The only Life Insurance Policy is “Term Policy” where u get a lump sum for the price of the premium paid. All other bundled policies are scam. They neither give good cover not good returns.
Whenever these bundled policies are sold, they are marketed as “Invest Rs 50,000 per year for 10 years & u will get back Rs 7.5 lakhs after 15 years.” Here the cover will be for mere Rs 5 lakhs & the return on so called investment is merely 4%.
It is surprising to see these policies which offer returns ranging from 0.5 to 4% sold so shamelessly & openly. This is the reason the insurance companies never talk in ROI terms but in absolute numbers.
FF is a stage in your financial journey of life where your Passive Income exceeds your living expenses. In other words, you don’t need to pursue active job to afford your expenses.
3/ “Financial Freedom is the ability to quit your job so that u never have to work again”.
-Van K Tharp
Generally when people plan for their retirement their main focus is to find out how much corpus is sufficient for a decent retirement life. The spending part is usually ignored.
The 4% rule is one such plan which talks of the spending phase.
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The 4% rule tells us about how much a retiree should withdraw from his retirement a/c each year which shall continue to provide him a steady source of income without depleting his retirement corpus.
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