A bond that does not pay periodic interest. Instead, it is issued at a discount to its face value and redeemed at par on maturity. The difference is the investor's return.
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Z
Zero Coupon Bond
FIRE Planning
Related terms
80C Deduction
Section 80C of the Income Tax Act allows deductions up to Rs 1.5 lakh per year for investments in ELSS mutual funds, PPF, EPF, NPS, and other specified instruments.
Corpus
The total accumulated amount of money in an investment portfolio or fund. In FIRE planning, the target corpus is the amount needed to sustain retirement expenses.
FIRE
Financial Independence, Retire Early. A movement focused on aggressive saving and investing to achieve financial independence and retire much earlier than traditional retirement age.
Gratuity
A lump-sum benefit paid by an employer to an employee upon retirement or resignation, based on years of service. Relevant for FIRE planning as a retirement income component.
Inflation
The rate at which the general level of prices for goods and services rises, eroding purchasing power. Critical for FIRE planning — your corpus must grow faster than inflation.
Lump Sum
Investing a large amount of money at one time, as opposed to spreading it over regular intervals (SIP). Timing matters more with lump sum investing.