There are many types of people I meet – some who are simple and some who think they are leading a simple life. I know a person who cannot print anything from a word or excel. He has no clue about downloading his bank statement. He is a big executive in the pharma business – [...]
About the Book : – To most people retirement is an age. It of course depends on your health, the company you work for etc. However in the first chapter I would like to introduce you to the concept that retirement is an amount of money! After all, if you have that magical amount why [...]
Are you in Denial mode regarding your retirement financial needs?
I cannot comment for every one, but too many people I meet are in denial about their financial needs for retirement. Most of us do not want to accept that we will buy 3-4 washing machines, air conditioners, refrigerators, maybe about 2-5 cars, at least one [...]
There are many people I know who are contemplating retirement 5-15 years before they HAVE to retire. When I ask them WHY do they want to retire, these are the normal answers that I get:
1. Have enough money. However there are a few people who say they have ‘enough’. Then I calculate how much they [...]
Voluntary Retirement Offer – Evaluation:
For whatever reasons – voluntary retirement offers are now quite common and most people do not have a choice. However, if you do have a choice, see how to make the best of it. If you are given a VRS offer at age 45 and you have a transferable skill you [...]
Normally the Avenues for Retirement Planning for the Indian population would be the following:
PPF , PF, EPFO , Mutual Fund Pension Schemes, Retirement Planning products from Insurance Companies, bank fixed deposits and post office schemes. A very small part of the population created its own customized Individual Products. This could be a couple of extra [...]
Buffer Against Market Volatility
The investment pattern is adjusted to growth and security. It protects against market volatility by allowing a subscriber to invest in a diversified and balanced portfolio. To retain his pension corpus for 10 years after age 60.
Between the ages of 60 to 70 , the subscriber can withdraw his savings in phased [...]
A brief history of why the National Pension Scheme was created:
The Forgotten Population
The aged were not considered relevant
People spent a small time in retirement – the gap between the retirement age to the living time was not much.
They constitute the invisible population, financially dependant and passive in the economic process – [...]
NPS was launched in the year 2004 by the Indian government as a defined contribution pension system. This was the time that the government realised the folly of the indexed pension that it All employees who joined the Indian government service from 2004 come under this scheme. The previous defined benefit pension system for government [...]
The second step in retirement planning is to compare the Income and Expenses.
Of course there are 3 possibilities:
Expenses = Income
Expenses > Income
Expenses < Income
Without getting into any relative terms, situation 1 and 2 are close to disaster. Also remember if expenses are only slightly lesser than income, the demon called inflation will quickly move you [...]