One day when you are 40, your wife will scream at you saying ‘You have done NOTHING’ for our old age…..

So you will feel guilty and continue to watch TV….but there will be no action….

Then one day at lunch your colleague will tell you …’hey you know what I just bought a pension plan’ and my old age is taken care of…and you will be impressed. Let alone that he is also a geek working on CAD and wanting to migrate to the US but his dad is not allowing him to…He is aged 32….and now you are doubly impressed.

So you tell him…’arre from whom did you buy?’ and he says…apna banker hai na…nice guy. He had come and showed me the projections…if  I invest Rs. 25000 a month, I will get 51000 a month pension for the rest of my life after 58….

So you are impressed again! Wow Rs. 50,000 a month! Wow….


SEE what Debashis has to say….lol……

So how should you actually do it?

1. Know when you will retire

2. Estimate your expenses

3. Do a SIP in 2-3 funds starting NOW….Simple?

4. Do not touch a pension plan, unless  you can reverse engineer the cost completely, find a low amc product, check the total cost and you are willing to pay the premium for the full term – best is stay away 🙂

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  1. Nice one, Subra.

    Might have been a fictional product but I did a quick XIRR calculation for the product – Even if the payout of 50,000 continues until the age of 100, the internal rate of return is just 4%.

    Not even going into the fact that 50k would be worth 5k in present value after 30 years 🙂

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