The most common way to determine how much money you’ll have is to use a pension calculator. Based on information you input about such things as your current salary, your savings and how long you have left until you retire, such a tool will be able to calculate how much money you can expect to receive when you do finally call time on your working life. Not only that, but it’s also a great tool for allowing you to see if you need to adjust the amount you’re saving towards your pension now, in order to have an adequate sum for your retirement.

When considering how you’d like to receive your money, there are a few factors you need to be aware of. For example, if you’ve been paying money into some form of pension scheme, such as a money purchase plan, you’ll need to turn that money into an income once you retire.

According to the experts, the best way to do this is to purchase an annuity. This basically means you pay a sum of money from your pension fund to an annuities provider, who in turn will transfer it into an income for you. This will continue for the remainder of your life. There are several types of annuities available -conventional annuity with a level or changing income, with-profits annuity, or unit-linked annuity – which can provide you with various different advantages. Which one you opt for is dependent on your individual circumstances and will affect how much cash you receive. It’s absolutely essential however, that before you jump straight into buying an annuity you consider each option carefully, as once selected it cannot be changed.

Another option you can choose is to take out a tax-free cash lump sum. Generally speaking, you’re able to extract a maximum of 25 percent from your pension plan, which will not be tax deductible. Although this option means your overall pension will be lowered, you’re then able to invest the lump sum in other schemes.

Another way to secure cash once you’ve retired is to take out an Equity Release scheme. This involves taking out a loan on your property or selling all or part of your home in return for a regular income or a lump sum. They can be great for obtaining a lump sum of cash from your home, but are not always the best option for everyone. Consequently, make sure you do your homework before agreeing to sign up for one.

This is a lifetime mortgage. To understand the features and risks, talk to a financial adviser. Taking out a lifetime mortgage could affect your tax position, your eligibility for means tested benefits and ability to move or sell your property. A lifetime mortgage will reduce, possibly to nothing, any inheritance you decide to leave.

So, before you retire, make sure you’re up to speed with your financial situation. By spending just a little bit of time researching your options now, you will save yourself from a potential hardship come your retirement, meaning you can fully enjoy your new found freedom!

This article has been written for information and interest purposes only. The information contained within this article is the opinion of the author only, and should not be construed as advice or used to make financial decisions. Expert financial advice should always be sought and any links contained within this article are included for information purposes only.

Victoria Cochrane writes for a digital marketing agency. This article has been commissioned by a client of said agency. This article is not designed to promote, but should be considered professional content.

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As an alternative to target retirement date or risk based mutual funds, many open architecture 401(k) providers allow retirement plan advisors to create their own managed models for inclusion within a plan’s investment menu. One of the reasons for doing so is the ability to create an asset allocation strategy that utilizes investments from multiple investment managers. A number of these advisor-managed models often include a passive investment component, i.e., index mutual funds. The popularity of these ‘passively managed’ offerings–beyond their ability to consistently generate market-like returns–lies in their relatively low cost.

Whereas retirement plan advisors have historically only had the option of using index mutual funds as the passive component of their managed models, many retirement plan providers have recently made exchange-traded funds (ETFs) available for inclusion in a 401(k) plan’s investment lineup. Like index mutual funds, passively managed ETFs effectively track their benchmark and have low expense ratios.

One of the primary differences between ETFs and index mutual funds is that ETFs in taxable accounts can be traded intraday like stocks. However, most retirement plan platforms only price ETFs once a day. In this regard, they trade exactly like mutual funds. The primary benefit, then, of choosing an ETF over an index mutual fund in a retirement plan would seem to be its lower expense ratio. But while one might assume that, all things being equal, the option with the lower expense ratio would be the better investment choice, all things in this situation are not equal. We can’t forget that an ETF in a retirement plan is likely to charge a commission for both the purchase and the sale of the ETF whereas a majority of index mutual funds are “no load” and do not charge a purchase commission. That is not to say the ETF may not be the better choice–it very well could be depending on the advisor’s investment management strategy for the model.

If you are evaluating whether an ETF or an index mutual fund is better suited for your managed models, you should consider the following:

* ETF commissions charged by the plan provider: A $1000 investment into an index mutual fund will result in a $1000 balance. However, if your plan provider charges a commission to purchase an ETF, a $1000 purchase will result in less than a $1000 balance since the commission amount will reduce the amount of the proceeds. There will also be a subsequent commission charge to sell the ETF.

* ETF share price: If your open architecture 401(k) plan recordkeeper charges a commission to buy and sell an ETF, the ETF with the higher share price will result in a lower commission charge. For example, assume there are two S&P 500 ETFs that you are considering with identical expense ratios, you are seeking to purchase $1000 worth of ETFs for your plan, and your retirement plan provider charges a $0.05 per share commission. If one of the ETFs is trading at $100 and the other is trading at $50, your commission amount will be double for the $50 per share ETF since you will be purchasing twice as many shares. Whereas the share price of a mutual fund is rarely a factor used in evaluating an option, the same cannot be said for an ETF.

* Expense ratios of both products: Assuming the ETF has a lower expense ratio, but also charges a commission, it is likely that you will have to hold the ETF a longer time period for its superior performance (due to the lower expense ratio) to compensate for the purchase and sale commissions. The time period will be a direct result of how much lower the expense ratio of the ETF is than that of the index mutual fund.

* Availability of the product to track the desired index: Whereas both index mutual funds and ETFs have products that track common market indexes like the S&P 500, Russell 2000, and the Dow Jones Industrial Index, ETFs typically have more specialized funds available. Some examples include funds that invest solely in the China Small Cap, Consumer Stables, Biotechnology, and Malaysia indices.

One of the primary benefits of using an open architecture 401(k) plan provider is the ability to include either ETFs or index mutual funds in the plan’s core investment lineup or within a managed model. You will not be limited to proprietary products or to those that only pay revenue sharing. If your plan’s investment menu is not limited in this regard, a plan advisor should be able to implement strategies similar to those used in non retirement accounts to best achieve the stated investment goal of the model.

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Throughout the years, folks have selected mutual funds as the primary vehicle when saving for college costs. Although there are many variations of mutual fund based plans-from the traditional brokerage account to the newer 529 plans; there is even a Education IRA that is popular as well. The latter plans were developed so that a person could save for college, using after tax money and based upon the underlying mutual funds, the person could enjoy tax-deferred savings

A lot of the financial press has been dedicated to promoting the virtues of these savings vehicles from the standpoint that college costs are rising faster than inflation and a family needs to accelerate their savings using these types of plans. However, hidden in the fine print was the unfortunate realization that these types of vehicles could, in fact, lose money! How many families were shocked when their hard-earned money evaporated when the stock market declined 35% decline in the S&P 500 Index from 2000-2002-only to have it go down another 46% decline from October 2007- October 2008?

The problem with a lot of college planning techniques is that money is typically invested in mutual funds inside these plans and those funds are 100% at risk to loss due to stock market downturns thereby subjecting the invested money to the 46% and 35% declines listed above.

So if you can lose money in mutual funds, how do you save for college? That’s a good question and the simple answer is that “it depends”. This is a simple answer that many quality financial advisors use to determine the right solution for your needs. It is also a way to do a proper job for any potential investor-thereby not throwing the “latest and greatest” product or plan at a potential client!

Generally speaking you could have put money into a tin can for the last 18 years and had more money than investing in the market! Hmmm, let’s say that again-more money in a tin can than the market-whatever do you mean? First off, you need to start with some kind of deposit, let’s say $50,000 or the amount necessary to accumulate $50,000 in 18-years which in this case would be $231.48 per month (assumes no interest or taxes paid). Now, let’s think about your own situation, if you had put away that money-knowing full well that it’s not earning a penny-would you be happy with that? “It depends”. There he goes again with that simple phrase! If you started with $50,000 and because of the market it is now worth $25,000-then the answer is an emphatic YES! If you had $50,002.50-maybe. If it was worth $101,290.83-definitely NO! What about $79,938.88, again definitely NO!

But, how would you guarantee< $79,938 or $101,290 to be there in 18-years? Certainly not from a tin can-right? Correct! These numbers represent investing $231.48 per month for 18-years at an interest rate of 4% or depositing $50,000 into an account that pays 4% for 18-years. But where could one find a steady 4% interest rate? One place is a fixed, deferred annuity. A fixed annuity is a safe savings vehicle brought about by an insurance company. Your money earns a fixed interest rate declared by the insurance company, using not less than 3% annually. Some annuities pay a multi-year guaranteed rate of interest, which can be 4% or higher depending on the term of the plan.

Now are you ready for the good part? Wait, you are telling me that having invested $50,000 18-years ago is now worth $101,290 is not the good part? Yes. It is a very good part, but let’s get back to our original discussion about college savings. If you are a parent whose son or daughter is approaching college and much like your peer group, you have saved money in (my opinion) the wrong places-ie. Mutual funds, you are now going to be faced with another problem: Financial Aid eligibility! Without getting too much into detail, all the money that you’ve invested for their college may now go against you for financial aid purposes! However, if you had invested in a fixed annuity, do not worry because those monies are sheltered from the financial aid formulas. Now, your family (depending upon many other factors) can reasonably expect to receive some financial aid that you may not have received due to money that is open to discussion on your balance sheet!

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SBI contra fund is a open ended equity scheme which invests in equities which are out of favour in the market. This fund was launched in 1999, with a minimum application amount of Rs 3000. There is no entry load for investing in this fund. But if you withdraw your fund within one year of investment, then you will be charged 1% of the amount as exit load. If you withdraw your amount after one year, then you will not be charged any exit load.

SBI mutual fund systematic investment plan is available for this scheme also. Under the recently launched “SBI Chota SIP” scheme, you can invest a minimum amount of Rs 100 per month or under systematic investment plan scheme you can invest a minimum amount of Rs 500 per month. These investments can be made either monthly or quarterly in advance. You can also choose sip auto debit facility for making monthly payments. For availing auto debit facility, you have to sign the bank authorization form along with the mutual fund application form. Once your application form is processed, your will get your updated statement. Once the monthly payment starts, you will get an updated statement every month with the updated units purchased in the folio.

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State Bank of India is one of the most trusted public sector banks in India. If you are a beginner in investment then SBI SIP plans may be good option for you. Here are some SBI SIP mutual funds available.

Magnum Equity Fund – Minimum application of thousand rupees is needed and SIP is Rs. 500/month for 12 months.
Magnum Tax Gain – Minimum application amount is Rs 500 and minimum SIP amount is Rs.500/month for12 months
Magnum Index Fund – Minimum SIP amount is Rs.500/month for12 months
Magnum Sector Funds Umbrella – Minimum investment amount is Rs. 2000 per sector and minimum SIP amount is Rs.500/month for12 months
Magnum Global Fund – Minimum SIP amount is Rs.500/month for12 months
Magnum Midcap Fund – Minimum SIP amount is Rs.500/month for12 months
Magnum Mutlicap Fund – Minimum SIP amount is Rs.500/month for12 months
Blue Chip Fund – Minimum investment – Rs. 5000 and in multiples of Rs. 1000

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The most common way to determine how much money you’ll have is to use a pension calculator. Based on information you input about such things as your current salary, your savings and how long you have left until you retire, such a tool will be able to calculate how much money you can expect to receive when you do finally call time on your working life. Not only that, but it’s also a great tool for allowing you to see if you need to adjust the amount you’re saving towards your pension now, in order to have an adequate sum for your retirement.

When considering how you’d like to receive your money, there are a few factors you need to be aware of. For example, if you’ve been paying money into some form of pension scheme, such as a money purchase plan, you’ll need to turn that money into an income once you retire.

According to the experts, the best way to do this is to purchase an annuity. This basically means you pay a sum of money from your pension fund to an annuities provider, who in turn will transfer it into an income for you. This will continue for the remainder of your life. There are several types of annuities available -conventional annuity with a level or changing income, with-profits annuity, or unit-linked annuity – which can provide you with various different advantages. Which one you opt for is dependent on your individual circumstances and will affect how much cash you receive. It’s absolutely essential however, that before you jump straight into buying an annuity you consider each option carefully, as once selected it cannot be changed.

Another option you can choose is to take out a tax-free cash lump sum. Generally speaking, you’re able to extract a maximum of 25 percent from your pension plan, which will not be tax deductible. Although this option means your overall pension will be lowered, you’re then able to invest the lump sum in other schemes.

Another way to secure cash once you’ve retired is to take out an Equity Release scheme. This involves taking out a loan on your property or selling all or part of your home in return for a regular income or a lump sum. They can be great for obtaining a lump sum of cash from your home, but are not always the best option for everyone. Consequently, make sure you do your homework before agreeing to sign up for one.

This is a lifetime mortgage. To understand the features and risks, talk to a financial adviser. Taking out a lifetime mortgage could affect your tax position, your eligibility for means tested benefits and ability to move or sell your property. A lifetime mortgage will reduce, possibly to nothing, any inheritance you decide to leave.

So, before you retire, make sure you’re up to speed with your financial situation. By spending just a little bit of time researching your options now, you will save yourself from a potential hardship come your retirement, meaning you can fully enjoy your new found freedom!

This article has been written for information and interest purposes only. The information contained within this article is the opinion of the author only, and should not be construed as advice or used to make financial decisions. Expert financial advice should always be sought and any links contained within this article are included for information purposes only.

Victoria Cochrane writes for a digital marketing agency. This article has been commissioned by a client of said agency. This article is not designed to promote, but should be considered professional content.

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So why should you utilize a “Fund A Need” program? Shouldn’t the auction be sufficient to draw in the donations that will be available? One of the reasons is that there will always be “losing” bidders at your auction. These guests came and attempted to give their money to your organization but the potential donation is still in their pocket. Occasionally, there will also be guests who are not fond of the competition of an auction or are not interested in the items for sale. They are also there to give, but need another means to do it. The direct appeal for a specific need allows every type of giver to become involved. It does not limit participation to those at certain levels of giving. Surprisingly, more money is often raised during the “Fund-A-Need” program than throughout the auction itself. Just as important, it inspires the guests at your event and makes them more aware of your organization’s needs.

If “Fund-A-Need” programs are so successful, why do some charity organizations avoid them? One of the most common reasons is being unaware of the revenues possible. For the most part, the staff members of charity organizations are not experienced with professional auctions and are unequipped to set up such a program. Some believe that it will cause the event to become too lengthy. Therefore, they prioritize the awards presentations or the entertainers over the “Fund A Need” program and they miss the most important part of their event – generating revenue. They may feel that they are “overdoing” the request for giving because they are already including a silent auction and a live auction. But remember the mindset of your guests. By attending your event, they are already showing their support for your organization, with their presence and their wallets. The “Fund-A-Need” program will invite them to be a more influential donor and give them an ownership in the process. People want to give more when they feel that they truly are a part of something special.

To plan your event, speak to your professional charity auctioneer. Together, you will be able to create a fun and effective program. If done correctly, your guests will be entertained and motivated to help achieve your goals.

If you would like free help planning your benefit and charity auction or to receive more information about “Fund-A-Need”, contact Kevin Rutter, president of Hot Auctioneering, a professional auctioneer, speaker & writer. Kevin is ready to ignite the excitement at your next auction or event! Please visit his website at http://hotauctioneering.com/

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One can purchase these schemes by enclosing a demand draft or a cheque payable at the branch of the place where application is to be submitted. Reliance provides its investors with various plans and schemes meeting the budget and requirements if all its investors. Closing net asset value is calculated till the day when application is received provided that the application is received before 3 pm. If the application is received after 3 pm, the next business day would be applicable.

Various plans are available. Some of them are Reliance growth plan, Reliance banking schemes, equity fund, Reliance tax saver fund, Reliance Pharma fund, Reliance equity advantage fund, Reliance equity linked saving fund, Reliance long term equity fund, and much more. They all provide various benefits to the investor lacking in other types of funds. It has also launched systematic investment plans for the benefit of retail investors and low income persons.

Next Step: Find the details of exciting returns from reliance schemes.

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A money market fund is usually a mutual fund which invests its assets in short term debt instruments like cash or cash equivalent securities. These funds are usually used as short term investments until the time you have found a suitable option to invest your money. This is particularly good option in recent times when the investors are waiting for the markets to bounce back. Once the Bull Run starts, investors can take out this money from money market funds and invest them in equity funds or other high yielding avenues.

There are various types of such instruments like Certificate of deposits, commercial paper, U.S. Treasuries, repurchase agreement etc. These funds come in two varieties which are taxable funds and tax free funds. As the name suggests, the taxable funds are taxed during maturity while the tax free money market funds are exempted from tax.

At a first glance, nobody will decide to buy a taxable fund due to obvious tax related reasons but the fact is that tax free funds have lower yields than taxable funds. While comparing the two, it is important that investor convert the tax free yield into equivalent taxable yield. The formula for this conversion is given below:
Taxable Equivalent Yield = Tax-Free Yield / (1 – Marginal Tax Rate)

There are various tax free money market funds available in market today. Most of them have same yield therefore there is not much difference between them. A few names from reputed financial institutions are American Century Tax-Free MMF (BNTXX), Vanguard Tax-Exempt MMF (VMSXX), Fidelity AMT Tax-Free Money Fund (FIMXX), and T. Rowe Price Tax-Exempt Money (PTEXX).

The author writes articles on various topics related to personal finance including best tax free money market funds and money market certificates.

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