The Government has just announced the #PPF (and other small savings) interest
rate effective from tomorrow.
There's a HUGE cut all across - PPF itself is now only 6.4% compared to 7.1%
last year.
When I first took up my parent's portfolio - it was 100% in debt instruments,
divided almost equally into the different products you see listed below.
Their sole argument of "safety" doesn't hold anymore. In the quest for
guaranteed returns, the only thing that will be guaranteed is the failure to
beat inflation.
This will affect their #retirement corpus and goals.
Most of us here have started studying about equity, now that it has been the
rage since the market crash. However, your parents might not be.
Here's how you can help them:
• Get them an fee-only advisor
• Introduce them to index mutual funds (depending on age and risk appetite)
• Help them understand impact of this on their portfolio. If they are okay with
lower returns, help them taper down their future expectations from their corpus.
What else do you suggest?
#bplan21
rate effective from tomorrow.
There's a HUGE cut all across - PPF itself is now only 6.4% compared to 7.1%
last year.
When I first took up my parent's portfolio - it was 100% in debt instruments,
divided almost equally into the different products you see listed below.
Their sole argument of "safety" doesn't hold anymore. In the quest for
guaranteed returns, the only thing that will be guaranteed is the failure to
beat inflation.
This will affect their #retirement corpus and goals.
Most of us here have started studying about equity, now that it has been the
rage since the market crash. However, your parents might not be.
Here's how you can help them:
• Get them an fee-only advisor
• Introduce them to index mutual funds (depending on age and risk appetite)
• Help them understand impact of this on their portfolio. If they are okay with
lower returns, help them taper down their future expectations from their corpus.
What else do you suggest?
#bplan21
