RETIREMENT PLANNING

The principle of “pay yourself first” is a financial strategy that involves allocating a predetermined percentage of your income to savings and investments before you spend any money on other expenses. This principle is a powerful tool for building wealth and managing your finances effectively. Benefits: Implementation: Example: If you earn $5,000 per month and […]

The Employee Provident Fund (EPF) is a statutory retirement savings scheme in India administered by the Employees Provident Fund Organisation (EPFO). It is a mandatory scheme for employers to contribute to for their employees. Key Features: Eligibility: Contribution Rate: Benefits: Additional Notes: FAQs

Retirement planning is a comprehensive process that involves setting financial goals, evaluating current financial standing, and developing a strategy to ensure a comfortable and financially secure post-retirement life. It encompasses various aspects, including: 1. Assessing Current Financial Situation:– Reviewing income sources, investments, savings, and debts.- Calculating current net worth and cash flow. 2. Setting Retirement […]

The word “redeposit” is not commonly used in contemporary English. It is a word that is mainly used in legal contexts. Definition: Redeposit: A sum of money paid again as security for a debt or obligation. Example: The mortgagor must redeposit the security deposit. The plaintiff redeemed the security deposit. Alternative words: Deposit Security deposit […]

Definition: Invested interest is a type of interest that is earned on investments, such as stocks, bonds, or real estate. It is essentially the return on investment that is received by investors as a result of their capital being used to generate revenue. Types of Invested Interest: Factors Affecting Invested Interest: Examples: Benefits of Invested […]

A benefit offset is an accounting technique that reduces the amount of benefits earned by a company to account for the costs associated with those benefits. It is usually used in situations where the cost of providing a benefit is significant compared to the benefit itself. Calculating Benefit Offset: Benefit Offset = Benefits Earned x […]

A power of attorney (POA) is a legal document that authorizes one person to act on another’s behalf. In the case of a POA for power of attorney, the document authorizes the attorney-in-fact to make financial and other decisions on the behalf of the principal. Key Components of a POA for Power of Attorney: Types […]

A single life payout is a type of life insurance policy that pays a lump sum to the beneficiary when the insured dies. There is no cash value accumulation component like a traditional life insurance policy, so the death benefit is the only payout. Key features of single life payout policies: Reasons for choosing single […]

Systematic Withdrawal Plan (SWP) A systematic withdrawal plan (SWP) is a strategy for gradually reducing an investor’s withdrawals from a retirement portfolio over a set period of time. It is designed to ensure that retirees have a steady stream of income during their retirement, while minimizing the impact of market fluctuations. Key Principles of SWP: […]

Definition: A hot hand is a term used in statistics to describe a phenomenon where a player or team is performing exceptionally well in a series of games or events, usually with a high probability of winning. Explanation: Hot hand: A sequence of games or events in which a player or team is unusually successful. […]