What are Retirement plans

Retirement Plans offered by life insurance companies are bundled products, offering the benefits of both insurance and investment. A typical retirement plan has two phases. 

The first is the accumulation phase, during which you pay premiums and the money accumulates through the tenure of the plan. The accumulated money is then invested in securities approved by the Insurance Regulatory and Development Authority (IRDA), the insurance regulator.

These products are designed to protect the value of your principal while at the same time provide you with steady returns.

The accumulation stage is followed by the vesting age, which is the age when you start getting payouts from the kitty. This can be selected by you. The vesting age in most plans is 40 to 70 years. The period when a person gets pension is also called the annuity phase. During this phase, you can withdraw up to 33% of the accumulated amount in one go. The rest is paid as pension.

In the immediate annuity option, a person can pay in lump-sum, instead of over the years, and start getting income immediately. The frequency of payments received can be monthly, quarterly, half-yearly or annually.

*TERMS YOU NEED TO KNOW*

VESTING AGE: The age at which you choose to start receiving pension.

ANNUITY: Regular monthly pension payable to you after your cross the vesting age.

SUM ASSURED: The amount that the nominee receives in the event of death of the insured during the accumulation period.

ACCUMULATION PERIOD: This is the period when you pay premiums to accumulate funds for retirement.

SURRENDER CHARES: Charges levied by the insurer if you end the policy before the date of vesting.

PARTICIPATING PLANS: These plans give a share of the insurer's profit to policy holders. This share is not fixed and depends on the financial performance of the company.


To know more read the full article here    
                                                               

IIP and Inflation Data - November 12, 2013

Data released on November 12, 2013:

September IIP at 2 percent versus 0.4 percent (MoM) 

-Mining sector growth at 3.3 percent versus -0.2 percent (MoM) 

-Manufacturing sector growth at 0.6 percent versus -0.1 percent (MoM)

-Electricity sector growth at 12.9 percent versus 7.2 percent (MoM) 

-Basic goods growth at 5.4 percent versus 1.5 percent (MoM)

-Capital goods growth at -6.8 percent versus -2 percent (MoM) 

-Consumer durables growth at -10.8 percent versus -7.6 percent (MoM) 

-Consumer non-durables growth at 11.3 percent versus 5 percent (MoM) 

-Consumer goods growth at 0.6 percent versus -0.8 percent (MoM) 

-IIP Data: August IIP revised to 0.4 percent from 0.6 percent earlier

October CPI inflation at 10.09 percent versus 9.84 percent (MoM) 

-October CPI food inflation at 12.56 percent versus 11.44 percent (MoM) 

-October CPI urban inflation rate at 10.20 percent versus 9.93 percent (MoM) 

-October CPI rural inflation rate at 10.11 percent versus 9.71 percent (MoM)

Source: moneycontrol.com 

September IIP at 2 percent versus 0.4 percent (MoM) -Mining sector growth at 3.3 percent versus -0.2 percent (MoM) -Manufacturing sector growth at 0.6 percent versus -0.1 percent (MoM) -Electricity sector growth at 12.9 percent versus 7.2 percent (MoM) -Basic goods growth at 5.4 percent versus 1.5 percent (MoM) -Capital goods growth at -6.8 percent versus -2 percent (MoM) -Consumer durables growth at -10.8 percent versus -7.6 percent (MoM) -Consumer non-durables growth at 11.3 percent versus 5 percent (MoM) -Consumer goods growth at 0.6 percent versus -0.8 percent (MoM) -IIP Data: August IIP revised to 0.4 percent from 0.6 percent earlier October CPI inflation at 10.09 percent versus 9.84 percent (MoM) -October CPI food inflation at 12.56 percent versus 11.44 percent (MoM) -October CPI urban inflation rate at 10.20 percent versus 9.93 percent (MoM) -October CPI rural inflation rate at 10.11 percent versus 9.71 percent (MoM)

Read more at: http://www.moneycontrol.com/news/stocksnews/stocksnews-jet-sbi-mm-aurobindo-rcomm-fortis_988443.html?utm_source=MC_Mail_Mkt_Alert

Should you buy gold NOW?

Gold has corrected significantly in the first fortnight of April 2013. The precious metal is now available at attractive levels. Even a week before investment in gold seemed too steep. But on Monday the day when gold prices saw biggest ever one-day loss in dollar terms PIMCO's Bill Gross tweeted , "I would still buy gold here. World reflating."

The huge sell off in gold was triggered by the prospect of selling of gold assets by Cyprus and other PIGS(Portugal, Ireland, Greece and Spain) countries' Central Banks. On the other hand, World Gold Council reported six major countries; Russia, Turkey, South Korea, Brazil, Kazakhstan and Iraq; have been consistently buying gold. This is good news for gold investors. Any potential selling pressure in gold will thus be set-off by the continuing gold buying by these nations.

More over gold reserves of these countries are meager 2.5% of total gold holdings in the world. Even a sell-off by these countries will not have a significant impact on the gold prices in global markets. The last week's fall was mainly due to speculative trades.

Pleased with prices!! (Photo Credits:  QZ.com)

The demand for gold in India is largely attributed to the marriage season . The falling prices is a good news to the brides and all the jewelry buyers this season! On Saturday there was scramble for gold bars and  coins in Dubai markets which reported a shortage in the supply of the physical gold. This demand for the yellow metal will support and strengthen gold prices further. If you had skipped jewelry shops recently NOW is the time to add that glitter to your investments!

Why GOLD lost its shine?

After a consistent rise of twelve years the glitter of gold dimmed in the past few weeks. The gold prices in the commodities market slid to two year low of $1,321 an ounce. The speculative trading has led to the biggest one-day loss in dollar terms on Monday 15 April, 2013 and caught everyone by surprise.

Gold - the safe haven in times of inflation

India ranks 11th in the list of countries with largest gold reserves measured in tonnes. According to World Gold Council Indian households have 20,000 tonnes of gold. Indian households have lost over 14 Lakh Crore of their gold value as prices have crashed nearly 22% to 25, 550 from its high of 32,460 in November 2012. 

A spectacular bull run in US equities have led investors to look for alternative investment options. Assets in Exchange Traded Funds (ETFs) have seen biggest decline since 2004 as a large number of investors are exiting these gold funds.

International Monetary Fund (IMF) has down-scaled the global economic growth from 3.5% earlier to 3.3% in 2013 nearly same rate as 3.2% of 2012. Investors in the US are heavily investing in US Treasuries - an instrument best related in times when the economy is weak or unstable.

Traditional Indian Gold Jewelry

Cyprus Central Bank may have to sell gold reserves to raise 400 million Euros stimulus package and other debt-ridden countries including Italy, Portugal and Spain may follow the suit. The investors stampeded out of Gold-backed ETFs.  The spectacular bull run of US Equity Markets, stimulus package of Japan, slowing down of global economy and Federal Reserve hinting at ending of quantitative easing (stimulus/bailout package) are the various reasons investors are fleeing this safe haven.   

This fall may be the much-needed correction. But the investors are wary of another dip in the gold prices to $1,200 an ounce due to weak Global demand for gold. If it happens equities will follow. Then it would be real trouble.