SPEED61946INVESTMENTS

E very organization offers its employees a pension scheme. The  National Pension System  was launched on January 1, 2004 with the aim of providing people with an  income after retirement . The scheme that was earlier meant only for the government employees was opened to all private employees in 2009. Under NPS, a taxpayer can invest money in pension account, will have the option to take part of the corpus as lump-sum and the remaining in the form of a fixed monthly income. At 60, NPS subscribers are allowed to withdraw 60 per cent of the corpus of which, presently 40 per cent is tax exempt. However, the government has recently proposed to make the entire 60 per cent tax free. The proposed amendment will be effective from the tax year 2019-20. The remaining 40 per cent of the money will have to be invested in monthly pension annuity plan. The NPS offers two choices to its subscribers: 1) Active Choice: where the investor can decide how to invest the money in di...

Why it is important to  buy a Life Insurance Policy? 🎯 A life insurance policy helps you get life cover for yourself and makes sure your immediate family has some financial support in the event of your death. 🎯 I t also helps to finance your children's education and other requirements. 🎯 A life insurance policy can also help you to save for the future so that you have a continuous source of income after you retire. 🎯 I t can help save your business, pay off debts and ensure that you are ready to meet any unforeseen contingencies in life. 📜Benefits of Life Insurance Plans 📜 T he death and disability benefits your loved ones can get from your life insurance policy are the biggest benefit of an insurance policy. There are other benefits too. Life insurance policies can be used as loan collateral, and can fetch you tax benefits under section 80 (C)*of the Indian Income Tax Act, Maturity proceeds are also exempt under section 10 (10)(D) of the Indian Income Tax Act, ...

L ife has many important stages, many of which require adequate finances in place. Building up a corpus for the various stages of life is absolutely essential for successful financial planning. Luckily you can prepare for the life experiences from today itself. The earlier you start saving, the bigger of a corpus you can create by the time you reach a life milestone. Financial planning starts best early on. Hence, here are some of the life milestones you should consider building a savings corpus for. 1. Living Alone In your twenties, you may move out of your house with fresh job prospects in different locations. You may seek out a roommate to live with or rent out a flat for yourself. Either way, living alone comes with its fair share of heavy expenditure. Expenditure expresses itself as rent, grocery bills, electricity costs, subscriptions to OTT platforms, commute costs, and more. Living alone costs a lot more than your rent may reveal to you upfront. So it's importan...

For most individuals, achieving and maintaining financial stability is an aspiration. However, it can be an uphill task to accumulate a substantial amount to meet your goals, especially in the initial days of earning. Understanding the need, insurance companies have come up with various innovative  life insurance  products such as the ones with guaranteed income benefits which help in building financial strength for the future. Guaranteed income plans are tailored to fit the requirements of investors who do not want to take risks that come with market linked returns. They offer the coverage of life insurance along with regular guaranteed payouts and maturity benefits. This plan can be customised to suit everyone’s needs. Salaried people who are from 18-60 years old are eligible for guaranteed income plans. The policy period extends from 10-30 years. The key difference between an endowment plan and a money-back plan is that in an endowment plan, you get the bonus a...

As the costof living continues to rise, it's becoming even more important for young individuals to start planning for their retirement as early as possible. Thankfully, there are a number of pension plans available in the market to make our golden years easier. However, before you decide on which plan you would like to invest in, here are some important things you should know about these plans: 1. There's an accumulation period From the time you purchase your  pension plan  until the time you retire is known as the accumulation phase. During this accumulation period, the premiums that you pay your policy provider will be invested in certain avenues. You can get some tax deductions on your premiums under Sections 80C and 80CCC of the Income Tax Act. 2. You have to purchase an annuity plan On your retirement, you will be able to withdraw only 1/3 rd  of the money that has been accumulated as part of your plan. You will have to invest the balance amount in an ann...

T he core strength of your finances comes from the frequency of a regular income. However, once you retire, this financial strength faces a test. It is very important to have a pension system in place, which allows you to take care of the needs of your dependent ones and yourself, after retirement.  Pension schemes   provide financial security and stability during old age when people don't have a regular source of income. Retirement plan ensures that people live with pride and without compromising on their standard of living during advancing years. These plans inculcate the habit of saving for the grey years ahead and serve as instruments of investment for this purpose. National Pension Scheme  (NPS) is one such scheme that was launched by the government of India in 2004, for allowing pension cover for the government officials. Later on, it was extended for people employed in all the sectors and included unorganized sector as well. It is one of the prime ...

E very organization offers its employees a pension scheme. The  National Pension System  was launched on January 1, 2004 with the aim of providing people with an  income after retirement . The scheme that was earlier meant only for the government employees was opened to all private employees in 2009. Under NPS, a taxpayer can invest money in pension account, will have the option to take part of the corpus as lump-sum and the remaining in the form of a fixed monthly income. At 60, NPS subscribers are allowed to withdraw 60 per cent of the corpus of which, presently 40 per cent is tax exempt. However, the government has recently proposed to make the entire 60 per cent tax free. The proposed amendment will be effective from the tax year 2019-20. The remaining 40 per cent of the money will have to be invested in monthly pension annuity plan. The NPS offers two choices to its subscribers: 1) Active Choice: where the investor can decide how to invest the money in di...