NPS is best for 7LPA+ salaried. Are you investing? If not, why not?
NPS 80 CCD(1B) is the best low cost option if you can save additional 50k per year. It comes with a long lock-in but since we mostly don’t have jobs with pensions so it’s worth to get lakhs of Rupees when we retire. March is around so if anyone wants to invest quickly and save tax, can message me. Happy to help!
Coy Lee
Student
8 months ago
No net saving of 50K, you're saving on 50K.
Eg. 30% of 50K is 15K. Savings of 15K not 50K
Kendall Lee
Stealth
8 months ago
You misunderstood it! My point was you should invest if you are financially sound to “save” additional 50k from your total expenses then you should utilise the option.
Dezi Carmden
Student
8 months ago
No requesting to re-read your post- line#2
"If you can save additional 50k per year"...
Now I personally don't enough value in saving 15k just to have money while at age of 65+ what's the point.
Kendall Olive
Stealth
8 months ago
That’s correct!
Best tax saving instrument out there. Period.
1. Equity returns
2. Tax benefit for own-50k
3. Tax benefit if employer adds-10% of basic, no limit.
4. Can include in 80c as well, above 2 are separate.
5. 60% corpus at time of retirement is tax free. Rest goes into annuities.
Point 3. Tax benefit for employer contribution to NPS and EPF upto 7.5 Lakhs in a year
On an initial glance, it looks good.
But having made the calculations time and time again it never made sense once you consider below points -
1. Maximum 75% of portfolio can be in equity, rest 25% has to be in Govt or Corp bonds. So even with 30 years lock-in you still can't have it all in equity.
2. If your age is less than 45, then investing (50 - 15) = 35k in Nifty 50 shall yield better post tax return when you hit 60.
3. At maturity, 40% has to be used to buy annuity. Don't like the lack of flexibility. Besides all the annuity products offered are shit.
4. I don't plan on working till I am 60. In such case why would I plan my finances as if my retirement shall begin at 60 which NPS assumes.
Jordon Lee
Stealth
8 months ago
Can’t I make it 100% equity, since I’m <30? Can NPS ever beat NIFTY50 or NIFTY100 ?
Jordon Lee
Stealth
8 months ago
Please always follow asset allocation. You should have at least 30% invested in bonds/FD/Gold physical or gold bonds. NPS saves tax too.
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