NPS IS NOW EEE... Invest NOW!

In the recent ruling by the government of india, the NPS has been made exempt exempt exempt( EEE) from the previous EET ( taxable when you exit the program).

This has been a major ask from all people and finally took a good step for employees and also for itself by moving to this method.

Earlier the model was at the time of closure

40% annuity
40% tax free
20% taxable

So 20% earlier which was taxable will now not be taxable!

New rules

40% annuity
60% tax free

This was a major issues for people to move to NPS vs a epf or a ppf.

Now with the power of equity kicking in over a long term , people will be much safer from a retirement perspective as they safe in NPS vs that of EPF.

Go ahead.. invest in NPS. The government has made it much more beneficial for you to have a safer more financial sound retirement that before.

Its just simplefinancialsense !

Retirement solutions

Lots of advertisements on retirement solutions now on the TV. I just saw one from birla sunlife and one from hdfc.

These become a lot more frequent when march approaches - because of tax planning.

Most retirement plans are very very conservative. I actually bought a birla platinum plus series 3 ulip almost 5 years back and am still waiting for my money to break even.

When you invest look for who the fund manager is and look for his credentials.

Understand the risks that the fund takes or doesn't take and then understand what money you will or will not make.

When you see the returns - understand that you will need a lot more than what you are expecting as of today. Use the time calculator on this blog to find out what you will really need.

Take care... happy investing