cricket and investments

Khelo App ki Cricket Investments Pe

Cricket is the most popular game in the world undoubtedly, and it’s the world’s greatest sport. It’s a gentleman’s sport, full of sportsmanship. An epic journey where players and fans get to know each other over days of play, where respect is the golden rule, and integrity is very much alive. And on the contrary, Investing in the Mutual Fund is helps you to create wealth in the long/short term and helps in achieving your financial goals.
Besides entertainment, Investing is like a game of cricket.

“Your Team→ Your Portfolio
Your Players→ Your Securities.”

In this article, let us use the analogy of a cricket game in investing. When it comes to cricket, We ‘Fans’ always feel like the cricket team could have done a better job, when it comes to us, we fail to create our investment portfolio and financial success.

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Will

The importance of making a Will

Making a will can save your loved ones a large amount of money and stress. A will is a legal document that stipulates your wishes as to who will receive your property and possessions when you die. It is important that you have a valid will to ensure your estate is distributed to those you wish.

The statistical data says that 80% of Indians do not have their wills made and the reasons for it are many. Here are some of them:

  • It’s too early to think about.
  • Making a will is a lengthy process
  • I am not aware of rules and regulations
  • I have told my spouse and children of my intentions that I will do
    And many more…..

While each person’s situation varies, here are seven reasons to have a will:

1. Avoiding dealing with family issues
Not wanting to deal with family issues is a big reason a lot of people don’t make their wills. Having to confront the issues of the past can be extremely uncomfortable so due to this reason people avoid to make a will.

2. Not ready to make important life decisions
If you think your will has been the “be all end all” document and you’re just not ready to make such huge and overwhelming decisions, think again. A will is something you create for right now not for some vague time in the future.

3. Unsure where to start
You can start by doing some research online; you can start by organizing your thought on paper, or you can start by making a will meeting a professional who can help you in making a will.

5. The belief that young people don’t need will
Sometimes making a will in the early stages of life helps a lot during emergencies. If you are making a will when you are in your 30’s that is an empowering exercise which is been taught to your children. You’re never too young to start planning. 

6. Believing that only wealthy people need will
The idea that only wealthy people need will is simply not true. Everyone needs a will whether you are old, young, rich, poor, male, female, married, single, children or you don’t have children. Moreover, if you own any property you should make a will because it’s a smart thing to do.

How to make a Will?

One should have a map of current assets – bank deposits, bonds, mutual funds, stocks, properties, gold, jewelry, vehicles, assets created overseas, books, art, wine, and whatever you want to give to your heirs. It’s always a good idea to put down details like passwords to an online bank account or in a password protected dynamic Excel sheet. Put down in writing the location of property papers and locker keys.

Once these details are done, indicate who should get what. For example, if you own two flats and want to leave one to each kid, do specify which goes to whom. If there is jewelry, mention who gets what. Maybe take pictures and specify who gets what.
Also, don’t forget to appoint an executor of the will. This could be a trusted family friend, your lawyer, your financial planner who ensures that the will is executed as per your requirements.

Why make a Will?

  • A will makes it much easier for your family or friends to sort everything when you die.
  • If you don’t write a will, everything you own will be shared in a standard way defined by the law – which isn’t always the way you might want.
  • Writing a will is especially important if you have children or family who depend on you financially.
  • After you die someone needs to help wrap up your estate. You can use the will to name an executor to carry on this task.
  • The most common and simple reason to make a will is to decide who will get your property when you die.

Do I need a Will when nominees are in place?

A common mistake done by an individual is they think that instead of making a will make the person as nomination but that does not mean that the nominee gets the assets. In your head, the nominee and the legal are the same people, but in the eyes of the law, the two could be different.

In the legal context, the nomination is only a provision for calming of the property by the nominee as a custodian, in case of the demise of the owner of the property.

The legal heir, as opposed to the nominee, is the individual who has the right and entitlement to succeed the wealth and property of the deceased individual under the signed legal will, else personal succession of law is applicable. The legal heir will be mentioned clearly in the will, as the key inheritor. The legal heir can be one person or multiple persons as well

Life is unpredictable. We really don’t know what happens tomorrow. So be prepared for unplanned events which make things easy. One should have a valid will no matter whatever your age (it’s okay to have a will at age thirty-five). One should have a rough estimate of assets and who gets what. In summary, dying without a will can mean that your loved ones are left with a financial and emotional mess to deal with.

Choose between Direct and Regular plan

Direct_plan_Vs_Regular_plan

When you buy something, you will always try to cut expenses. Suppose if we buy any product online, you prefer to have free delivery. Why you do that? In order to reduce costs, you’ll try to cut the additional expenses which you don’t want to incur. Here, you do the same with the Mutual Funds.

In the market, we can buy Mutual funds in 2 ways:

  1. Directly from Asset Management Company (AMC) – Direct Plan
  2. We choose to buy through an intermediary – Regular Plan

In Regular plan, you buy mutual funds through an intermediary such as brokers, distributors or advisors. And these agents will charge a commission for the services they provide where your expenses on investments will be high. As you know that these brokers will never sell you the products that you need. They always try to push the schemes which earn a good profit to them.

Now let’s look at Direct Plans. Direct Plan is a new regulation which is enforced by SEBI on January 1, 2013. In the Direct Plan, as an investor, you can directly buy the mutual funds from the Asset Management Company (AMC), where there will be no involvement of any brokers or intermediaries and these funds which you buy are commission free.

The great advantage of Direct Plans is that NAV (Net Asset Value i.e., the value per share) is more when compared to Regular Plan which means that you earn more on your investments.
For example, if you invest Rs 10 lakhs in both the Direct Plan and Regular Plan. The direct plan offers 17- 19% of returns whereas the Regular Plan offers 14-15% of returns. Thus, With Direct Plans you can earn 1-15% more returns than Regular Plans.

And here you have a platform to make an investment in Direct Plan- MyWay Wealth with zero commission and zero fees. MyWay Wealth offers you a wide range of funds and helps you to choose the right one that suits your investment needs. To look into more features of MyWay Wealth – download the app, complete KYC and get access to top recommended funds.Screen_Shots

How to decide on Direct plan and Regular Plan?

  • If you already have an experience of investing in mutual funds, it is recommendable to go for Direct Plan, since you will have enough knowledge on mutual funds.
  • If you are a beginner then you can opt for Regular Plan and it is recommendable that you can switch to Direct Plan once you gain knowledge and experience in investing.

So don’t miss out on those 1.5% extra return. Choose MyWay Wealth and begin your journey to fulfill your dreams.

You are unique and so is your Investment!

Understand the rules for investing in Equity

equity

Getting equity exposure is about following the rules for holding the portfolio to see index-plus returns( high returns). Take a considerate decision on investing in Equity and understand that the Equities are the best way to create wealth.

Rules for investing in Equity:

  • Have the patience to see consistent returns. If you buy equity with a holding period of 10 years, you’ll be able to see interesting returns(positive returns) in the 7th year of your investing. This happens because the fluctuation in the returns will start reducing and then on average, you’ll see returns which will above 14-15% per year. Thus, have the patience to have investments in the long term.
  • You’ll be at risk if you choose a poor product. If you opt for a poor product with a long holding period and later you find yourself that you did worse than the average product in the market. So, be careful while choosing a product and be very particular on your risk bearing capability.
  • What if you find out yourself frozen in choosing Equity products. Firstly, understand the Equities completely.

There are 3 ways to buy equity:

  1. Direct stock
  2. Market-linked products(ULIP’s)
  3. Mutual Funds.

You can invest in Equity Funds through MyWay Wealth. They are professionally managed by expert professionals who spend quality time in researching about the performance of these funds.

The benefits include:

  1. You can invest in Equity Mutual Funds that have provided returns >15% for the past 5 years.
  2. They offer you an opportunity to redeem your investments at any time (Except for Equity Linked Saving Schemes-‘ELSS’ which has a lock-in period of 3 years).
  3. Equity mutual fund schemes avail you a facility to invest small sums at regular intervals through systematic investment plans (SIP).
  • Do not invest in any product that locks you in a particular company or asset manager. Always opt for the product where the “Exit” is possible with an easy and cheap procedure. And also look for the “portability” where you should be able to move your money more easily to the better fund investment with minimum cost.
  • If you want to manage your funds by yourself, start learning about the products through online platforms and try to look in the records to know how the funds are performing over the years and then invest. Always remember, “Not investing in Equity” is not your option.

Thus, put your money to work for the long term. If you’re a good financial planner then you would have already planned for your Emergency funds and medical cover. So, you have taken away the need for keeping money in liquid and you can risk for investing in Equity Mutual Funds.

Screen shot

Here, you have the best platform -“MyWay Wealth” to invest in Equity Funds and create wealth for the long term. Use MyWay Wealth to discover, track and invest in Equity Funds.

Are investments in Real Estate really safe?

equity

We have heard our elders saying that “Invest in Real estate, the future value of the property will fetch you prosperous wealth.” Is it true?

Let us now discuss how a Real estate as an investment option.
Yes, Investment in Real Estate can generate a regular income, and you can see capital appreciation over a period of time. People think Real estate as an investment option is good only because they look only into the returns ignoring the other factors.

There are other factors that you need to consider:

  1. Risk factor: There is more risk involved if you buy a property, and risk comes in the form of property disputes, your property can be grabbed, finding the tenant becomes difficult.
  2. Additional expenses: Incurring more expenses can affect your returns. Expenses such as brokerage chargers, maintenance costs, taxes will be incurred by you. You will pay all these expenses from your returns.
  3. Low liquidity: In case of emergency, to can’t sell a part of your property and make money and also your need for cash can make you sell the property at a lower price than its original cost. Thus, you incur a loss.
  4. Market fluctuations: Yes, there has been a time where you can sell your property more than 10 times its original value but the things are changed and are not the same.

Reasons why an investor should avoid investing in Real Estate

  • An under performing asset class as it gives more or less the same returns as FDs and offers an annual rent between 2-5% which is very less when compared with the returns earned on FDs
  • The value of a property depends on the geographical location of a property which makes a real asset as an unpredictable asset class.
  • The typical mentality of investors where they link properties to memories and emotions ignoring the returns on investment.
  • Liquidity is less because when you need immediate cash, you can’t find buyers easily and need of cash can make you sell the property at a lower cost than its market value.
    They are subjected to more litigation and the risk involved is high because of property disputes or your
  • property can be grabbed.

MyWay Screen shot

Thus, these are the disadvantages of having investments in Real Estate. But is an alternative? Yes! there are better options to invest such as Mutual Funds. Direct Plans, SIPs, Gold Funds or Equity Mutual Funds help you with wealth creation in the long term. Use “MyWay Wealth” to discover, track and invest in Mutual Funds.

Don’t invest in better, invest in the best!

Why is it essential to have a Health Insurance Policy?

Family protection

“Someone is sitting in the shade today because someone planted a tree a long time ago.”

–Warren Buffett

It is rightly said that “Health is Wealth”. Planning for medical costs is one of the important aspects of your financial planning. It is very important to ensure that you and your family are secure in the future both financially and medically. It’s more challenging to meet the medical costs over your savings. If you have a “Good Policy”, there is no need to dip into your savings.
We have seen instances where people will be saying that they purchased a cover that will not bear the entire medical expenses or they purchased a wrong policy which they got know after reaching the hospital.

What is Medical cover?

Each time we go to a doctor for viral fever, we never feel that the cost is high because we choose a doctor based on our spending capacity. But when you have some serious health-related issues where the cost for the treatment is very high and you’ll be felt with the only options- paying the cost from your savings.
So, to overcome such situations we buy Medical covers where you will transfer this risk to an insurance company for a price called “Premium”. If you buy a Medical cover, you get reimbursement of what you had spent and at times you may not get the entire amount (depends on the type of cover you buy).
Buying a good medical cover is a great deal because as of today you have more than 30 companies that offer a medical cover, also you have different policies wherein you’re supposed to choose a policy that suits you by going through the entire Boucher (which we usually don’t do).

Do I need to cover?

Yes, every individual should buy a medical cover to have a secured life. Generally, we will find the need to buy cover unless we face the situation or when we realize the importance of having a cover- how it will lend you a helping hand.

  • Always buy a policy even if you are covered by your office. It’s okay to have a double insurance cover.
  • People who are covered by government i.e., government officials don’t have to buy a cover.

Who can’t buy a cover?

  • People who are aged i.e., above sixty- getting a cover is difficult. This happens because companies are reluctant to cover older people and it also reduces the choice of having a good cover.
  • People with pre-existing diseases are not covered.

How much do I need?

Again this depends on the place where to live, what kind of hospital you want to go to and other concerns which you may have.

  • Generally, everyone should have a basic cover of 3-5 lakhs. Consider 3 lakhs for people who are from a small town and 5 lakhs for the people who are wealthy.
  • For the Nuclear family- it is good to have “Family Floaters” (a health insurance plan) that provides a cover to all the members of the family. Example: if you have a family floater of Rs 15 lakhs- any one or all the members in the family can use the cover in case of hospitalization. Paying premium feels heavier but you can see the usefulness of the premium paid when you’re hospitalized.

What policy do I buy?

Before buying a policy, research about the insurance company hospital reach. You need to know if Third-Party Agent (TPA) service is good or not and know about the claim experiences. You should be aware of some policies that will not pay the entire medical expenses, this is because you would have signed up for “Co-pay” (an obligation that you have agreed upon to share the medical expenses with the insurance company).
The cheapest policies are not always a good plan. Yes, the low premium can be a factor of your choice to choose a policy but it shouldn’t be the only factor.

Performance can be judged based on three factors:

  1. Price
  2. Benefits
  3. Claims

Price:

It’s important to know the cost of the policy both in terms of present and future perspectives. When you buy a term cover your premium gets locked, but the premium of medical cover changes as you age.

  • Compare the prices of the policy of different companies as of today and observe the changes in prices.
  • Ask your agent to show the price comparison at ten years difference. Suppose if your age is 40 ask for the price of the policy as it is today when sold at 50, because your policy may cost the least today, as time flies it becomes expensive.

Benefits :

You need to find out the policy which gives at least these benefits.

  • Look for the policy that doesn’t have a “Co-pay” clause wherein you need to share a certain percentage of cost with the insurance company. You can even do this by searching on the net against policies that have a complaint related to the co-pay clause.
  • Look for a pre-existing disease clause. People with the pre-existing disease find it difficult to get a cover. It’s better to disclose your medical status, else they will have a tool in their hands to refute your claims.
  • Check if your policy has a “disease waiting period”. Usually, companies will have a period of 30-90 days during which they will not pay any claims – ”Waiting Period”.it’s better to look for a policy which doesn’t have any waiting period on the disease. Ask the company to give a list of all the diseases that fall under this clause.
  • Have a look at “sub-limits”, you have to look for this very carefully because these are the limitations on what the company will pay you. This clause will reduce the claim amount even more.
  • Know the exclusions- it’s good to get a list of all the diseases, conditions and medical services that are excluded in the policy.
  • It’s good to know on pre and post hospitalization costs that the policy will cover.
  • If you don’t make any claims in a year, you will be rewarded by the insurance company. It’s known as ‘No-Bonus Claims’ (NBC) where a certain percentage of cover will be raised for the same premium amount.

Claims:

  • Know the claim settlement history of the company.
  • Know the process for claiming the policy.
  • Look for the policy that has a good rating and also search for these parameters such as how many have made a claim and how many have complained.

What to do if you’re not getting a policy

1. Because of pre-existing diseases:

If you are not covered because of pre-existing diseases

  • You can buy a policy with sub-limits.
  • You can buy a policy which as “Co-pay clause”.
  • Buy a policy that has an exclusion period for your existing disease.

If you’re totally unable to get a policy, then you can start making investments in long term instruments, so that you would be able to cover your medical cost.

2. Because you’re aged:

Insurance companies are very reluctant to cover older people. What to do? The best way to get insured is by buying a “Top-Up Plan”, which is a kind of policy that will pay your medical expense after you pay a certain threshold amount.

3. Because of critical illness:

Critical illness like cancer can be covered as a part of the contract of your medical cover. Illness includes cancer, heart attack, kidney failure, stroke, major organ transplant, end-stage diseases of lungs and liver.

MyWay Wealth offers the purest form of life cover which is Term Insurance. Wherein you can get a cover of 1 crore to your family but just making a monthly payment between 600-700/-

Term Insurance

Hence buy Term Insurance on MyWay Wealth today and make your first step to Protect Your Family. Remember!

You have worked hard all your life, now make it work for you.

Asset Allocation is the dynamic portfolio of your investment.

Asset allocation

“The intelligent investor is a realist who sells to optimists and buys from pessimists.”

-Benjamin Graham

Asset allocation is mutual funds that are invested in a varied assets class. The asset allocation could be in the form of equity oriented, debt-oriented, or even asset classes like gold, other metals, and commodities. One can say that asset allocation is a balanced combination of a bond, equity, which includes stocks, bonds, real estate, and equity funds.

The work of the fund manager is to keep track of the investments and to make necessary changes based on market performance. We all are aware of that, equities are considered to be the highest return generating asset class. But there is the highest degree of risk involved and also a fixed deposit is considered to be less risky but we also there is a low return on investment. So investing in across different asset classes can earn returns by minimizing the risk.

The magic of diversification:

Diversification is where the money is divided into different investments to reduce the risk. Diversification is a strategy that can be summed as “Don’t put all your eggs in one basket”. You are better diversified if you spread your investments within each asset class. Which means holding a number of different stocks or bonds, and investing in different industry sectors, such as health care, consumer goods, and technology. So if one is doing poorly, you can balance it with other holding sectors that are doing well.

Feature of asset allocation

The main aim of asset allocation is to benefit from more than one asset as well as to reduce the risks that are associated with one particular asset.

Different types of asset allocation funds:

  • Static asset allocation funds
  • Dynamic asset allocation funds

Static allocation funds

Static allocation funds have a decided percentage of fund allocation in the different asset classes. One of the most popular funds is a balanced fund which invests their 65% of their assets in equities and rests in debt.

Dynamic asset allocation funds

These allocation funds return is more than fixed deposits or debt funds because they invest in equity. Dynamic funds are riskier than fixed deposits as well as debt funds. The returns from equity-oriented dynamic asset allocation funds enjoy a favorable tax treatment in comparison to debt or fixed deposits. The returns are tax-free if sold after a year.

Importance of asset allocation funds

  • Diversification

The investor can invest in different asset classes and can diversify their portfolio.

  • The investor can earn better returns

In asset allocation funds the investor can invest in different asset classes and therefore it earns better returns.

Who should invest in asset allocation funds?

We all know the equity asset class helps to beat inflation. But on the other hand equity investment are not stable funds. Asset allocation investment is been divided into two categories one is the funds which are invested into asset clause and others are invested into equities. This helps to generate stable returns while reducing the risk.

Tax for asset allocation

There is 20 percent taxation with indexation, for long term gains of 3 years and over.

The main idea of allocation of asset is to benefit the appreciation of more than one asset as well as to reduce the risk which is associated with one particular asset. However, it’s also important to make investments based on your risk appetite and investment horizon. After all, you are unique and so are your investments.

Think Before You Invest! Happy Investing!

Debt Mutual Funds Classification

Debt funds classification

Debt mutual fund invests mainly in debt or fixed income securities such as treasury bills, corporate bonds, government securities, and money market instruments that have various time horizons. Investors choose these funds as they are unaffected by market volatility, provide stability to asset portfolio, receive a tax deduction and have high liquidity. The reason behind investing in debt fund is to earn interest income and capital appreciation. Here is the debt mutual fund classification.

Types of debt funds:

1. Short term and Ultra short term debt funds

Wherein these debt funds are invested in instruments with shorter maturities, ranging between 1 to 3 years. Short term funds are for conventional investors where are not affected by the movement in interest rate. Ultra short-term mutual funds are those which invest in fixed-income earning instruments of maturity up to six months.

2. Liquid funds

Liquid funds are being invested in debt instruments with maturity, not more than 91 days. Liquid funds are risk-free funds, liquid funds are better than saving your money in the bank account because rarely they have negative returns.

3. Income funds

Income funds can also take a call on interest rates to invest in debt securities with different maturities, but often income funds are for long term maturities. The average maturity of income funds is around 5-6 years.

4. Dynamic bond funds

Dynamic bond funds keep changing portfolio composition according to changing interest. These bonds have a fluctuating average maturity period because it takes interest call into consideration and invests for longer as well as shorter maturities.

5. Gilt funds

Gilt funds are invested in government securities, where high rated securities with low risk. They provide moderate returns as they invest in an asset with better quality. Though the returns are considerable, they are not fixed as they are subjected to change due to interest rate fluctuations.

6. Fixed maturity plan(FMP)

Fixed maturity plans are closed-ended debt funds. These funds also invest in fixed income securities like corporate bonds and government securities. They are lined with time duration. An investor can only invest in the initial offer period. They are considered the same as a fixed deposit which gives tax benefits but doesn’t guarantee the returns.

7. Credit opportunities plans

These funds are newer debt funds. Unlike other debt funds, credit opportunities fund don’t invest according to debt instruments. These funds earn higher returns by taking a call on credit risks or by holding lower-rated bonds. Credit opportunities are risky than debt funds.

MyWay

To get access to top recommended Debt Mutual Funds, MyWay Wealth is a one-stop destination. From liquid debt funds which are lower risk funds, Gilt- a medium and long term which are government securities, short term – where you can park your money for 1-3 years, Ultra short term wherein you can park your money for 3-6 months, and credit opportunities wherein there are corporate bonds and debenture. All you need is a few minutes to complete your KYC process, input your contribution and you’re all set to invest in MyWay Wealth.

Real Estate vs Equity Mutual Fund Investment

Real-estate vs equity

Be aware of little expenses, a small leak will sink a great ship.

-Benjamin Franklin

When you think of investing your money, your parents would suggest investing in gold or real estate. But slowly people are getting to know what equity investment is and they select as a good tool to invest in. Earlier people used to see equity as a risky tool to invest in because they used to consider real estate as a safe investment. But the fact is both investments give a gain in the long term. But nowadays due to the instability in the market, equity is the preferred option.

From decades real estate has generated consistent wealth and long term appreciation.
Investing in stock you can receive ownership in a company. When market conditions are good, you can earn a profit.
A good compromise to choose between investing in the stock market or investing in real estate is in the hands of investors, so be wise when you invest.

Demerits of Real Estate:

  1. Low liquidity: Real estate involves risk because in case of emergency one can’t sell the property immediately. Real estate requires time to liquidate the property.
  2. The market is unpredictable: Market changes every now and then, where you can sell your property more than 10 times its original price. But that could go vise versa also. So think twice when you invest in real estate.
  3. Fear factor: There may be chances of property disputes, your property can be seized, so buying property has a fear factor.
  4. Ancillary expenses: Expenses such as maintenance cost, tax to pay, brokerage charges, and many more have to be paid.

Real estate vs. Mutual funds.

  • The risk:

We all know that both mutual fund and real estate belongs to the growth asset category, and in both risks is involved. The performance highly depends on the economy of the country. Where in comparison with real estate equity funds are less risky because equity mutual funds are diversified in nature. Where if there is a sudden change in the stock market the entire portfolio will not affect. One can switch from one stock to another and can also modify if some of the stocks are not performing well. Where diversification and switching are not possible when it comes to real estate.

  • Unpredictability:

Real estate investments are very unpredictable. We have the wrong notion that real estate is always safe to invest into but sometimes the investor may not get the expected returns as per expected him.

Mutual funds seem risky by nature but that is not true. Because there is the various category you get when you start investing in mutual funds.

  • Tracking investment is not feasible:

Unlike a mutual fund, the investor cannot track their investment in real estate.

In mutual fund tracking investments online could be an option where the growth and decline of the investment could be known by the investor.
In real estate, such tracking is not possible. This creates a risk in investment as the investor cannot track the investment.

  • Real estate needs large funds:

Real estate requires an investment of large amounts.

Where one can start with the SIP option while he is investing in mutual funds.

  • Compounding power:

In mutual funds, you have the benefit of compounding. Where this gives very good returns to the investor.

The benefit of the compounding effect will not be there if they invest in real estate. Even today real estate is considered by people as a symbol of security. And this could be debatable. As the above points suggest, that mutual funds are a better option if you consider diversifying your portfolio.

MyWay screen shot

When one invests into equity mutual fund they do get benefits to tax efficient as compared to other investment types. Investing in a mutual fund required a very small amount of money. Where in the SIP plan, money gets automated debit from ones account. As all mutual fund companies come under SEBI, the investment made in a mutual fund is safe and transparent.

Start investment into Equity Mutual funds, where MyWay Wealth is the best platform to invest your funds.

Think investment!! Think MyWay Wealth.

My Retirement Goals

retirement

“It’s better to live rich than to die rich”.

How do we know that when we hit sixty-five or seventy or eighty, there will be a skill that can throw off an income? We need to create a retirement corpus so that by age sixty we are financially free. A person is financially free when you don’t need to work to pay your bills. You should have enough assets that generate enough income today and for the rest of your life. We all know inflation is relentless, and even when the rate of inflation falls it does not mean that prices go down. They just rise more slowly. Getting the right amount of retirement is not tough to crack.

At the age of twenty-five save 25 percent of your post-tax income, at age thirty save 30 percent of your post-tax income, At forty save 40 percent. This formula works if you don’t have a single rupee saved towards your retirement, till you are forty.

Here are the retirement plans one should invest for better returns.

1. NPS(National Pension Scheme)

The national pension scheme is initiated by the central government. This scheme is where a person needs to invest in a pension account at regular intervals when the employee is working. This program is open for employees from private, public, and even for those who are working in the unorganized sector. After being retired the person can withdraw a certain amount of percentage of their funds. Wherein the person gets benefit under section 80C and section 80CCD. This scheme is portable across all the locations.

Types of NPS account

There are basically two types of NPS and they have the tire I and Tier II.

Basic information for a Tire I

  • There is no limit of the Maximum NPS contribution.
  • The maximum NPS contribution should be Rs. 250 or Rs. 500 or Rs 1000.
  • One can get tax exemption up to Rs 2 lakh (Under 80C and 80CCD)
  • There is no permit for withdrawals.
  • The status of the tire I account is Default.

NPS Tier II account

  • There is no maximum limit for NPS contribution.
  • The minimum contribution should be Rs. 250
  • There is tax exemption up to 1.5 lakh for government employees other employees.
  • For withdrawals, you are permitted here.

NOTE: The tire-I account is mandatory for everyone who opts to invest in the NPS scheme. The central government has to contribute 10% of their basic salary. For the rest of everyone else, investing in NPS is their call.

How to open an NPS account:

NPS account is been regulated by PFRDA, one can go for online as well as offline to open this account.

Offline process

The person needs to pay a fee of Rs. 125 for this.
One needs to make an investment not less than Rs. 250 or Rs. 500 or Rs. 1000 annually.
To open the NPS account manually, one should find PoP- point of presence.
Remember one should update their KYC papers in a bank.

Online process

One can invest in NPS through MyWay Wealth.
All that you need to do is download MyWay Wealth app, which is India’s most trusted app, update your KYC and start investing your funds in NPS.

MyWay Wealth app

2. Senior citizen savings Scheme (SCSS).

The senior citizens saving scheme is a scheme protected and backed by the government of India to provide regular income for senior citizens of India. Since it is provided by the government of India, this scheme is tax-free, which is been preferred amongst the retired audience.

Who can invest in these?

  • Senior citizen of India is eligible for SCSS.
  • Senior citizens of India aged 60 years or above.
  • Retirees who have opted for voluntary retirement scheme (VRS). Or superannuation in the aged bracket 55-60.
  • Retired defense personnel with a minimum age of 50 years.

Note: HUFs and NRIs are not allowed to invest in this scheme.

What should my investment amount be?

1. The minimum amount required for investment is SCSS is Rs 1000.
2. The maximum amount should be lower of the two:

  • An individual can invest up to 15 lakhs.
  • An individual can invest the amount received as a retirement benefit.

If its joint account with a spouse, then the maximum amount is 30 lakhs.

The interest rate on the SCSS account.

Interest rate

How to open an account in SCSS?

  • SCSS account can be opened in any authorized bank or post office.
  • First, the person has to fill a document for opening an SCSS account.
  • Proof-like PAN card, a passport to be presented
  • Two passport size photos.

Note: have original identity proof for verification.
Hence it’s clear that NPS provides all the features that SCSS can provide. Also, NPS allows you to earn returns anywhere between 9-15% whereas SCSS helps you earn between 8-9%. Why miss out on the opportunity to earn those extra returns? Additionally, NPS provides tax benefits where one can secure the future after retirement. You can invest your funds through MyWay Wealth after all one should spend their retirement peacefully.
Invest in NPS on MyWay Wealth and enjoy a tension free retirement.