You are still young and want to start saving for your retirement. You want to ensure that you get a regular income after retirement. For this reason, you want to invest in a pension plan. Which pension plan do you pick up? There is NPS (National Pension Scheme) and there are several pension plans from the insurance companies. Which one would you pick? In a pension … [Read more...] about NPS vs Pension Plans from Insurance Companies: Which is better?
You got Rs. 10 lacs with you. You know you would need the money or at least some portion of it within 3 years. Where would you invest that money? A Bank Fixed Deposit or a Debt Mutual Fund? Let's assume debt mutual funds have as low risk as FDs and FDs are as flexible as debt MFs. The only difference is in tax treatment. And that both return 8%. After 1 year, you … [Read more...] about Need money within 3 years: Bank FD or a Debt Mutual Fund?
Many of us dislike annuity plans. The rates are low and the income is taxable. You lose flexibility with the money. The income is not inflation-adjusted. So many problems. Still, annuities can add a lot of value of retirement portfolio if purchased at the right age. In this post, let’s try to understand this with the help of examples. We will start with a brief introduction … [Read more...] about Retirement Planning: Staggering Annuity Purchases can Increase Income and Reduce Risk
Every profession requires you to have persuasive skills. You have to persuade your boss to grant you a leave. You have to persuade our team member to agree to your line of thinking. Your boss has to persuade you to work over the weekend. You may say your boss hasn’t really persuaded you to stay work over weekend. But he used his Authority to make you work. You could have been … [Read more...] about The Little Tricks Our Minds Play: How to Avoid being a Victim of Mis-selling?
If you are an investor in debt mutual funds, do keep an eye on the size of your fund scheme. It is a red flag if the size of your debt fund scheme has gone down sharply. If your fund scheme has experienced sharp outflows, you need to investigate. What is the problem if the size of my debt fund scheme has gone down sharply? If your fund scheme is experiencing fund … [Read more...] about A Sharp Decline in Debt Mutual Fund Size is a Red Flag
NPS vs PPF is not an easy question to answer, but why should you face such a question? Because no one has an unlimited amount of money to invest. Therefore, when we must make an investment choice, "This or That" or "X vs Y" or "Which is better" questions invariably pop up. Whether we talk about tax-saving or retirement or creating wealth, you will face such dilemmas. … [Read more...] about NPS vs PPF: Which is better?
I regularly write against mixing investments and insurance. I highlight issues in the cost structures of various investment and insurance combo products. Regular readers would know that I like mutual funds for investments. However, I must concede that the mutual fund companies do not really smell of roses. I have written about many issues with their intent and communication to … [Read more...] about Mutual Funds: The Expense Ratio Trick
LIC has launched a new online term plan, LIC Tech Term Plan (Plan 854). It is a purely online plan and you cannot buy it from an agent. Due to this reason, this is cheaper than other term life insurance plans offered by LIC. If you have been planning to buy a term plan (or you need to purchase a term insurance plan), then you can add this plan from LIC as part of your … [Read more...] about LIC Tech Term (Plan 854): A New online term plan from LIC
The Reserve Bank of India has issued a circular dated September 4, 2019, making it mandatory for all new floating rate loans from October 1, 2019, to be linked to an external benchmark. This applies to all floating rate retail and MSME loans. What does this mean for you if you are an existing borrower or plan to take a new loan? Before we jump on the new announcements, … [Read more...] about Home Loans from October 1, 2019, to be linked to External Benchmark
If you are a home loan borrower, I am sure you have been frustrated by your bank not passing the interest rate cuts to you. Every new iteration of loan benchmark (PLR, Base Rate, MCLR) gives you renewed hope, but nothing seems to change. Now, there is enthusiasm about Repo rate linked home loans. Though I am optimistic, we will see how this pans out. While we are worrying about … [Read more...] about How a Negative Interest Rate Home Loan would work?