Skip to main content

Early start to savings and investing helps for a life long financial well being

Tax Saving Mutual Funds Online

Download Mutual Fund Application Forms

Workers who start saving in their 20s and 30s can benefit from the magic of compounding and can see through the ups and downs of a stock market An early start also is a very effective strategy if you're worried about how much you can set aside

YOUNG investors spooked by market volatility are continuing to shun equities. But, is that any reason not to be thinking about saving for a secure retirement at a young age?

 

Absolutely not. A survey by Reuters of several dozen top retirement experts reinforces the importance of starting early for this simple reason: Time is on your side. Workers in their twenties and thirties have plenty of time to benefit from the magic of compound returns and to allow the market to bounce through its usual ups and downs.

Here are the most important steps young savers can take to build retirement security: Start early, start small: If you read no further in this article, absorb this point: Above all else, get an early start. Nothing will have a greater impact on your success, due to the effects of compound returns over time. This will be true if historical market returns continue — even if you start small and even if there are bumps in the road. "A retirement account contribution of $5,000 today at age 23 will be worth nearly $300,000 when you retire at age 70, assuming a 9 per cent return," notes Bob Morrison, a financial planner in Denver.

An early start also is a very effective strategy if you're worried about how much you can set aside.

Vanguard Investments tested scenarios and investment strategies for investors age 25, 35 and 45, aiming for a retirement age of 65. The investor who starts at age 25 with a moderate investment allocation and contributes 6 per cent of his salary will finish with 34 per cent more in his account than the same investor who starts at 35 -and 64 per cent more than an investor who starts at 45.

Put another way, the 35 year old would need to boost his contribution rate to 9 per cent to achieve the same result as the 25year-old starter who was saving 6 per cent.

Save as much as you can: Starting early may permit a lower rate of saving — but, that doesn't mean you shouldn't put away as much as you can handle comfortably.

Vanguard found that the contribution rate — along with the early start — has a much larger impact on retirement success than market returns.

It's a matter of controlling what you can control. Your timing and investment rate both have a much larger effect over time than what the market does. Higher contribution rates also are useful if you're scared by stock market risk and prefer a less aggressive portfolio.

Vanguard found that a retirement saver starting at 25 saving 9 per cent of salary annually with a moderate allocation finished with 13 per cent more than by contributing 6 per cent in an aggressively-invested account.

Don't cash out: Don't cash out your 401(k) when changing jobs, no matter how small the balance.

This interrupts the flow of compound returns and it's very difficult to make up lost ground over time. Instead, roll over the account to your new employer or a low-cost standalone IRA, or leave it in place if it's a good plan.

Get the match: Make sure to contribute enough to max out any matching contribution from your employer; otherwise you're leaving free money on the table. Research by Aon Hewitt found that 43 per cent of workers in their 20s contribute to 401(k) at rates too low to capture the full match, compared with 29 per cent of all workplace savers.

At a time when we're struggling to get 1 per cent returns on CDs, young people are foregoing a 100 per cent rate of return here. It's a huge mistake.

Monitor fees: The total cost of workplace plans vary widely — anywhere from well below 1 percentage point to a whopping 5 per cent. Over time, fees can take a big bite out of returns. Wherever possible, seek out low-cost index funds within your workplace plan; if no low cost options exist, your plan may offer the option of a 'brokerage window' that allows you to buy and trade whatever stocks, mutual funds or ETFs are offered by your plan's vendor.

Likewise, if your employer's plan offers a target date fund option (TDF), don't assume this is your best option. TDFs can help by allocating your investments in an age-appropriate way, but many carry higher costs.

---------------------------------------------

Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

Invest Tax Saving Mutual Funds Online

Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

Download Tax Saving Mutual Fund Application Forms from all AMCs

Download Tax Saving Mutual Fund Applications

These Application Forms can be used for buying regular mutual funds also

Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )

  1. HDFC TaxSaver
  2. ICICI Prudential Tax Plan
  3. DSP BlackRock Tax Saver Fund
  4. Birla Sun Life Tax Relief '96
  5. Reliance Tax Saver (ELSS) Fund
  6. IDFC Tax Advantage (ELSS) Fund
  7. SBI Magnum Tax Gain Scheme 1993
  8. Sundaram Tax Saver

---------------------------------------------

Application form for Tax Saving Infrastructure Bond and more information

Current open Infra Bond Application form

Submit filled up application Collection canter near you

Popular posts from this blog

Real Returns in Investing

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300 Real Returns in Investing     A Anil Singh (name changed), 44, works with a private company and believes in investing his entire savings in fixed deposits. His financials from the year 2000 till date is given in the table. Anil's savings in FDs gave him an average return of around 8%. The total amount saved over the 174 months (From January 2000 to June 2014) is Rs 49.80 lakh. The value of his investment today is around Rs 66.71 lakh. Naveen Singh (name changed), 44, works in a similar profile like Anil. However his expenses were on the higher side. His financials are as in the table. Naveen invested only in equities. The total amount saved over the 174 months (From January 2000 to June 2014) is Rs 38.40 lakh. The v...

Budget 2014 Highlights for Saving

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300   The new finance minister Arun Jaitley has just presented his first budget. What measures does the budget contain that will specifically impact savers and investors? Here they are: 1. Housing loans exemption for self-occupied properties increased to Rs2 lakh: Earlier this amount was Rs1.5 lakhs. This move barely keeps pace with the inflation in asset values.   2. Investment limit under 80 (C) increased to Rs1.5 lakh: This is a good move again and offers some relief to taxpayers.   3. IT exemption increased to Rs2.5 lakh, Rs3 lakh for senior citizens. This comes as a minor relief for taxpayers.   4. Annual PPF ceiling to be enhanced to Rs1.5 lakh, from Rs1 lakh: This is in tune with the change in 80C.   5. Long term capital gains tax for debt funds has been rai...

ICICI Prudential MIP 25 - Invest Online

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300   ICICI Prudential MIP 25     (CRISIL Rank 2)   This scheme was launched March 2004. Please see the chart below for the one, two, three and five years annualized returns from this scheme. The minimum investment in the scheme is Rs 5,000. The asset allocation of the portfolio is 24% equity, 72% debt and 4% cash equivalent and others. Please see the chart below for the monthly dividends declared by the scheme, on a per unit basis, over the last 5 years.   For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call Leave a missed Call on 94 8300 8300 Leave your comment with mai...

Franklin India Smaller Companies Fund - Invest Online

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300   Franklin India Smaller Companies Fund   While the universe of small-cap stocks in India is vast, there are very few equity funds which take on the task of sifting through this space for good long-term bets. Franklin India Smaller Companies Fund has managed this with aplomb. What we like about this fund is its significant out-performance of its category and benchmark over the last four years, and its ability to moderate portfolio risk despite investing in the riskiest segment of the equity market. This fund's stock selection strategy, like that of Franklin India Prima Fund is focused on finding companies that generate positive cash flows across business cycles. High return on investment and manageable leverage are also filtering criteria. Says R. Janakiraman, fund ma...

How to open a Capital Gains Account?

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300   How to open a Capital Gains Account? You can open a capital gains account in an authorized bank. The Government has notified 28 banks which can open the Capital Gains Account on behalf of the Government. You have to apply for opening the account by filling out the required application form (Form A) and submit proof of address, PAN card and photograph. You cannot withdraw funds from a capital gains account using a cheque book or ATM, like you do in your normal savings bank account. There are procedures to be followed to withdraw funds from the capital gains account. Investment in Specified Bonds Section 54EC of Income Act provide that if the seller invests whole or part of capital gains arising from the sale of asset in specified Capital Gains, within a period of six months of the ...
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now