Tue, Nov 19, 2024
SIPs enable investors to acquire units at a reduced average cost per unit. When the market rises, investors buy fewer units; when it falls, they buy more. Compounding increases your investment returns over time and promotes faster development. It generates larger profits and promotes investment growth over time. The initial deposits compound over time to form a considerable corpus.
More >
Retirement Planning: Whether you're a salaried employee, a small business owner, or an individual, planning for retirement is essential. There are numerous options available for building a strong retirement corpus, and one highly effective strategy is investing in mutual fund SIPs. If you want to build a retirement corpus of Rs 8 crore with Rs 25,000 monthly SIP, then you have to plan and invest strategically. Know how:
Having a retirement corpus provides a sense of financial security during the post-employment years. By planning a retirement, individuals can reduce the risk of becoming dependent on others for financial support. Starting early is the key strategy that might help you reach your goal of building a satisfactory retirement corpus. Here, we will discuss how a monthly savings of Rs 8,000 can help an individual build Rs 4 crore corpus.
Fri, Jul 26, 2024
Retirement Planning: One can open a single or a joint account in SCSS. An individual above 60 years of age, a retired civilian employee above 55 years of age and below 60 years of age, or a retired defence employee above 50 years of age and below 60 years of age can open the SCSS account. The scheme provides 8.2 per cent annual interest. The interest is payable from the date of deposit to March 31/September 30/December 31 in the first instance and thereafter, on April 1, July 1, October 1, and January 1.
LIC Saral Pension Plan: Planning for retirement is an important aspect of financial stability as it allows one to enjoy a stress-free life in old age. Without sufficient money, individuals may find themselves dependent on others for basic needs.
SBI Senior Citizen FD Interest Rates: Senior citizens need financial freedom in their retirement life, so they need a fixed income source. This income helps them meet their daily expenses in old age, and they don't have to depend on anyone for monetary needs.
Wed, Jul 24, 2024
PPF vs VPF: One can contribute up to a maximum of 12 per cent of their basic salary and dearness allowance (DA) in EPF. If one wants to contribute beyond that limit, it can be done through Voluntary Provident Fund (VPF). PPF, on the other hand, has a lock-in period of 15 years, which can be extended for further blocks of five years.
Fri, Jul 19, 2024
NPS Monthly Pension: As per the NPS official website, NPS Tier I account holders can avail tax deduction of up to 10 per cent of their salary (basic+dearness allowance) under section 80 CCD(1) within the overall ceiling of Rs 1.50 lakh under Sec 80 CCE. They can also get a tax deduction of up to Rs 50,000 under Section 80 CCD(1B) over and above the overall ceiling of Rs 1.50 lakh under Section 80 CCE.
Top SWP Plans for Monthly Income: In a SWP plan, the mutual fund house sells the investor's net asset value (NAV) units to provide monthly income. SWP provides rupee cost averaging, so, if the NAV rate is low, the fund house sells more units, if the NAV rate is high, it sells less units. Senior citizens often make SWP as an investment option for their retirement planning.
SBI Senior Citizen Fixed Deposit Interest Rates: State Bank of India (SBI), like many other banks, offers extra interest rates to senior citizens compared to general citizens. The interest rate for SBI Senior Citizen Amrit Kalash scheme is 7.60 per cent. In the 1-year, 3-year, and 5-year FDs, the interest rates are 7.30 per cent, 7.25 per cent and 7.50 per cent, respectively. The 5-year FD also offers tax benefits of up to Rs 1.50 lakh under Section 80C of the Income Tax Act, 1961.
Thu, Jul 18, 2024
When we say that people can build a corpus of over Rs 1 crore by saving just Rs 50 a day and investing it in a scheme offering compound growth, it is nearly impossible to fathom that possibility. But years of compounding can work wonders and help one accumulate wealth in large proportions with small contributions.
Wed, Jul 17, 2024
EPF and PPF schemes have some similarities. They have long lock-in periods. Investments up to Rs 1.50 lakh in a financial year in each scheme are tax-exempted under Section 80C of the Income Tax Act, 1961. Both fall in the exempt-exempt-exempt (EEE) category, where investment, tax earned, and the maturity amount are tax-free.
Tue, Jul 16, 2024
SIP Investment Triple 5 Formula: Most people start thinking about retirement planning quite late in life. However, to build a substantial retirement corpus, it's essential to start planning early in your career.
Top 5 NPS Mutual Funds: National Pension System is a market-linked retirement scheme aimed at providing a lump sum amount and a monthly pension to the NPS account holder.
Mon, Jul 15, 2024
EPF Calculator: The Employees' Provident Fund Organisation (EPFO) provides 8.25 per cent annual compound interest on EPF contributions. An employee can contribute a maximum of 12 per cent of their basic salary and dearness allowance (DA) to the EPF account. The employer matches the same amount and deposit in the employee's EPF account.
Fri, Jul 12, 2024
NPS Monthly Pension: The thumb rule for achieving financial freedom early is to start investing early. In schemes such as NPS, where one gets compound growth, the early starter gets the advantage of investing a much smaller monthly amount than a late starter and the same retirement corpus and monthly pension. So, if somebody starts contributing to NPS at 25 instead of 40, they may have to contribute just one fourth to get the same corpus and pension as the latter.
Wed, Jul 10, 2024
Shaily Gang, Head-Products, Tata Asset Management, says Wealth creation happens when capital is invested in a systematic manner vide SIPs or STPs into equity funds or even hybrid category funds and gets compounded over the phase where the individual is earning an income or accumulating wealth. During the harvesting phase or post-retirement, when there is a need for regular cash flows by the individual, SWP works very well.
While the EPF scheme offers a fixed compound return of 8.25 per cent annually, the NPS is a market-linked scheme, where the returns may vary based on equity proportion or fund manager selection. The interest earned and the maturity amount in EPF are tax-free, while there is no tax on NPS corpus if one is withdrawing up to a 60 per cent lump sum at the time of retirement.
Fri, Jul 05, 2024
Retirement Planning: One can contribute a minimum of Rs 1,800 and a maximum of 12 per cent of their basic salary and dearness allowance (DA) to their EPF account. The employer also needs to match the same amount and deposit it into the employee's EPF account. However, the employer's 12 per cent contribution is deposited in two ways. While 3.67 per cent of its proportion goes to the EPF, 8.33 per cent goes to the Employee Pension Scheme (EPS).
To avail a SWP plan, you make a one-time investment in a mutual fund and get a return on it, which the mutual fund house gives you back in the form of a monthly income. The advantage of a SWP mutual fund is that if your rate of withdrawal is much lower than your rate of return, you can get the monthly income for decades, and your fund will still keep growing.
Retirement Planning: National Pension System (NPS) is a government-run retirement scheme that is getting popular among new-age employees and investors who want to build a large retirement corpus and get a monthly pension after that. The market-linked scheme provides an opportunity for its account holders to choose the percentage of equity in their portfolio up to a maximum of 75 per cent. But how much should your monthly contribution be to achieve a sizeable corpus and get a monthly pension of Rs 1 lakh? Ranbheer Singh Dhariwal, Chief Executive Officer, Max Life Pension Fund Management Limited, suggests how you can plan your NPS journey.
SBI Senior Citizen FD Interest Rates 2024: Senior citizens need a regular source of income at their retirement age. So, a lot of them prefer investing in senior citizen fixed deposit schemes as they offer them higher interest rates than general citizens. The 5-year FD also provides tax benefits of up to Rs 1.50 lakh on deposits under Section 80C of the Income Tax Act.
Thu, Jul 04, 2024
SIP+SWP: One can start a SIP with a small monthly investment of Rs 100. The SIP investment provides rupee cost averaging as well as compound growth. While in a SIP you invest money every month, in a SWP plan, you withdraw money every month from the mutual fund scheme.
By accepting cookies, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts.
