Why Sukanya Samriddhi Yojana Account alone may not be enough for your Daughter’s future?

It is a solid product. But will it be enough, is the question?

A thread 🧵to read if you have a daughter and were planning to rely on 'Only' Sukanya Yojana for her future 👇👇

(1/n) The Sukanya Samriddhi account matures in 21 years of account opening.

Some parents, for some reason, believe that the acct. maturity happens when the girl child turns 21. But that’s not correct.

Maturity happens only on the 21-year completion of account opening.

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Why Home Loan Principal gets paid off slowly in the initial years?

Here is the amortization table for a Rs 50 lakh home loan @ 8% for 25 years https://t.co/aNIhoJT3FCtwitter.com/i/web/status/1…
For this, we need to understand how home loan repayment works.

You are already aware of EMIs or Equated Monthly Installments. This EMI is made up of 2 parts.

- First is the interest component on the outstanding amount, and

- Second is the principal component.

How much do you need to invest monthly to reach Rs 1 Crore on your Child’s 18th Birthday?

A thread 🧵 with all the exact numbers for different starting ages of the child when you begin investing 👇👇

(1/n) twitter.com/i/web/status/1… And before you say that Rs 1 crore is a huge amount and why would you need that for child – please do remember that educational costs are rising. And generally, at very high inflation rates.

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How much do you need to invest in monthly SIPs, if you are saving for the following goals:

- Rs 20 lakh for House downpayment in 5 years
- Rs 50 lakh for Child’s higher education in 10 years
- Rs 5 crore for Retirement in 25 years

A thread 🧵with all exact numbers 👇👇

(1/n) twitter.com/i/web/status/1… Rs 20 lakh in 5 years for house downpayment is a short-term goal. Ideally, you should invest just in debt. But if you want some equity, then it should be small %

- At 7%, invest Rs 27-28,000 monthly
- At 8%, invest Rs 26-27,000 monthly
- At 9%, invest Rs 25-26,000 monthly

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Full EPF interest rate History 👇👇👇

EPF Interest Rate 2022-23: 8.15% (current)

EPF Interest Rate 2021-22: 8.10%
EPF Interest Rate 2020-21: 8.50%
EPF Interest Rate 2019-20: 8.50%
EPF Interest Rate 2018-19: 8.65% EPF Interest Rate 2017-18: 8.55%
EPF Interest Rate 2016-17: 8.65%
EPF Interest Rate 2015-16: 8.80%
EPF Interest Rate 2014-15: 8.75%
EPF Interest Rate 2013-14: 8.75%
EPF Interest Rate 2012-13: 8.50%
EPF Interest Rate 2011-12: 8.25%
EPF Interest Rate 2010-11: 9.50%

Debt fund taxation has been changed abruptly by the govt w.e.f. 1st April 2023.

A thread 🧵on what the change is, why it matters, why debt funds are still worth investing for some, and what you can do about it.

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👇👇👇 From 1st April 2023, all debt funds gains will be taxed at one rate – as per the tax slab of the investor. This is irrespective of the holding period. There is no differentiation in taxation for LTCG and STCG now. Everything gets taxed like STCG at slab rates.

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How much do you need to invest every month (in SIP) to reach - Rs 10 Crore in 15 or 20 or 25 or 30 years?

A thread 🧵 and a simple ready-reckoner with all the exact answers.

(1/n) If you want to have Rs 10 crore in 15 years, then:

- at 8% returns, invest Rs 2.8-2.9 lakh per month.

- at 10% returns, invest Rs 2.3-2.4 lakh per month.

- at 12% returns, invest Rs 1.9-2.0 lakh per month.

(2/n)

NSE has announced a few changes to the Nifty Next50 index composition from 31st March 2023.

A total of 5 new companies will enter the index replacing the same number of old ones.

Here are the changes being made to #NifyNext50 NSE conducts a semi-annual index review to make changes (if any) in all the indices. This time, Nifty50 itself didn't see any changes but there were 5 changes in constituents of the Nifty Next 50 Index.

A short thread 🧵on Section 80D deduction, where you can claim deductions from Rs 25,000 to Rs 1 lakh on health insurance for you and your family.

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👇👇👇 The deductions under Section 80D, are in addition to your regular Rs 1.5 lakh deduction limit of Section 80C to save income tax.

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If you invest just Rs 50,000 per year in NPS, then how much NPS Corpus will you accumulate. And how much pension will you get?

A thread🧵that shows all calculations for Rs 50,000 yearly NPS investment starting from 25, 30, 35 and 40 to the age of 670 at retirement 👇👇

(1/n) Why Rs 50,000 per year only?

Because even though NPS is designed exclusively for retirement planning, what attracts most people to NPS is the extra Rs 50,000 tax benefit it offers via deduction under the old regime.

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SIP (Trick) of 1% of the Home Loan amount.

Many call it the SIP trick to compensate for home loan interest.

What exactly is it?

Here is the thread🧵that tries to explain this simple idea 👇👇

(1/n) Suppose you take a Rs 50 lakh home loan at 8.5% for 20 years. Your EMI will be Rs 43,391 per month. The total interest you pay to the bank will be Rs 54-55 lakh.

So in total, and including principal repayment of Rs 50 lakh as well, you pay the bank Rs 1.05 Cr in 20 years

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If you take a home loan, you will realize that loan principal gets paid off slowly during initial years. This is exactly why it is better to make prepayments earlier in tenure than later.

A thread🧵on why principal gets repaid slowly initially & how to prepay smartly👇

(1/n) Just remember that when you opt for long-tenure loans (like home loans), a significant part during the first few years is only about paying interest.

That is, the interest is front-loaded.

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How much do you need to invest every month (in SIP) to reach

- Rs 1 Crore in 10 / 15 years
- Rs 2 Crore in 10 / 15 / 20 years
- Rs 5 Crore in 15 / 20 / 25 years

A thread🧵and a simple ready-reckoner to give you all the exact answers.

(1/n) If you want to have Rs 1 crore in 10 years, then:

- at 8% returns, invest Rs 54-55,000 per month.
- at 10% returns, invest Rs 48-49,000 per month.
- at 12% returns, invest Rs 43-44,000 per month.

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Finally a Tax Saver Elss Index Fund is here. Hope more AMCs follow the lead. But I think that barring a few, all other AMCs already have ELSS funds. And some are huge. And since active ELSS funds have a higher revenue impact (due to a higher expense ratio for the investors) for AMCs than passive ones, I don't think we will see too many passive ELSS funds.

Markets at New Highs. Where are your mutual fund NAVs compared to their previous highs?

A thread 🧵comparing current NAVs with 52-week high NAVs of all funds in major equity funds categories 👇👇👇

(1/n) Largecap Funds (Active)

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Nothing wrong with buying a Mercedes or doing a Rs 50K SIP. Or using SIP money to buy a Merc.

Your money. Your goals. Your decision.

But since there is a lot of noise about Mercs & SIP today, here is what a Rs 50K SIP can do for you.

A very short thread 🧵 (again!) 😉

👇👇👇 At 12% returns, this is what a Rs 50,000 monthly in SIP can do over the years -

5 years of Rs 50,000 monthly SIP = Rs 42 lakh

10 years of Rs 50,000 monthly SIP = Rs 1.1 Cr

15 years of Rs 50,000 monthly SIP = Rs 2.5 Cr

20 years of Rs 50,000 monthly SIP = Rs 4.8 Cr

What happens when you pay just 1 Extra EMI for your home loan every year?

This a short, simple thread 🧵 for those who want to get rid of their home loans but don’t have a large surplus to start prepayments.

<1/n> Paying one extra EMI every year is simple - In a year, instead of your regular 12 monthly EMIs, you try to make it 13.

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If you have a Rs 50 lakh home loan 🏡 or plan to take one soon, here is a long thread on how to manage it well. It discusses various options you can use to become loan-free quickly.

Here is the thread🧵& it highlights all possible home loan prepayment scenarios 👇👇

(1/n) When you take a Rs 50 lakh home loan, at let's say 8.5% per annum (for simplicity we assume fixed), the monthly EMIs and the total interest you pay, depends on the loan tenure.

Here's how much 👇👇

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A thread 🧵comparing Expense Ratios of Direct Plan vs Regular plan for all the major funds in different equity fund categories

👇👇 Active Largecap Funds

Liked these tips by @SandeepMall.

1 - Catch early morning sunlight. Catching early morning sun light,even just for 15 minutes, when the sun is low in the horizon, is the best thing you can do for your brain health, circadian rhythm, sleep, hormones, mood and many more things. 2 - Make daily walking a must-have habit - your mental clarity depends on it.

Long Thread on F.I.R.E.
Financial Independence & Early Retirement

#financialindependence #financialfreedom #earlyretirement #financialplanning #retirementplanning FIRE = Financial Independence Retire Early