Planning for your retirement is simple

Save Now, Spend Later: It’s true.
The more you invest today, the more (much more) you’ll have to spend when you’re 60.

The numbers are straightforward: If you invest Rs. 10,000 per month for 10 years, you will build a corpus of Rs. 27.50 lakhs at a growth rate of 15% per annum. Increase this to Rs. 12,000 per month, for the same time period i.e. 10 years, and you’ll build a corpus of Rs. 33 lakhs. Increase this to Rs. 14,000 per month, and you’ve got Rs. 38.50 lakhs.

It’s a simple matter of the time value of money and the power of compounding.
So get a grip on your spending, save more, invest more, and retire earlier and richer.

Don’t spend more than you have to on the taxman: Paying taxes can sometimes leave you with a ‘what a waste of money’ feeling. In order to avoid this feeling, and also to save and invest more money, go through the following little tips:

  • Make the most of all your deductions.
  • Save medical bills in a shoebox throughout the year and claim Rs. 15,000 worth of deductions.
  • Buy medical insurance (for the medical insurance) and claim the deduction on the premium.
  • Buy a small second apartment if you can by taking a home loan, and claim the benefit of principal and interest repayment.
  • If you live in a rented apartment, see if you can restructure your salary to claim the maximum HRA possible.
  • Invest in your PPF account and don’t withdraw from it until you retire.

Our website has a number of articles on how to save tax using Section 80C and other deductions, go through them and see which ones you can use. Remember, a penny saved (in this case from the tax man) is a penny earned. You can start off with our article on 4 Quick and Easy Ways to Save Tax