It is evident that money is very important to humankind. It is human tendency to want more hence, man is constantly searching for means and ways through which, he can multiply his earnings and increase his financial worth.
Mutual Funds are a great option that is not too heavy on the pocket. It involves the pooling in of funds from a number of people and investing it into bonds, stocks and assets of a company. As the costs are shared among a number of people, these shares become affordable. They are considered to be a safer option when compared to regular shares.
In order to aid citizens, investing in mutual funds, the Government of India has started the RGESS (Rajiv Gandhi Equity Savings Scheme). This scheme provides tax benefits to investors with an annual income of less than twelve lakhs. A 50 % deduction on the amount invested is provided up to a total of Rupees 25,000. The tax benefits are offered for a period of 3 years. This is a great way to increase profits.
Investing in mutual funds is a relatively safe manner in which you can earn profits, it is important to think about the long run. You are not going to be working forever hence, planning for your golden years, becomes very important. After you reach the age of 60, you will no longer be entitled to a monthly salary. You will have to fall back on your savings, in order to support yourself.
It is a good idea to use a retirement planner, in order to reach the final amount, you should have saved in your bank account, by the time you are sixty. When you have a figure in mind, it is an added motivation, which can be used in order to reach your goal.
As a rule of thumb, 10% of your income must be set aside for retirement. The Employee Provident Fund deducts 12% of your salary and sets it aside in a separate account. An equal amount is contributed by your employer. As this money is automatically cut from your paycheque, you learn to live without it, at the same time you save a substantial amount for the future.
This amount of money is strictly for retirement, it should not be used for any other purposes unless it is absolutely necessary. It is good to maintain a separate savings account, in case there is a sudden need for money, you can easily withdraw funds from this account.
While planning for the future, there is a lingering fear that you will outlive your savings and will have no funds to survive on. This is why it is important to start planning well in advance. Ideally you should start preparation in your late twenties. You should save at least twenty times your annual income at the time of your retirement. This will help to make sure that you are independent and live a comfortable life even after retirement.
Mutual Funds are a great option that is not too heavy on the pocket. It involves the pooling in of funds from a number of people and investing it into bonds, stocks and assets of a company. As the costs are shared among a number of people, these shares become affordable. They are considered to be a safer option when compared to regular shares.
In order to aid citizens, investing in mutual funds, the Government of India has started the RGESS (Rajiv Gandhi Equity Savings Scheme). This scheme provides tax benefits to investors with an annual income of less than twelve lakhs. A 50 % deduction on the amount invested is provided up to a total of Rupees 25,000. The tax benefits are offered for a period of 3 years. This is a great way to increase profits.
Investing in mutual funds is a relatively safe manner in which you can earn profits, it is important to think about the long run. You are not going to be working forever hence, planning for your golden years, becomes very important. After you reach the age of 60, you will no longer be entitled to a monthly salary. You will have to fall back on your savings, in order to support yourself.
It is a good idea to use a retirement planner, in order to reach the final amount, you should have saved in your bank account, by the time you are sixty. When you have a figure in mind, it is an added motivation, which can be used in order to reach your goal.
As a rule of thumb, 10% of your income must be set aside for retirement. The Employee Provident Fund deducts 12% of your salary and sets it aside in a separate account. An equal amount is contributed by your employer. As this money is automatically cut from your paycheque, you learn to live without it, at the same time you save a substantial amount for the future.
This amount of money is strictly for retirement, it should not be used for any other purposes unless it is absolutely necessary. It is good to maintain a separate savings account, in case there is a sudden need for money, you can easily withdraw funds from this account.
While planning for the future, there is a lingering fear that you will outlive your savings and will have no funds to survive on. This is why it is important to start planning well in advance. Ideally you should start preparation in your late twenties. You should save at least twenty times your annual income at the time of your retirement. This will help to make sure that you are independent and live a comfortable life even after retirement.
Source...