Worried about post-retirement costs since you won't be actively earning then? If you start saving for this stage of your life, you can enjoy your golden years and even maintain a good lifestyle without financial constraints. Here are some useful ways to save for your retirement.
Prioritise Saving over Spending When you are young and earning enough to afford a great lifestyle, you may tend to keep increasing your expenses. This is when you should stop and consider whether you have started saving and if so, whether you are saving enough for your future. The first step to take is to plan a budget. Separate your wants from your needs and make a total of all your important regular expenses. Keep enough money at hand to finance these costs. Then plan to fulfil your wants one at a time and not overspend over a short period. Fix a budget for your expenses accordingly and try to stick to it. The rest of your income should go into your savings. Even better, you can open a separate account dedicated to save for your retirement. Also, try to pay off any liabilities like loans as early as possible. If the debt doesn't get accumulated now, it can't affect your post-retirement years. With less debt burden, you can save more effectively. Consider How Much You Wish to Save You must have certain goals that you wish to fulfil after you retire. These can include buying a dream home for your golden years and traveling to different places. Also, keep in mind unpredictable financial needs like medical emergencies. You need to save for all these ends. Consider the rates of inflation to expect in the coming years. That is because future inflation can adversely affect your purchasing power during your post-retirement life. Therefore, conduct extensive research on the expected rates of inflation over the years to come. Adjust your savings goals according to the expected inflation. Then try to figure out how much you should save for your retirement. If you need help, consider using a pension calculator on the website of a reputed provider of retirement plans in India. Start Investing in a Pension Plan Why invest in a retirement plan instead of solely opening a savings account for the golden years? That is because, unlike a good pension plan, the latter cannot offer you high returns that would need when you are no longer having a steady source of income. Consider choosing a renowned insurance provider in India and start investing in a suitable retirement plan. Such a provider allows you to choose the pension tenure and instalment and receive regular income after your retirement while also ensuring financial security for your family along the way. You can make a one-time payment and enjoy guaranteed payouts for life to ward off financial worries. It's never late to start saving. Consider investing an adequate amount in a good retirement plan today to financially secure your golden years. An online pension calculator can make it easy for you to decide the right amount to save for the future.
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With the advancement in technology, more and more people are now benefitting from web check-in. Web check-ins help passengers to check in at home and eliminate the requirement of joining long queues at the airport. Web check-in has various other benefits as well, like saving your precious time, easy selection of seats, and quick check-in facilities.
The web check-in of most aircraft opens its windows 24 hours in advance of the flight’s scheduled departure. If you are new to the world of online check-in, then this article is just for you. The simple guideline will help you to do online check-in for your desired flight efficiently. 7 Steps to Successful and Easy Web Check-in to Follow Save yourself sufficient time by choosing online check-in for your chosen flight. Web check-in is completely hassle-free and ensures a smooth way of checking in for their flight from the comfort of your home.
Once the website opens, press the ‘Book’ option. Select the ‘web check-in’ option from the site’s dropdown menu.
The airport officials might evaluate your test your claims on the application form on the travel date. The online flight check-in will happen digitally after you have completed the self-declaration application.
These are essential steps to ensuring smooth and easy website check-in procedures. Online flight check-in helps you to breeze through the airport procedures and board your flight hassle-free. Debt funds are mutual fund schemes that invest in fixed-income instruments. These instruments usually have a low-cost structure, high liquidity and stable returns. They are considered less risky than equity-based funds due to their less volatile nature. This is why they are considered a good investment option for those with a low-risk appetite.
This type of mutual fund is also popular because it brings stability to an investment portfolio, while being highly liquid. In addition, there are no tax or TDS deductions on the earnings. The top debt funds tend to offer better ROI than other low-risk investments, such as like fixed deposits and recurring deposits. Also, they come with lower transaction costs than other mutual funds. However, to choose the best mutual fund to invest in, you should know the yield to maturity rate of the fund. Yield to Maturity in Debt Funds Yield to maturity (YTM) in debt funds is the total expected return an investor earns at the end of the maturity period. It is expressed as an annual rate. For example, if an investor holds ₹1,00,000 in a debt fund for 5 years at an expected interest rate of 10%, it means that they will earn ₹10,000 per year. After 5 years, they will get back the total interest earned along with the principal amount, minus the expenses associated with the debt scheme. The yield to maturity rate tells you what this amount is likely to be. Calculating Yield to Maturity The below formula is used to calculate the YTM of debt mutual funds: YTM = Yield to Maturity Annual Interest = Interest payout by the bond Face Value = The price at which the bond was issued Price = Bond’s current market price Maturity = Number of years till bond’s maturity YTM Keeps Changing With changes in market conditions, the yield to maturity also changes as it is an indicator of returns. Debt funds invest in multiple types of bonds. Even if the market condition of any single bond changes, it could affect the complete debt fund. The intensity of the impact will depend on the weightage of the individual bond in the portfolio. Why Calculate YTM?
Although YTM is calculated through assumptions and estimation, it can still help investors make an informed investment decision. |
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August 2023
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