Real income is the earning of an individual that remains after factoring in the effects of inflation. Say, the income was ₹100 and the inflation rate 10%. This means a pen costing ₹10 earlier would cost ₹11 now. With ₹100, one could earlier buy 10 pens. But after the change in price due to inflation, the same ₹100 can now buy only 9 pens.

It is estimated that 70-80% of the pre-retirement income is likely required to maintain a similar kind of lifestyle during retirement. It is necessary to factor in the tentative expenses and sources of income that one might have during the retirement, and risks  like inflation, tax obligations, falling interest rates, etc. while making retirement decisions.

The average monthly interest rate applicable on credit cards in India ranges mostly from 2.5- 3.5%.

After exhausting the ₹1.5lakhs limit under Section 80C, one can file an additional claim of ₹50000 contributed towards National Pension Scheme to avail the benefit of deduction under Section 80CCD(1B). The other cases fall under Section 80C and any additional claim is not allowed.

Short selling means borrowing a certain stock that an investor believes will decline in value, selling that stock at the market price and then when the date of returning the borrowing arrives, buy the stocks at lower price and returning them back. The difference between the purchase price now and the selling price then, is the profit for the investor.

Different banks have different minimum net monthly income requirements for car loan eligibility. However, most banks offer the loan if the individual has income in the range of ₹20000- ₹25000 per month.

A late payment usually stays on the credit report for a period of seven years. It negatively impacts your credit score. A poor credit score makes it difficult for an individual to qualify for home or car loans, and even to be eligible for credit cards. Even if one receives the loan, the interest rate applicable could be too high.

The most efficient plan for retirement is to create alternative sources of income that can generate revenue during the retirement phase. Any income source that generates cash inflow can be considered as a viable retirement income option. Present income source worth ‘n’ number of years is an exhaustible fund. Also, its purchasing power will ultimately get reduced due to inflation. Whereas, royalty income, rental income, and mutual funds dividends are good sources of passive income, which ensure a continuous flow of income without having to constantly work on it. So, one should try to create such sources for a comfortable retirement.

Junk bonds are very low rated investments which are issued by companies with low credit ratings. These offer very high returns but are subject to high risks. Since these offer very high returns at great risk, these are speculative in nature.