Why it is not a good idea to depend only on pensions ? This episode highlights risks you carry in buying pension using all your savings . The loss of purchase power of fixed pension , the taxation of cash flows, inability to get back your pension pot when you need most are some of the points highlighted here . While pension is a great retirement tool , it should be approached with all the care and considerations of a prolonged retired life.
Fixed pension will lose purchase value over time.
Your Retired Life Could Be As Long As Your Work Life
Delay buying pension
1. Helps to build a higher pension corpus
2. Number of years you have to live on pension will decrease.
3. Don’t buy pension till you absolutely need it.
A CLARIFICATION :
– Start saving for pension early
– Delay the date of conversion into pension
Create other cash flows
1. Bank interest
2. Dividends
3. Rental Income
4. Managed withdrawals from mutual funds and ULIPs
What happens when you buy Pension ?
1. You will not get back your pension corpus if you need it
2. Pension corpus belongs to pension company and not you.
3. The corpus will not grow further
Don’t use all the retirement corpus to buy pension
Keep cash in other investments which can be liquidated
1. Bank FD
2. Mutual Fund Portfolio
3. Extend the maturity date of ULIP plans.
Pension you get is taxable
Try to save on the tax that you may have to pay .
1. Don’t buy a large pensions.
2. Use SWP option in equity mutual funds to benefit from capital gains exemption limit.
3. Use Debt Mutual Funds to reduce tax impact.
4. Use ULIPs to create 100% tax free cash flows.
Links to my previous videos:till now
WHY SHOULD YOU DEAL WITH MORE THAN ONE BANK ? https://youtu.be/GjDsxS2Kxuo
How to make money from stock market crash https://youtu.be/KejZ8nKpLPA
https://youtu.be/UfNQkH3cmWE CORONA VIRUS – IMPACT ON GLOBAL MARKETS – PART 1
https://youtu.be/MC5nAbWLkMo CORONA CRASH 2020 – DOS AND DON’T FOR YOUR SURVIVAL
WHAT TO BUY? SHARES OR MUTUAL FUND?
https://youtu.be/0nl9sPJBUQs
CORONA VIRUS (PART 2): IMPACT ON INDIAN ECONOMY – By Dr. Chandrakantha Bhat
https://youtu.be/Fo91G9hdXHQ
What does your portfolio valuation really mean ? https://youtu.be/VkEwq8g2oFM
6 COMMON MISTAKES DURING RETIREMENT https://youtu.be/ivus9eJWKXM
Why Investors Fail ? https://youtu.be/c8jxppcdXhs
Budget 2020: Impact on NRI’s (Part 2) Who and When Will They Get Affected?: https://youtu.be/Hq5iPSEWcAI
Budget 2020: Will NRI’s Overseas Income Be Taxed Now? (Part 1) NRI Money Clinic: https://youtu.be/uXM9AKo9HrM
Why You NEED an Emergency Fund! by Dr Chandrakanth Bhat NRI Money Clinic:
https://youtu.be/fBm8bokZI0c
Role of a Financial Planner: https://www.youtube.com/watch?v=KZPnnn3NqyM
What is the meaning of money? : https://youtu.be/AAxQ4ywScos
6 steps to generate good returns on your investments – https://youtu.be/AAxQ4ywScos
Why you should watch this channel – https://youtu.be/rgsHfw41W_8
Don’t Buy a Life Insurance Policy Until You Watch This! https://youtu.be/q0adm_CKvew
Why are your mutual funds not showing the returns?https://youtu.be/28TfBq_OGx8
NRI Money Clinic is a YouTube channel created by Dr. Chandrakantha Bhat , an investment consultant and financial planner in Dubai . It aims to spread financial literacy and educate on money matters for resident and non resident Indians . The channel discusses subjects like Fixed Deposits , Taxation , Mutual Funds , Insurance , Specific Issues pertaining to NRI community and every other investment opportunity. Dr. Chandrakantha Bhat can be reached on Whatsapp on +971 50 148 4595
Follow us on :
Website: www.nrimoneyclinic.com
Facebook: https://www.facebook.com/NRI-Money-Clinic-105599844299803/
Instagram: https://www.instagram.com/nri_moneyclinic/
LinkedIn: https://www.linkedin.com/company/nrimoneyclinic/
DISCLAIMER : Please consult your professional financial advisors before taking any action based on inputs of this video and other videos of this channel. Dr. Chandrakantha Bhat or NRI Money Clinic you tube channel is not responsible for any losses or undesirable outcome for action taken by you without proper consultation with professional advisors in the field of finance.
#nrimoneyclinic #coronavirus #marketcrash