Team-BHP (https://www.team-bhp.com/forum/)

-   Shifting gears (https://www.team-bhp.com/forum/shifting-gears/)

-   -   The Retirement Planning Thread (https://www.team-bhp.com/forum/shifting-gears/200514-retirement-planning-thread-23.html)

Agree with this.

Looks romantic but when it comes down to getting hands dirty - well it is not every one's cup of tea. As kids we were brought up in a farm house sort of residence in the middle of a town in North Karnataka. We had half a dozen mango, guava, coconut, sapota trees along with a small dairy. We used to grow our own vegetables. Lived sustainably - to use modern day word - using dead wood and leaves for heating water, making brooms out of coconut leaves, bio gas and what not. Life - looking back - was nice BUT was physically draining. We were young then and climbing trees to spray pesticides, reaping the harvest, "wrestling" with cows were possible. But when one gets old, doing the farming along with managing the livestock needs good physical endurance.

For those who want to try this route - preferably work on someone's farm for one year and see if that is good enough for you else drop the idea for good.

I watched Under the Tuscan Sun many years ago and wanted to take up some kind of farming.
I watched P G Wodehouse The World of Wooster and wondered if the life of a gentleman of leisure was perfect.
I watched A Year in Provence many years ago and wanted to retire and write books.
I watched A Good Year and said that was it.
I watched Many a film and read Many a book and considered things, dreamt of casting away the shackles and leaving the tyranny of the mundane behind and escaping into the wide blue yonder forever.

All that was merely a dream. Because then, the BradyCardia incident happened and I rather quickly realised the thin thread that keeps us hanging on to life. And Bang went all the theories.

I realised that instead of having this romantic view of some kind of rose-tinted future, it would be best to live well now, try your best to be healthy, enjoy your day-to-day and at the same time save as much as possible for the unknown, because truly, once it has gone away, Zindagi definitely Na Milegi Dobara.

Live in the NOW, with an Eye to the Future.

Great thread and valuable information. We should ideally consider retirement planning to encompass our whole life not just the pecuniary aspects of it. If we partition the expenses post retirement (for a reasonably healthy individual) it would probably look like this, if one is not conservative-
1. Food and clothing - 15%
2. Monthly utility bills like Fuel, electricity, water, Cable, Internet, insurance, etc- 15%
3. Travel and entertainment- 30%
4. Health and Medical expenses- 25%
5. Contingency expenses- 15%

In all the above the greatest uncertainty is in our health expenses since it cannot be predicted an carries an element of unknown and the one cost which can actually grow as you get older. So the greatest investment we can make is ensuring that we are in good health as we approach retirement. This has a double effect, not only does it reduce the visits and medical costs but also allows us to enjoy better with more time to leisure and hobbies.

So we need to invest in both finance and our personal health to really have any good impact.

On a lighter note, I just felt like adding this because life without enjoyment and happiness is just wasted.


Therefore, Life is indeed too short, to Drive Boring Cars.:)

I am doing some calculation for my long term goals and retirement .
I am assuming the above table in my calculations.
What do you guys think of this ?

Air Fares have tripled in the last 3 years.
If you want to fly to a foreign destination for a holiday be prepared to pay big money.

I guess this could be the after effect of Covid. If there would not have been any Covid then I am sure it would be a different case. Ideally I should be factoring normal scenarios in my calculation.

The number of travel vacations may go up considerably post retirement. The number of group tours, mostly religious, that senior citizens are taking these days is simply staggering :). Of course, it is a lifestyle choice and may not be applicable for you.

Hello Friends,
I have read many pages on the NPS related tax exemptions and even the posts on this thread but my confusion still remains as nowhere it is coming out clearly to me, so I’d use illustration with numbers to understand tax benefit.

Scenario: I have opened an NPS account through my employer where there is a 10% of basic salary being deducted every month and invested in NPS. Let’s assume this amount to be monthly Rs.5000, annually 60,000. I also make a self contribution of 50,000 to NPS account in the year.

Now, under Sec 80 C, I already have below for deductions of 190,000 capped at 150,000.
• 80,000 Tution Fees
• 50,000 LIC Premium
• 60,000 PF Contribution (Self)
Question:
• Will there be an additional deduction for the NPS amount (5000x12) = 60,000 from taxable income under Sec 80CCD?
• Self contribution of 50,000 is also deductible from taxable income. So does this along with above, give me a total decution of (60,000+50,000) =110,000 under NPS which is over and above the 150,000 limit under Sec 80C?

Appreciate your response in this regard.

If the amount of Rs.60k is employee contribution (and not the employer contribution) then it comes under the 1.50 lac limit under Sec 80C. The remaining 50k can be claimed as a deduction under section 80CCD(1B) which is over and above the Rs.1.50 lac deduction available under Sec 80C.

Thanks Sahi624 for your response. Again, have some doubt when you say Employee contribution vs employer contribution.
My understanding is when I enroll to NPS via employer, 10% of my basic will be deducted through the payroll which is nothing extra but a deduction from my take home - is that called an employer contribution or employee contribution?

I am sure employer is not going to give anything extra from their side if one enrolls for NPS, its going to come from the existing CTC only.:p

This is my understanding as well. Contribution through corporate employer upto 10% basic is over and above the 80C. But EPF employee + EPF employer + NPS + Superannuation fund shall not exceed 7.5L for tax benefit. Your contribution of 50K is extra but not sure how long it will be available. I have not opted for NPS yet.

Link: https://www.npscra.nsdl.co.in/tax-be...o%207.5%20Lakh.

And of course, it will all be part of CTC and nothing will be beyond that rl:

Thanks again. So basically in the scenario illustrated one would have below deductions under Sec 80 C overall

150,000 (PF,LIC,Tuition Fees etc) + 60,000 (Employer Contri for NPS) + 50,000 (Self contri) = 260,000 Total.

I was not clear on the second component above being eligible for deduction if component 1 has already maxed at 150,000.

:thumbs up

This is correct understanding. I have been using the same mechanism for last 3-4 years. And it works wonders.

Tax Sections applicable are:

• 80CCD (1B) for 50K Self Contribution and
• 80CCD (2) for 10% of Basic through payroll deduction

I have been a nomad all my life, currently living outside India. I have an apartment in Bangalore and a landed property in Kerala. However both places don't seem ideal to me for retiring. Need to settle at a peaceful, developed place, was thinking of what options do I have and Goa seemed to check the boxes, ultra expensive though. Anyone here has purchased land or villa in Goa?