planning: The earlier you start investing, the higher your retirement corpus can be. E.g., if you invest Rs 2,000 a month through SIP in a mutual fund scheme and get a 12 per cent annualised return on it, in 10 years, you will build just a Rs 4.5 lakh estimated corpus on a Rs 2.40 lakh investment, but if you continue it for another 20 years and get the same return, your estimated corpus will grow to Rs 61,61,946, while your investment will be just 7.20 lakh.
Retirement Planning: It is a market-linked scheme where the NPS subscriber can choose equity exposure from 25 per cent to 75 per cent. The starting investment age is 18 years, while one can invest till 75 years of age. At 60 years of age, they can withdraw up to 60 per cent lump sum returns, while they need to purchase annuity from the rest of the 40 per cent.
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