When you are planning to ringfence your assets/finances from adverse events, the two most common insurances that come to mind are Life Insurance and Health Insurance. Life Insurance provides compensation to the family if you are not around. An adequate life insurance cover safeguards your family should ideally cover all your outstanding loans, provide for financial goals and … [Read more...] about Disability Insurance: Missing piece in your Financial Planning
There is a BIG difference between financial planning for retirement (accumulation phase) and financial planning during retirement (decumulation phase). Let’s look at what I mean. In this post, I will limit the discussion to investments. Financial Planning for Retirement (Accumulation Phase) During this phase, you are trying to accumulating funds for retirement. Quite … [Read more...] about Financial Planning For Retirement vs. Financial Planning During Retirement
Are you looking for a financial planner or financial adviser? Who would you go to? There is no dearth of choices. Let’s look at some of the common financial advisers/ planners/agents you may encounter: Mutual Funds Distributors (MFDs) or Independent Financial Advisors (IFA) Insurance Agents Bank branches/ relationship managers SEBI Registered Investment … [Read more...] about What is better for you: A Fee-only Financial planner or a Fee-based planner?
You are frustrated about your bank not passing interest rate cuts to you. You are not alone. They are many borrowers like you. Even the Reserve Bank regularly expresses its displeasure since monetary transmission is affected if the bank don’t pass the rate cuts swiftly to the borrowers. The Reserve Bank tried to bring many measures to hasten the transmission and bring relief … [Read more...] about A home loan that is truly floating
If I were to ask you to add 17 five times, you would swiftly do the calculations in your head and give me the answer “85”. It is easy to add or multiply smaller numbers. 17+17 = 34 + 17 =51 + 17 =68 + 17 =85 However, if I were to ask you to, “What is 17 raised to the power 5?”, would you be able to answer this question without a calculator or at least pen or paper? As a … [Read more...] about Don’t let the numbers fool you
Long-Term Capital Gains on sale on equity mutual funds and listed shares was proposed in Budget 2018. I have discussed the proposal in an earlier post. In this post, let’s look at the actual impact (in numbers) because of the introduction of tax on long-term capital gains. LTCG on sale of equity shares/equity mutual funds From FY2019, the long-term capital gains (holding … [Read more...] about Impact of Tax on Long Term Capital Gains on Returns: Explained with Examples
Here are the key highlights of Budget 2018: Income Tax Slab rates have not been changed (Income Tax slabs for FY2018-2019) Income Tax Slab rates remain the same as for FY2017-2018. Introduction of Standard Deduction of Rs 40,000 (Good) This replaces medical reimbursement and travel/conveyance allowance. At present, you can get medical benefits reimbursed from … [Read more...] about Budget 2018: Key Highlights and the Income Tax Slab Rates for FY2018-2019
Long-term capital gains tax on the sale of equity and equity funds has now been introduced. Earlier, if you sold the listed shares or equity oriented mutual funds after 1 year, the resulting capital gains were exempt from income tax. This is no more the case. How will Long-Term Capital Gains on Sale of Equity Mutual Funds/shares be taxed? Such long-term capital gains are … [Read more...] about Budget 2018: Long Term Capital Gains Tax on Equity Mutual Funds and Listed Shares Introduced
Have you shifted your NPS PoP to eNPS? We know that shift to eNPS helps reduce the cost of investment by a small margin. However, once you have shifted to eNPS, you may face a problem in updating details in your NPS account. After all, now, you don't have a physical PoP. If you have to submit a form or document, you can't do it visiting a bank branch (PoP). As I … [Read more...] about How to update information in your NPS account through eNPS portal?
Many investors look towards Small Savings Schemes not just as tax-saving options but also as reliable means of investment. However, you do not always earn a constant rate of return on these investments. The interest rate keeps fluctuating. Interest rates for the small savings schemes get revised every quarter i.e. the Ministry of Finance notifies these rates every quarter of … [Read more...] about Latest PPF, Sukanya Samriddhi, SCSS, Small Savings Scheme Interest Rate (January-March 2018)