Invest In Tax Saving Mutual Funds Online
Call 0 94 8300 8300 (India)
Plan ahead, post-retirement years as it may not be the same as now
THROUGHOUT your working career, you strive hard to achieve your dreams and offer your family all the comforts that life has to offer. But, have you planned on how you will manage your lifestyle post retirement? Retirement planning enables you to continue living life on your own terms and to enjoy a good standard of living even after retirement.
In the Indian context, retirement planning assumes greater significance due to the following reasons:
■ Absence of mandatory provision for pension: A large proportion of India is self-employed or works in the unorganised sector and does not benefit from any state or employer-sponsored post-retirement scheme.
■ Increase in life expectancy: Increasing life expectancy coupled with increasing desire to retire earlier means a longer retirement phase.
■ Rise of the nuclear family system: As per HSBC's 'The Future of Retirement Report India Fact Sheet' published in 2011, high percentages (~32%) of Indians want to live with their children after they retire. This is more than twice the global average.
However, the transition from a joint family system to independent nuclear families, especially in urban India, is a reality, and Indians need to plan for a financially-independent retired life.
■ Increase in cost of living: Rising inflation, growing aspirations for better lifestyles and increasing costs of healthcare make retirement planning indispensable.
When should you start planning for your retirement? In order to maintain a good standard of living post-retirement, you need to plan for retirement earlier.
Let's take an example: Ramesh invests Rs 25 lakh towards his retirement corpus, while Vikram invests Rs 50 lakh for this purpose.
Despite investing less, by the age of 60, Ramesh accumulates Rs 1.08 crore, compared with Vikram's accumulation of Rs 88 lakh. How did this happen? What Ramesh had in his favour was time. He began investing a sum of Rs 1 lakh per annum earlier, at the age of 35 years.
Vikram, to compensate for lost time, saved five times the amount invested by Ramesh, that is Rs 5 lakh every year from the age of 50. This is the power of compounding.
How to plan for retirement? You can build an ideal retirement plan in five simple steps:
Step 1: Arrive at how much income you would require to live comfortably post retirement. Remember to take into account aspects like inflation, increased medical costs, vacations and gifts for family.
Also, eliminate costs like children's education and rent, if you own your home.
■ Step 2: Establish the amount of corpus you require to generate your desired post-retirement income.
■ Step 3: Determine how much you need to save regularly. Start saving now so that you have time on your side and can enjoy the power of compounding.
■ Step 4: Select the right retirement plan that enables you to meet your post-retirement requirements.
■ Step 5: Systematically invest a fixed amount every month for your retirement.
How to choose the right retirement plan? While you can invest in various instruments for retirement planning, you need to keep in mind that a sound retirement plan should provide returns that can beat inflation in the long term, provide a level of guarantee to safeguard your retirement corpus and ensure that this corpus is accessed only for the purpose of post retirement income.
At present, pension plans offered by life insurance companies and New Pension Scheme (NPS) are two good options for retirement planning. NPS offers a transparent and low charge retirement solution.
Life insurance companies too have revamped their pension plans and now offer a significantly enhanced proposition to customers. These pension plans allow you to build up a corpus and live a comfortable life after you retire from work. They are designed such that customers remain invested for the long term in order to accumulate an adequate corpus for retirement.
Some products allow customers to choose their investment strategy.
Happy Investing!!
We can help. Call 0 94 8300 8300 (India)
Leave your comment with mail ID and we will answer them
OR
You can write back to us at PrajnaCapital [at] Gmail [dot] Com
---------------------------------------------
Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.
Invest Tax Saving Mutual Funds Online
Tax Saving Mutual Funds Online
These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)
Download Tax Saving Mutual Fund Application Forms from all AMCs
Download Tax Saving Mutual Fund Applications
These Application Forms can be used for buying regular mutual funds also
Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )
- ICICI Prudential Tax PlanInvest Online
- HDFC TaxSaverInvest Online
- DSP BlackRock Tax Saver FundInvest Online
- Reliance Tax Saver (ELSS) FundInvest Online
- Birla Sun Life Tax Relief '96 Invest Online
- IDFC Tax Advantage (ELSS) FundInvest Online
- SBI Magnum Tax Gain Scheme 1993Invest Online
- Sundaram Tax SaverInvest Online
- Edelweiss ELSS Invest Online
Best Performing Mutual Funds
- Largecap Funds Invest Online
- DSP BlackRock Top 100 Fund
- ICICI Prudential Focused Blue Chip Fund
- Birla Sun Life Front Line Equity Fund
- Large and Midcap Funds Invest Online
- ICICI Prudential Dynamic Plan
- HDFC Top 200 Fund
- UTI Dividend Yield Fund
- Mid and SmallCap Funds Invest Online
- Reliance Equity Opportunities Fund
- DSP BlackRock Small & Midcap Fund
- Sundaram Select Midcap
- IDFC Premier Equity Fund
- Small and MicroCap Funds Invest Online
- DSP BlackRock MicroCap Fund
- Sector Funds Invest Online
- Reliance Banking Fund
- Reliance Banking Fund
- Tax Saver MutualFundsInvest Online
- ICICI Prudential Tax Plan
- HDFC Taxsaver
- DSP BlackRock Tax Saver Fund
- Reliance Tax Saver (ELSS) Fund
- Gold Mutual Funds Invest Online
- Relaince Gold Savings Fund
- ICICI Prudential Regular Gold Savings Fund
- HDFC Gold Fund
Posts
No comments:
Post a Comment