Pension payments are a huge burden for Governments around the world. As populations age, this burden continues to grow. In the past, India (like several other nations) followed a defined benefit cum assured pension plan. Once you retired, a predefined pension was made available regularly for your post retirement needs. Over time, the realisation dawned […]
NPS (National Pension Scheme): NPS withdrawal made 100% tax free
This is the headline of one of the popular newspapers. What’s wrong with it? Not just one, there are other media outlets, which have something similar to say. Government makes NPS withdrawal 100% tax free. Entire NPS withdrawal at retirement is tax free now. Again, what’s wrong with the above? Simple, none of these is […]
Is NPS Tier 2 Account the best kept secret in savings products?
My friend Vineet’s question got me thinking. He asked if NPS Tier 2 account, with all its benefits, specially super low cost, can be used for investment instead of in a mutual fund. I decided to explore this. Now, you have mostly likely read through my earlier unpopular views on NPS. Those views were primarily […]
Why I will still NOT invest in NPS?
With the recent announcement of a long term capital gains tax on Mutual funds, investors have been looking at alternatives to make their investments. An older debate that has surface again is that if it makes sense to invest in NPS. Really? So, my friend called me again on the weekend. “Hey Vipin, couple of […]
Investing in NPS – Sending your money to life imprisonment?
I compare investing in NPS to putting your money behind bars. If this headline sounds like a clickbait to you, wait to hear about your favourite investment, NPS or National Pension Scheme and the bigger bait you are falling for. Are you investing in NPS? I have seen all kinds of investors – young and […]
Notes on PPF, VPF, NPS and Debt funds as investment options
Recently, someone pointed out to me that the PPF interest rate is now at 7.9% – the lowest in 40 years. In fact, The interest rates on various saving schemes are falling and savers are finding it difficult to decide where to put the money for getting better returns. There is a slight problem with this thinking. We tend to look […]