The biggest financial risk during retirement is that you may outlive your retirement corpus. You may have planned really well and planned for the corpus to last till the age of 90 but you are fit for another 10 years by the time you turn 90. I have not even considered many unknowns and unplanned expenses in life. What do you do then? How will you provide for your basic … [Read more...] about When to purchase an Annuity plan?
Affordable housing is one of the major focus areas of the present Government. Pradhan Mantri Awas Yojana (PMAY) was launched in 2015 to promote affordable housing. Under PMAY, the Government launched Credit Linked Subsidy scheme (CLSS) to provide relief to such buyers who take loan to purchase or construct a house . Under the scheme, the Government, through its nodal agencies … [Read more...] about How Interest Subsidy is calculated under Credit Linked Subsidy Scheme in PMAY?
In Union Budget 2016, the Finance Minister proposed a one-time tax exemption to EPF subscribers to switch to NPS. There will be no tax levied for making such a switch from EPF to NPS. Do note the transfer from EPF to NPS is only approved on paper. Many modalities are still being worked out. You can expect opposition from various quarters. However, since the switch is … [Read more...] about EPF vs NPS: Should you switch from EPF to NPS?
The Government of India is coming out with Further Fund Offer (FFO) of CPSE ETF. FFO opens on January 18, 2017 and closes on January 20, 2017. The Government plans to raise Rs 4,500 crores with an option to retain over-subscription up to Rs 1,500 crores. Should you invest in follow on offer of CPSE ETF? Let’s discuss the various aspects. What are Exchange Traded Funds … [Read more...] about Should you invest in CPSE ETF follow on offer?
Life is fickle. Anything can happen. You purchase insurance to protect yourself financially against such unfortunate events. A good insurance portfolio ensures that you (or your finances) are covered against all eventualities. Life insurance proceeds will ensure that your family achieves the financial goals in your absence. A health insurance plan will ensure quality health … [Read more...] about Do you need a Personal Accident Insurance Plan?
What, according to you, is an emergency? I am sure, for the most of us, medical hospitalization will rank at the very top. And where do you keep money that you would touch only in the event of medical emergency? Where do you keep funds for medical emergency? Cash in Hand or Cash in Savings Bank account. A few of us also keep in fixed deposits. The reason is ease of … [Read more...] about ICICI Prudential Medical Advantage Feature: Is it any good?
It is often said that you must not mix insurance and investment. However, if you get life cover absolutely free of cost while making an investment, should you ignore it? A few AMCs provide you an option to avail life cover (free of cost) when you start SIP in select schemes from them. Yes, the life cover is INDEED free and cost is borne by the AMC. How does it work? Life … [Read more...] about You may get free life cover along with your mutual fund SIP
PFRDA, in its circular dated November 4, 2016, added two more options of life cycle funds under Auto Choice option viz. Aggressive Life Cycle Fund and Conservative Life Fund. These options are in addition to Existing life cycle fund (Moderate life cycle fund or LC 50), which shall still be the default fund. Therefore, investors will have three options to choose under Auto … [Read more...] about NPS updates: Two New Life Cycle Funds and a New Asset Class
Plan to start saving for your retirement? Where should you invest? Let’s look at various products where you can invest in. Defined Benefit Plans from Employers Pension plans from Insurance Companies National Pension Scheme (NPS) Retirement Plans from Mutual Funds Disciplined investing in Mutual funds (along with PPF, EPF etc) In this post, I will compare … [Read more...] about Retirement Planning: Pension plans or Mutual Funds?
A subscriber can exit NPS due to following reasons: Superannuation (or retirement) Turning 60 (All Citizens model) Premature Exit Death How do you exit NPS? Are you aware of the exit process? PFRDA came out with a circular in November 2015 stating that all withdrawals or exit from NPS shall be made online. However, the process is completely online only for … [Read more...] about How to exit NPS?