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Top LIC Pension Plans for Retirement Planning

Shitanshu Kapadia
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0
Top LIC Pension Plans for Retirement Planning

lic pension plans

A pension plan is one of the most popular ways to save money for retirement. Pension plans offer dual benefit of pension and insurance cover. Pension plans are also known as retirement cum investment plans. In this plan you need to contribute via monthly, yearly or onetime payments and you can get steady monthly income or lump sum money post your retirement.

Pension plans help you to secure your financial future post-retirement.  There are multiple pension plans available in the market with different annuity options. It is advisable to select a retirement plan based on your retirement goals. E.g. if you want to retire early, your corpus upon maturity should be enough to support additional years. In addition to your retirement goals, you should also evaluate a plan based on annuity, return, premium payment flexibility, pension guarantee, risk coverage, and additional benefits.

LIC offers a number of pension plans. In this post, we will discuss Top LIC Pension Plans for retirement planning. In addition to that, we will also look at tips to choose the right pension plan.

What is Pension Plan?

A pension plan is a retirement insurance policy/scheme that offers regular income and bonus, post-retirement at a low premium. It is investment cum insurance plan.

Types of Pension Plan in India

Types of Pension Plans available in India are given below.

Deferred Annuity – A deferred annuity plan allows you to accumulate corpus via regular or single premium over a policy term. Pension begins at the end of term.

Immediate Annuity – Immediate annuity scheme allows only lump sum one time investment. Pension begins immediately at the end of policy term. You can get benefit of tax exemption on the premium paid.

Annuity Certain – Under annuity certain scheme pension is disbursed for a specific period. The policyholder is allowed to select the period. The nominee can claim the pension after the death of the policyholder.

With Cover Pension Plan – With cover pension plan comes with life cover component. This means that on the death of the policyholder, a lump sum amount is paid to the family members. The coverage amount in this case is not very large.

Life Annuity – Life Annuity plan is plan where pension is paid till death. If option of with spouse is selected spouse will continue to receive pension on the death of policyholder.

National Pension Scheme – NPS scheme is backed by the government of India. National pension scheme allows you to invest your money in equity and debt market based on your preference. You can withdraw 60% of money at the time of retirement and remaining money you need to use for buying annuity.

Guaranteed Period Annity Plan – Under this scheme, annuity is given to the life assured for certain period like 5,10,15 or 20 years irrespective of survival of policy holder.

Top LIC Pension Plans for Retirement Planning

LIC offers multiple pension plans such as LIC Jeevan Nidhi, LIC Jeevan Shanti, Jeevan Akshay etc. Details of LIC pension plans are given below.

LIC Jeevan Nidhi

LIC Jeevan Nidhi is launched by LIC in the year 2013. LIC’s New Jeevan Nidhi Plan is a conventional with profits pension plan which provides death cover during the deferment period and offers annuity on survival to the date of vesting.

Eligibility Conditions –

  • Minimum Basic Sum Assured :  Rs.1,00,000
  • Maximum Basic Sum Assured :  No Limit
  • Minimum Entry Age  :  20 years (nearest Birthday)
  • Maximum Entry Age :  60 years (nearest birthday)
  • Policy Term :  5 to 35 years
  • Minimum Vesting Age :  55 years (nearest birthday)
  • Maximum Vesting Age :  65 years (nearest Birthday)

Benefit on Vesting – On vesting an amount equal to the Basic Sum Assured along with accrued Guaranteed Additions, vested Simple Reversionary bonuses and Final Additional bonus, if any, shall be made available to the Life Assured. It gives two different options one is to purchase immediate annuity plan or to purchase new single Premium deferred pension product from LIC.

Benefit on Death – If policyholder expires during the first five policy years, basic sum assured along with accrued Guaranteed Addition shall be paid as lump sum or in the form of an annuity or partly in lump sum and balance in the form of an annuity to the nominee.

In case if policy holder expires after first five policy years, basic sum assured along with accrued Guaranteed Addition, Simple Reversionary and Final Additional Bonus, if any, shall be paid as lump sum or in the form of an annuity or partly in lump sum and balance in the form of an annuity to the nominee.

LIC Jeevan Shanti

LIC Jeevan Shanti is pension plan launched by LIC in the year 2018. LIC Jeevan Shanti is a Single Premium Guaranteed Pension Plan (Plan 850). It is a non-linked, non-participating, one-time investment annuity plan wherein policyholder can select from the immediate pension or deferred pension options. This means you can start receiving pension either immediately on the maturity of this policy or at deferred annuity option.

Eligibility Conditions –

Immediate Annuity

  • Minimum Age – 30 years
  • Maximum Age – 85 years
  • Min Annuity – Rs.1000 monthly, Rs.3000 Qly, Rs.6000 Half yearly and Rs.12000 yearly
  • Minimum Purchase Price – 1.5 Lakh

Deferred Annuity

  • Minimum Age – 30 years
  • Maximum Age – 79 years
  • Maximum Vesting Age – 80 years
  • Min Annuity – Rs.1000 monthly, Rs.3000 Qly, Rs.6000 Half yearly and Rs.12000 yearly
  • Minimum Purchase Price – 1.5 Lakh

There are multiple annuity options under this plan.

The annuity options under immediate annuity are given below.

  • Option A Immediate Annuity for life
  • Option B Immediate Annuity with a guaranteed period of 5 years and life thereafter
  • Option C Immediate Annuity with a guaranteed period of 10 years and life thereafter
  • Option D Immediate Annuity with a guaranteed period of 15 years and life thereafter
  • Option E Immediate Annuity with a guaranteed period of 20 years and life thereafter
  • Option F Immediate Annuity for life with return of Purchase Price
  • Option G Immediate Annuity for life increasing at a simple rate of 3% p.a.
  • Option H Joint Life Immediate Annuity for life with a provision for 50% of the annuity to the Secondary Annuitant on the death of the Primary Annuitant.
  • Option I Joint Life Immediate Annuity for life with a provision for 100% of the annuity payable as long as one of the Annuitant survives.
  • Option J Joint Life Immediate Annuity for life with a provision for 100% of the annuity payable as long as one of the Annuitant survives and return of Purchase Price on the death of the last survivor

The annuity options under deferred annuity are given below.

  • Option 1 Deferred annuity for Single Life at vesting age
  • Option 2 Deferred annuity for Joint Life at vesting age

Pradhan Mantri Vaya Vandana Yojana

LIC Pradhan Mantri Vaya Vandana Yojana is pension scheme notified by the government for the senior citizen above 60 years. It is government subsidized pension scheme which shall provide an assured return of 8% per annum payable monthly (i.e equivalent to 8.30% per annum) to the pensioner surviving during the policy term of 10 years. Pradhan Mantri Vaya Vandana Yojana is a single premium payment pension plan. This pension plan offers an option to choose either the amount of pension or the Purchase Price. The last date of applying for this policy is up to 31st March, 2020.

Eligibility Conditions –

  • Minimum Entry Age – 60 Years Completed
  • Maximum Entry Age – No Limit
  • Policy Term – 10 Years
  • Maximum Purchase Price – 15 Lakh

Benefits –

Pension payment – On survival of the pensioner during the policy term, Pension shall be payable as per selection of mode.

Death benefit – On the death of the policy holder during the policy term, the purchase price shall be returned back to the nominee.

Maturity benefit – On survival of the pensioner to the end of the policy term, Purchase price and final pension instalment shall be payable.

Tips for the selection of Right Pension Plan

Few important tips while shortlisting pension plan are given below.

  • Make estimate of future financial goals. Consider your current expenses and expected future expenses while evaluating pension scheme.
  • Evaluate all available plans, read the benefit offered by the plan post retirement and select plan accordingly.
  • Don’t invest in the pension plan for the sole purpose of saving tax.
  • Know other Investment options and select the best investment option based on safety of capital and returns.

If you think any of above LIC pension plans are suitable for requirement start investing.

Best Mutual Funds for Child Education in 2021

Shitanshu Kapadia
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0
Best Mutual Funds for Child Education in 2021

Best Mutual Funds Child Education – We always dream to give the best education to our child but do we really think about the growing cost of child education? We want a child to become doctor, engineer or businessmen but do we really plan for it? As per me saving for child education is the most important goal for parents. Other goals like buying a car or buying a home can be compromised, but we should not compromise our child education.

As you know that the cost of Education in India is growing like anything. To meet expenses of higher education, you need to arrange more funds either from your own pocket or you need to borrow the money. The only way to finance your child education in the future is sound financial planning and investment strategy.

Mutual Fund is one of the best and preferred investment option for child education. By investing in mutual funds, you can help your child to achieve his or her future dreams. In this post, I will share Best Mutual Funds for Child Education in 2021. Before disclosing best mutual funds for child education let’s try to estimate – How much money will be required for Child Education in Future?

Also Read – How to Find Best Child Education Investment Plan

Estimating Cost of Child Education in the Future

The cost of education in India is rising at an unprecedented rate. The reason for this is very simple.

A lack of policy by the government to regulate private school and colleges. Moreover, the shortage of physical infrastructure and a highly qualified teacher is another problem. A teacher to student ratio is very high and teachers are not well trained. In most of the school and colleges, teachers do not teach in their regular classes and create a situation where students are required to opt for tuition. All these things ultimately cause an increase in education cost in India.

As per rough estimates, the cost of education is increasing by 10% on annual basis. On conservative estimate engineering course that costs 6 Lakh at present will likely to cost 15 Lakh after 10 years. Similarly, an MBA course costing 10 Lakh will cost 25 Lakh after 10 years.

Data shows that fees of premier institute IIT for engineering have increased by five times in the last 10 years. IIT (B.Tech) fee was 2.28 Lakh in 2008 and now it is 10 Lakh. Similarly, fees of IIM for PGP course has nearly doubled. A fee of PGP course in IIM Ahmedabad was 11.5 Lakh in 2008 and today it is costing 19.5 Lakh.

cost education india

Forget premium institute like IIM and IIT, an average fee of Engineering course is roughly Rs 6 Lakh today, five years down the line it would be close to double meaning Rs 12 Lakh. In 10 years’ time, it’s likely to cost around Rs 20 Lakh.

The growing cost of education has no dead end. The options left with you succumb to the situation by taking education loan or plan for child education.

A mutual fund is one of the best investment options in India for child education planning. Here is a list of Best Mutual Funds for Child Education in India.

Also Read – Cost of Child Education – Planning & Calculator

Best Mutual Funds for Child Education in 2021

Shortlisting method for Mutual Funds –

  • Type of Funds -The first factor for the shortlisting is a type of fund like large cap, small cap, mid cap, and balance etc. I have tried to shortlist fund in all categories.
  • Fund performance – The second factor used for shortlisting of a fund is the fund performance. I have selected the best performing fund 5-10 years’ time frame.
  • Benchmark – I have taken into consideration the performance of the fund against a benchmark index.
  • Fund Rating – Another factor of shortlisting is fund rating. Higher the fund rating better is fund. I have considered a rating given by Value Research. The fund rating above 3 stars is considered.

Some of the funds might be a repetition of earlier recommendations. My recommendations are divided into three parts long term, medium term, and short term.

Long Term – Child Age 0-5 Years

Suppose you are planning for child education for the newborn baby or for child up to age 5 years. Your child will enter the graduation phase at the age of 18 years. This means you have a couple of years in hand. To be precise you have 13-18 years’ time frame. You should plan to invest in large cap, mid cap and small cap funds that offer the highest growth potential.

First step is to estimate child education cost in the future. You can take reference from the above section. Once you arrived at the required corpus second step is to calculate monthly investment amount required.

Case – 1

  • Age of Child – 0 Year
  • Corpus Required – 20 Lakh after 18 Years
  • Expected rate of return by Mutual Funds – 15%

SIP Amount required in the above case would be Rs.2100.

Case – 2

  • Age of Child – 5 Year
  • Corpus Required – 20 Lakh after 13 Years
  • Expected rate of return by Mutual Funds – 15%

SIP Amount required in the above case would be Rs.4600.

Here are few recommended Mutual Funds for long term investment. These mutual funds are mix of large cap, mid cap and hybrid.

best mutual funds long term

Note – Above mutual funds returns detail is as on Feb,2019.

Medium Term – Child Age 6 -10 Years

Suppose you are planning for child education for the child in the age group of 6-10 Years. This means you have 8-12 years’ time frame. You should plan to invest in large cap, multi cap and Hybrid funds.

You need to follow a similar method given in the section above to arrive at corpus figure. The only change here would be age of the child and required time frame for investment.

Case – 1

  • Age of Child – 6 Year
  • Corpus Required – 20 Lakh after 12 Years
  • Expected rate of return by Mutual Funds – 15%

SIP Amount required in the above case would be Rs.5500.

Case – 2

  • Age of Child – 10 Year
  • Corpus Required – 20 Lakh after 8 Years
  • Expected rate of return by Mutual Funds – 15%

SIP Amount required in the above case would be Rs 11500.

Here are few recommended Mutual Funds for medium term investment. These mutual funds are mix of large cap, multi cap and hybrid.

 best mutual funds medium term

Note – Above mutual funds returns detail is as on Feb,2019.

Short Term – Child Age 11-15 Years

Suppose you are planning for child education for the child in the age group of 11-15 Years. This means you have 3-7 years’ time frame. As this time frame is very low it is advisable to invest in mix of debt fund and hybrid funds.

Here are few Best Mutual Funds for short term investment. These mutual funds are mix of debt fund and hybrid funds.

best mutual funds short term

Note – Above mutual funds returns detail is as on Feb,2019.

Food for Thought 

A purpose of this article is not to increase your worry about the cost of child education but make yourself aware of the situation so that appropriate step can be taken.

Do share your experience and views about the cost of education by adding comments.

Credit Card Approval Tips & Strategy

Shitanshu Kapadia
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1
Credit Card Approval Tips & Strategy

Getting a Credit Card Approval is a difficult task especially if you are from a low-income group, student, housewife or self-employed. One of my colleague working in private company has applied for a credit card. He submitted all necessary documents along with the credit card application. He was very keen to use a credit card. However, his application got rejected. He was upset and looking for ways to get credit card approval.

If your credit card application is rejected or if you are applying for a new credit card here are tips and strategy that you can use to get fast credit card approval. Before taking a look at tips & strategy let’s look at major benefits of credit cards.

Also Read –15 Best Credit Cards in India 2019

Benefits of Credit Cards

#1 Free Credit Period

A first benefit of holding a credit card is the free credit period. Credit Card Company gives free credit period from 20-50 days. During this period credit card companies do not charge any interest to the cardholder. This means you can use money without paying extra interest.

#2 Credit Card Rewards

Another benefit associated with credit care is credit card reward points. Every credit card company offers reward points for doing shopping with a credit card online and offline. You can redeem reward points for a gift, shopping voucher etc.

#3 Cashback Benefits

Cashback is one of the best ways to save money. Cashback means getting money back. Some credit card offers cash back benefit on specific product and category. The benefit of cashback is generally fixed. However, new cashback offers are announced by credit card companies regularly.

#4 Travel Miles

A travel credit card is a special category that allows you to earn travel miles. The travel miles can be redeemed for an air ticket discount. To redeem air miles, you should have sufficient air miles as a balance.

#5 Discount on Online Shopping

Online websites offer big discounts on online shopping. The discount is offered on various categories such as grocery, movie, food, travel etc. Some offers are available for the long term and some offers are given during limited period like festival sale etc.

Also Read – 10 Best Credit Cards in India to Save Money

Credit Card Approval Strategy

A credit card company evaluate potential credit card customers based on multiple parameters. Few important parameters for getting credit card approval are –

# Your Salary/Income

# Your Past Credit History/Credit Score

# Your Relationship with Bank

# Credit Card Type (Secured Credit Card)

# Saving Bank account & Transaction History

Let’s try to understand these parameters in detail.

#1 Your Income level is Important for credit card approval

When you apply for the credit card you need to provide your income details in the application form. In addition to income detail, you need to provide your age, city, take home, type of employment in the application form. All these factors determine your chance of getting a credit card.

Out of all these factors, the income level is the most important factor for consideration. Your income determines your capability to repay your dues in a timely manner.

There is no predefined salary/income limit for issuing a credit card. However, in general you should have at least a salary/income above Rs.20000 per month to avail basic credit card. Higher the income level better is the chance of getting approval. Someone earning Rs.80000 per month is more eligible compared to a person earning Rs.25000 per month.

Make sure to check minimum income eligibility criteria before applying for the credit card. You need to submit income proof and latest ITR copy for income proof.

#2 Your Past Credit History or Credit Score

Another important factor of consideration when it comes to credit card approval is credit score and credit history. CIBIL credit report contains your credit score and credit history. It contains detail of loan taken by you including repayment and default history. Make sure to check your credit report once before applying for credit card. Checking credit score online is easy and free.

#3 Your Relationship with Bank

Your relationship with bank matters a lot when it comes to getting credit card approval. This means if you have an existing salary account with a bank or fixed deposit it becomes relatively easy to get a credit card.

This is because the bank can easily extract information about you. The longer and deeper association with the bank increases the chance of getting a credit card from that bank.

#4 Credit Card Type (Secured Credit Card)

There are many banks which would give you a credit card against fixed deposits. These are secured credit cards with a credit limit equal to the amount of fixed deposit you have with the bank. This arrangement has dual benefits. You get a credit card and you get a chance to improve your credit history by paying your dues in time. This is the best way to get credit card approval.

The minimum fixed deposit required for the secured credit card is Rs.20000. No income proof is required to get a secured credit card against a fixed deposit.

#5 Your Saving Bank account & Transaction History

Your saving bank account & bank transaction history also matters for getting a credit card. If you are maintaining minimum average balance and doing frequent transactions, your chance of getting approval of credit card is high.

Credit Card Approval Tips

  • You should check minimum income eligibility conditions before applying for credit card.
  • If you don’t have repayment history you should opt for secured credit card.
  • It is a good idea to apply for the credit card at a bank where you are holding a salary account.
  • If your profession is risky such as journalist, police, lawyer your application is likely to get rejected. In such a case, it is advisable to opt for a secured credit card.
  • Don’t lie about your income level.
  • If you are self-employed working from home than also it is recommended to give different work address.
  • Don’t keep on applying for the same credit card if you get rejected once. Give a gap of at least 6 months, preferably 12 months.

Best Credit Cards for Salaried

If you are salaried and planning to apply for the credit card. Here is a list of few best credit cards for salaried –

  • Standard Chartered Titanium
  • Standard Chartered Manhattan Credit Card
  • SBI Simply Save Card
  • ICICI Coral Credit Card

Best Credit Card for Self Employed and Businessmen

If you are businessmen and planning to apply for the credit card recommended credit card list is given below.

  • SBI Corporate Platinum Card
  • My Business Credit Card Axis Bank
  • Citibank Premier Miles

Select the credit card based on your requirements.

Summing Up

Getting a credit card approval is not difficult process if your credit score is good and you have all documents.

Follow the tips and strategies given above to get credit card approval.

If you are facing any challenges for credit card approval, feel free to share it in the comment section given below.

Top 10 Real Online Jobs for Online Money

Shitanshu Kapadia
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0
Top 10 Real Online Jobs for Online Money

real online jobs

Searching for real online jobs for making online money in 2020?  If yes, you are in the right place. Today I will share Top 10 Real Online Jobs for Online Money.

Making money online is child’s play. There are many people who are living their life with online money. They are making millions of dollars every year. So, there is no shortage of online money. But the Internet is becoming a crowded place. It is difficult to find out a real online job for making extra money. There are thousands of websites that promise to pay money, but in the end, they seem to be bogus. But don’t worry there are many websites that pay you for your time and work. I call them real online job websites.

The online jobs offered by these websites are so simple that can be started by anyone. There is no need of special qualification, experience or technical knowledge to start these jobs. Anyone starting from a student, housewife, unemployed, working professional and retired person can start making money by using these websites. You just need to invest your time and you can earn several dollars.

So, what are you waiting for? Select online job of your choice and start making money online.

Online Jobs for Students – Easy without Investment

Top 10 Real Online Jobs for Online Money

#1 Amazon MTurk

One of the best real online jobs to make online money is Amazon MTurk. You can simply type Amazon MTurk on Google and you can land to MTurk website. It is also known as Amazon Mechanical Turk which enables you to make some real money online. You have to complete a few simple tasks using MTurk to make money in return. The pay range is from $0.20 to $5 per job/task. The tasks are like data entry, captcha solving, survey etc.

You can sign up for free on this website. You are allowed to transfer money from amazon to verified bank account after 10 days of submission of the first task.

#2 Microworkers.com

Microworkers.com is the second website that provides an opportunity for earning a lot of money online. It is an online platform that connects employers and workers from around the world. This site offers micro jobs such as data categorization, data tagging, data matching, content evaluation, surveys, filling up form, provide rating etc. This site is similar to Amazon MTurk. Joining this site is completely free. It is an international site. Anyone from any country can earn money from this website.

When your account balance reaches to $9, you will be allowed to withdraw money to your PayPal or bank account.

20 Online Data Entry Jobs from Home

#3 SoftwareJudge.com

SoftwareJudge.com is the next website that offers real jobs online. As the name suggests this website pays money for your reviews about software. If you are using software for long and you have a strong opinion about software this website is for you. You will be paid here for submitting your reviews.  You can earn even up to $50 per software review. You can create your account in free and start submitting your review.

#4 Freelancing Job

A freelancer is a self-employed person offering services, usually to multiple customers at the same time. Freelancer operates on own. A freelancer sets his own service menu, price, and target market of clientele. There are various freelancer jobs available online such as freelance writing, graphic designer, social media manager, blogging, IT projects etc. You can earn $100 to $1000 per month as a freelancer.

Some common freelancer websites for finding online jobs are –

  • Upwork
  • 99designs
  • Fiverr

You will find a number of freelancer jobs posted on these websites.

#5 Online Tutoring – Online Jobs for student and teacher

Online Tutoring is among one of the best online jobs. If you’re a teacher, or a student with good academic records, you can earn handsome money online by tutoring students online. Virtual classroom concept and online learning is becoming very popular.

There are multiple ways to become online tutor such as posting videos on YouTube, Facebook etc. However, if you prefer online agency which gives you real online jobs on teaching you can use following websites.

  • Tutor.com
  • BuddySchool.com
  • MyPrivateTeacher.com
  • CueMath.com

These types of jobs can be done by anyone and anywhere, you just need to have teaching skills.

#6 Fiverr – Real Online Jobs by using your creativity

Fiverr.com is an online marketplace where you can sell anything. You can sell your logo, video, write up, website, voice etc. A task on this website is known as Gig. Each Gig is priced at $5 but it can be extended with bundling. Fiverr is the best place for anyone who wants to get started with earning money via online jobs. You just need a unique idea to earn money on this website. You need to create a Gig and deliver work. You will be paid for the order completion. There are thousands of people on fiverr who makes real money.

40 Part Time Jobs from Home Online & Offline

#7 Photography – Make Online Money by selling Photos

You can also make online money by selling photos. If you are good at photography skills there are a lot of online jobs for photographers. You need to click unique photos and sell them online for earning decent income. Few websites which sell stock photos online are –

  • Shutterstock
  • Dreamstime
  • Fotolia

#8 Become a Translator

Language translator is another lucrative option. You can make a lot of money by becoming a Translator. The most important requirement for becoming a translator is fluency in two-three languages. The foreign languages translator such as French, Germen, English, Chinese, Russian are usually in demand. You can earn around $5 to $50 per page as a translator. The amount also depends upon language. You can find translator job on UpWork, Indeed etc.

#9 Paid Social Media Jobs

If you are good at social networking and love to remain active on social networking site such as facebook, twitter, Instagram you can start paid social media jobs. The task associated with social media job is very easy such as posting status updates on social media, replying comments on Facebook pages, uploading videos to YouTube, increasing fans etc.

There are many companies that pay money for social media jobs. You can find this type of job directly or from website like Paid Social Media Jobs.

#10 Transcription Jobs

A transcription job is to convert audio or video speech into a written or electronic text document (such as PDF, word file and so on). To get a transcription job you require very good listening and language skill. You can charge $1 to $1.5 per audio minute as a transcriber. Following website offers transcription jobs.

  • TranscribeMe
  • Transcription Puppy
  • Speed Pad

Summing Up

In a nutshell, we can say that there are a lot of real online jobs available online.  It doesn’t matter whether you’re a student, working professional, housewife, an unemployed or retired person you can make money online.

These real online jobs do not make you rich overnight, but in the long run, you can make a lot of money using these sites.

If I have missed any real online job that can help readers to make online money please share it in the comment section.

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