Many senior citizens 'underestimate the impact of inflation, taxation, health-related expenses, and the heavy premium they will have to pay on health insurance.'
Keep track of your foreign remittances to avoid giving incorrect declarations as these could be held against you.
The choice should depend on the size of the retirement corpus, stage in life, and state of health.
Be wary of co-operative banks which have historically been most vulnerable.
A term plan's premium is lower than that of a wholelife plan.
'Investors don't have to worry about underperformance in passive funds, which earn market-equivalent returns.'
Senior citizens should avoid putting their entire retirement corpus in SCSS.
Before opting for this scheme, consider how EPS is calculated.
'Non-par plans returns are not market-linked. Hence, they can offer guaranteed returns.'
Remember, pension from EPS will be taxable at slab rate, reducing the post-tax income for people who remain in the higher tax brackets after retirement.
Buy from an established agent rather than a novice who may not be around when you need his assistance.
Avoid discontinuing your SIPs. Persist for at least 7-10 years.
Avoid discontinuing your SIPs. Persist for at least 7-10 years.
If you pledge market-linked instruments and their value plummets, you will have to provide additional collateral, points out Sanjay Kumar Singh.
One of the biggest advantages of index funds and ETFs is their low cost, points out Sarbajeet K Sen.
If a retail investor wants exposure to a healthcare ETF, it should be a part of his satellite portfolio, suggests Sanjay Kumar Singh.
Stick to low-cost ULIPs launched in the past few years. Go with an insurer with a good investment team and solid track record of long-term returns, suggests Sanjay Kumar Singh.
When looking for alternatives, consider several parameters -- your investment horizon and liquidity requirement, post-tax returns, and risk.
Allotment could be low, and expected listing-day gains can quickly morph into losses if sentiment takes a turn for the worse
LIC is currently allowing customers to revive policies that have lapsed for more than two years.
Tax planning should not be left for March. If you do so, you could face a severe cash crunch in that month, warns Sanjay Kumar Singh.
Incomes such as dividend, interest on tax-free bonds, eligible gifts, etc should also be reported even though they are tax exempt, suggests Sanjay Kumar Singh.
'Avoid taking excessive credit risk via mutual funds such as high-yield fixed maturity plans and credit opportunity funds.'
These funds carry low risk and should be able to beat the returns from fixed deposits.
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