POSTED BY October 9, 2013 1:21 pm COMMENTS (4)ON
Myself 27 years. Planning retirement by age 57.
My plan: Invest 5000/month or in other words 60000/year for retirement. Calculations gives me accumulation of good corpus by my expected age of retirement. But now Im concerned about the tax that this investment gonna incur.
What made me concerned about tax is, Im stopping my already started LIC policies and diverting that amount to the above said investments. My LIC agent asked me like, “Sir you may stop the policies started by me . Your FDs and other investment may give you good returns, but when tax is deducted you are not going to get what is expected out of it. But for the policies suggested by me, neither investment nor the returns are taxable.”
60000/year is my planned amount out of which 30k will be invested in PPF/NSC or tax saving MFs. remaining 30K in bank FD/ other equities. So this 60k/year should give me a good return after 30 years.
1. Is the LIC agent correct in what he has stated? Even if other investments gives a good return on a long run, when we take the tax part in to consideration is it gonna be a low return at the end.?
2.Can someone calculate or atleast guide me on how to calculate on how the tax gonna play on my retirement planning. (based on numbers i gave in Calculation section)