There are many different types of financial goals, such as:

• Short-term goals: These goals are typically achieved within one year or less. They might include saving for a down payment on a house, paying off debt, or taking a vacation.
• Medium-term goals: These goals are typically achieved within three to five years. They might include saving for a child’s education, saving for a wedding, or starting a business.
• Long-term goals: These goals are typically achieved over five years or more. They might include saving for retirement, saving for a dream home, or leaving a legacy.

No matter what your financial goals are, the first step is to set them. Here are some tips for setting financial goals:

1. Be specific. Your goals should be specific, measurable, achievable, relevant, and time-bound. For example, instead of saying “I want to save money,” say “I want to save $10,000 for a down payment on a house within one year.”
2. Make them your own. Your goals should be something that you are personally motivated to achieve. Don’t set goals that you don’t care about or that you don’t think you can achieve.
3. Write them down. Once you have set your goals, write them down and put them somewhere where you will see them often. This will help you stay focused and motivated.
4. Break them down into smaller steps. Large goals can be daunting, so it’s helpful to break them down into smaller, more manageable steps. This will make them seem less overwhelming and more achievable.
5. Track your progress. It’s important to track your progress towards your goals so that you can see how you’re doing and make adjustments as needed. There are many different ways to track your progress, such as using a spreadsheet, a budgeting app, or a financial advisor.

Setting financial goals is the first step to achieving financial success. By following these tips, you can set yourself up for success.

Here are some additional tips for setting financial goals:

• Get help from a financial advisor. A financial advisor can help you create a financial plan that meets your specific needs and goals.
• Be realistic about your income and expenses. It’s important to be realistic about how much money you have coming in and going out each month. This will help you set realistic goals.
• Be patient. It takes time to achieve financial goals. Don’t get discouraged if you don’t see results immediately. Just keep working towards your goals and you will eventually reach them.

Setting financial goals is an important step in taking control of your finances. By following these tips, you can set yourself up for financial success.

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Pension under Employees’ Pension Scheme

Employees’ base pay (and dearness allowance, if applicable) is increased by 12% each month to account for EPF contributions made by their employers. Workers receive their share of the fund’s corpus when they retire. Employees’ contributions are matched by their employers, with 8.33 percent going into the Employees’ Pension Scheme (EPS).

Except if you elected a higher pension on actual basic pay before the window ended on July 11, 2023, the maximum basic salary that may be used in this computation is Rs 15,000 (which means Rs 1,250 flows into your EPS). After ten years of EPS membership, you become eligible for a pension. You will begin collecting your pension at the age of retirement based on the following formula: [Pension= (pensionable salary (that is, average of last 60 months X pensionable service)/70].

The nitty-gritties of family pension

The Employees’ Pension Scheme, 1995 provides pension benefits not just to the member employee but also to the member’s spouse and dependent children in the event of the member’s death either before or after retirement.

What is family pension?

The pension formula guarantees payments to the pensioner from the time of retirement until the pensioner’s death. If she or he passes away, the pension won’t immediately stop. Any dependents under the age of 25 will be able to share in the pension with the spouse.

Even if the EPS member only made one pension payment before his or her death, the pension will be paid out to the beneficiary. A minimum guaranteed pension of Rs 1,000 per month will be paid to the employee’s spouse in the event of the employee’s death while still employed.

Who is eligible to receive it?

Family members under the meaning of EPS 95 include a spouse and any dependent children under the age of 25. Children that have been officially adopted by EPS members are also included in this description. A ‘widow’ pension is given to the surviving spouse of a pensioner and continues until the surviving spouse remarries or dies. Children’s pension will be converted to an orphan’s pension, which is larger, if the person remarries.

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What if the EPS member is single?

In such a circumstance, the widow’s pension would first go to the dependent father, then the dependent mother. There is no way for a member or retiree to put forth a specific candidate. Only the spouse and children of an EPS member will receive benefits, regardless of whether or not the member is married or has children.

Any beneficiary designation made before marriage will be null and void, and the spouse and any minor children will automatically be named as beneficiaries.

How is pension for the spouse calculated?

She/He will receive up to fifty percent of the pension to which the member was entitled. 25 percent of this ‘widow’ pension will be allocated to the children.

What is the amount of payout made to children?

The monthly pension for children will be equal to 25% of the widow/widower pension. This amount will only be paid until the child reaches 25 years old. Additionally, only up to two children are eligible for this pension at any given moment. If a member’s child is permanently and utterly disabled, he or she will receive the amount for life, regardless of the number of other children in the family.

If both parents are deceased, the ‘orphan’ pension will increase to 75% of the widow’s pension. For children’s pension, a distinct bank account must be established. If both parents were EPS members, these offspring will receive a ‘double’ pension.

What are the documents that the nominees would need to claim family pension?

They will require the pensioner’s death certificate, copies of the beneficiaries’ Aadhaar cards and bank account information, as well as evidence of age documents for children.

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Is the marital status of children taken into account for paying family pension?

No. The only requirement is that they are under 25 years old.

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1.  Financial planning is not rocket science

That’s the general consensus, at least. Risk and return are the only two things that matter when it comes to financial products, which is why financial planning is so focused on them. People should be able to handle the procedure on their own because it involves nothing as difficult as atoms and molecules. The vast majority of those who hold that view are mistaken. Financial planning is more about the self-discipline and method than it is about any one area of complexity. Planning your finances requires sifting through mounds of information, considering a wide range of options, and remaining steadfastly committed to your long-term strategy. You should rely on your financial advisor’s persuasive skills for that. No matter how hard you try, you won’t be able to force yourself to adopt good financial planning habits on your own.

2.  There is enough wisdom floating around on the net and on TV

Financial planning advice can be found on a wide variety of television shows and online resources. Don’t kid yourself, that still isn’t enough. These are broad, introductory recommendations. Your financial advisor should provide you with a tailored solution that meets your specific needs. After all, we all have different requirements, thus the answers must be tailored to our own circumstances. A competent financial advisor would be most suited for such a task.

3.  I know that I need to get more into debt as I grow older

Everyone knows that the standard formula for determining the optimal equity/debt ratio is (100-age). Therefore, if you’re 40 years old, you should invest 60% of your money in stocks, but if you’re 60 years old, you should invest only 40%. However, this is merely a rule of thumb, and there is no actual evidence to support it. The optimal debt-equity ratio depends on a number of variables, such as your risk tolerance, your goals for wealth growth, the rates of return on equity and debt, and so on. You can’t expect any results by using a cookie-cutter approach. Your debt-to-equity ratio should be structured according to your specific circumstances and the reality of the market. A professional counselor is the ideal choice for this kind of demanding and creative work.

4.  Fees payable to the advisor is an additional cost

Financial advisors do charge fees, but there are two ways to look at it. To begin, it does cost money to contact a professional such as a doctor, engineer, or lawyer. Then there’s no reason to feel guilty about shelling out this sum to your financial planner. The top solutions on the market require financial investment in the form of knowledge. Second, working with a financial advisor is beneficial since you, rather than the principal who is creating the goods, are the focal point of the solution. That’s a big plus for you. We are talking about decades, if not centuries, of saving for your future happiness. What you’ll pay your advisor is negligible compared to the magnitude of the benefits you’ll receive.

5.  My auditor tells me which policies to buy and which mutual funds to buy..

You should try to avoid that. An auditor can help you with anything from filing your tax forms and auditing your books to handling your direct and indirect tax payments and refunds. Your auditor’s area of expertise is precisely that. Keep in mind that financial advisory is a niche field, so you’ll need to ask the correct questions to the proper person if you want accurate answers. A competent financial advisor is the only person who can handle your genuine long-term goals and help you formulate a strategy to achieve them.

6.  I do not have the time for such a long process

The stability of your family’s finances and your ability to provide for your family’s needs in the future are, quite simply, of paramount importance. The procedure is time-consuming, demanding, and requires self-control. But it is the only way you can hope to achieve your long-term monetary objectives. You’ll need more than simply product expertise and a willingness to take risks to reach your objectives. Discipline and strictness play a far larger role. That is the value added by a financial counselor. If you want a safe and wealthy future for yourself and your loved ones, you’ll have to go through the laborious process of financial planning.

7.  I know my financial needs and my financial health the best

You certainly do, but your financial planner is the one who will assist you in translating those aspirations into manageable budgetary objectives. You are well-aware of your financial requirements, but you might be unaware of how the power of compounding might assist you in meeting those need. First and foremost, while considering your own financial situation and objectives, your personal biases and preferences may enter the picture. The financial advisor is a third party who is not emotionally invested in the outcome.

In conclusion, it’s best not to overthink and overwork yourself. It’s in your best interest to hire a financial planner.

Read Also : What is a Sub Broker and What Do They Do?

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