I have been working for the past three years. I am unmarried and stay with my parents. My employer deducts R
s. 5,000 per month towards EPF. Is this alone sufficient for retirement? How much should I invest and do I need to start retirement planning now? - Priyanka Sharma, team leader
It's always good to start early when it comes to retirement. 20s and 30s are golden years for saving towards retirement. Usually, one has the minimum amount of responsibilities in this age bracket. Also, the money invested at this age would get a longer time to mature, grow and withstand volatility. You have two options to go about saving your post-retirement life. You can look at NPS (National Pension Scheme), for which you have to open a PRAN (Permanent Retirement Account Number) account. Once you have this account, you can deposit your contributions in it every year. NPS also provides tax benefit of a maximum of Rs. 50,000 per year. Once you are contributing, you can allot your money towards equities, corporate bonds and government securities. At a young age, it is advisable to allot maximum money in equity. Secondly, you can also start saving by way of SIP (Systematic Investment Plan) into an equity fund. For this, novice investors can stick to an index fund and keep contributing via SIP. Investors who are more comfortable with this can also go for a largecap equity fund, and contribute via SIP. Equity is the asset class and mutual fund is the vehicle you can focus on. Since you are starting early, this should help you secure a good corpus for your retirement.
My salary is Rs. 26,000 a month and I require around Rs. 3 lakh in next six months for marriage expenses. I also plan to own a house in future. - Dinesh Parmar, software engineer
If you're living with your family and there aren't any commitments towards household expenses, you have two options: 1) keep opening fixed deposits every month with maturity of six months (maturity of six months with the first investment, then five months next month and so on; 2) if a bank is offering a recurring deposit or RD of six months, go with that. After the marriage expense is taken care of, you can start saving for buying a house. After you have some savings towards the house, you can look at your home loan options.
(Gaurav Mashruwala is a financial planner and author of 'Yogic Wealth')
Disclaimer: The opinions expressed within this article are the personal opinions of the author. The facts and opinions appearing in the article do not reflect the views of NDTV and NDTV does not assume any responsibility or liability for the same.
It's always good to start early when it comes to retirement. 20s and 30s are golden years for saving towards retirement. Usually, one has the minimum amount of responsibilities in this age bracket. Also, the money invested at this age would get a longer time to mature, grow and withstand volatility. You have two options to go about saving your post-retirement life. You can look at NPS (National Pension Scheme), for which you have to open a PRAN (Permanent Retirement Account Number) account. Once you have this account, you can deposit your contributions in it every year. NPS also provides tax benefit of a maximum of Rs. 50,000 per year. Once you are contributing, you can allot your money towards equities, corporate bonds and government securities. At a young age, it is advisable to allot maximum money in equity. Secondly, you can also start saving by way of SIP (Systematic Investment Plan) into an equity fund. For this, novice investors can stick to an index fund and keep contributing via SIP. Investors who are more comfortable with this can also go for a largecap equity fund, and contribute via SIP. Equity is the asset class and mutual fund is the vehicle you can focus on. Since you are starting early, this should help you secure a good corpus for your retirement.
My salary is Rs. 26,000 a month and I require around Rs. 3 lakh in next six months for marriage expenses. I also plan to own a house in future. - Dinesh Parmar, software engineer
If you're living with your family and there aren't any commitments towards household expenses, you have two options: 1) keep opening fixed deposits every month with maturity of six months (maturity of six months with the first investment, then five months next month and so on; 2) if a bank is offering a recurring deposit or RD of six months, go with that. After the marriage expense is taken care of, you can start saving for buying a house. After you have some savings towards the house, you can look at your home loan options.
(Gaurav Mashruwala is a financial planner and author of 'Yogic Wealth')
Disclaimer: The opinions expressed within this article are the personal opinions of the author. The facts and opinions appearing in the article do not reflect the views of NDTV and NDTV does not assume any responsibility or liability for the same.
Story first published on: January 24, 2017 16:07 (IST)
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