Complaints on Indian Money Reviews - Frequently Asked Questions on Retirement

1. Complaints on Indian Money Reviews - Frequently Asked Questions on Retirement How much should you save for retirement? You can never be sure of how much you should save for retirement. It is different for everybody. Just start saving each month specifically for retirement. Time to time, make sure you increase the quantum of savings. Keep in mind your retirement goals, responsibilities and post-retirement income like rental income, pension etc. while ascertaining how much you want to save for retirement. 2. Should you start saving for retirement while in college? This can’t be bad at all. Starting early instills financial discipline in you. 3. Should you save for retirement or children’s college education first? Saving for retirement is as important as saving for children’s education. You surely want to give your children the best education you can afford. You definitely don’t want to be a burden on your children. Therefore, both should be given equal importance. 4. How to save for retirement and children's education at the same time? It's not at all easy to save for retirement and children's education at the same time. Education expenses are ever increasing. Is your income also increasing accordingly? You may think so, but don’t forget that inflation eats up most of the hike in your salary. Can you use inflation and increasing education expenses as an excuse not to plan for either one of retirement and children’s education? Can you postpone even one of the two? Postponing retirement means losing out on years of compounding power and tax-deferred growth. Postponing saving for children’s education may mean the need to avail educational loan and years of repayments along with other loan repayments. Therefore, it is important to contribute to both. This is how you can go about it:

2. Ascertain how much you wish to save up for children’s education and retirement. While working on the retirement plan, remember to include the existing estimated value of pension plans like EPF or those provided by the employer. Get a deeper insight into your financial goals. Reflect if travelling often after retirement is important to you or educating your children is important. Is it possible for you to retire early and save up for children’s education? Depending on the conclusion of your study, assess if you can afford to save for both goals simultaneously. If not, you’ll have to make some compromises: Cut unnecessary expenses, live modestly. Reduce your living standards now than in retirement. Look to increase your income. Move to a better paying position. Get a second job. Invest more aggressively keeping in mind the risks. Encourage your child to contribute to their higher education costs. They might take up part-time jobs. Encourage your children to consider scholarships. Have separate investments for both the goals. Don’t mix. Don’t use retirement and children’s education funds for any other purpose. 5. Should you invest in a pension plan if you are contributing to EPF? Yes. IT is very important to invest in a separate pension plan. EPF should be kept intact till your working life unless you quit and start a business. In this case, you’ll have to be wary of the tax implications of EPF. Also, with inflation increasing at alarming rates, it is wise to save as much as you can. Invest in Mutual Funds, Equity Funds, PPF, etc. Remember, your retirement portfolio should be diversified. It should have fixed income earning securities, debt and equity components. Consider PPF and FD to earn for fixed income. Consider debt funds to earn better returns than FDs at moderate risk. Consider ELSS to create wealth over a long-term. https://indianmoney.com/articles/frequently-asked-questions-on-retirement https://www.crunchbase.com/organization/indianmoney-2 https://www.owler.com/company/indianmoney https://indianmoneyreview.blogspot.com/ https://in.linkedin.com/company/indianmoney-com https://indianmoney.com/ 08042687207