One big advantage that ULIPs have over equity mutual funds is that the maturity proceeds from ULIPs are exempt from tax. On the other hand, the long-term capital gains on the sale of equity mutual funds are taxed at 10%. LTCG on sale of debt mutual funds is taxed at 20% after indexation. In an earlier post, I highlighted why I still prefer mutual funds over ULIPs. I don’t deny … [Read more...] about If you are old, avoid ULIPs
In this post, I will discuss tax benefits for NPS and the tax treatment of maturity proceeds. I will discuss if it makes sense to invest in NPS now or if you should invest in NPS for the exclusive benefit of Rs 50,000 under Section 80CCD(1B). NPS Tax Benefits (Latest) This part has not been affected by the latest budget. Only contribution to Tier-I NPS account is eligible … [Read more...] about NPS Tax Benefits and Tax Treatment at Maturity (Latest)
Every few months, we see Non-convertible debenture (NCD) issues from various companies. As on date (September 7, 2019), the NCD issues from Tata Housing, Aadhar Housing Finance and IndiaBulls Commercial Credit are live. Should you invest in such NCDs? Well, in this post, I will not review any particular issue of NCD. I will focus the benefits and risks involved in investing … [Read more...] about Should you invest in Non-Convertible Debentures (NCDs)?
LIC Jeevan Akshay VI is one of the most popular plans from LIC. In fact, it is one of the very few plans from LIC that I do not dislike. LIC Jeevan Akshay VI is an immediate annuity plan. You pay a lump sum amount once and the insurance company pays you a pension for life. It does not matter how long you live. The insurance company will pay you the pension for life. Not just … [Read more...] about LIC Jeevan Akshay VI: All you need to know (Review)
Introduction on tax on the long-term capital gain (LTCG) on the sale of equity funds/shares is a clear pain point for the equity investors. If you rebalance your portfolio at regular intervals (which you should) or have been planning to switch your regular plan investments to direct plan, you will have to incur some cost now. Earlier (before the introduction of the tax on … [Read more...] about How Tax loss Harvesting can help you save Capital Gains Tax?
In this post, I will answer a few queries that investors may have while exiting NPS (National Pension Scheme). There could be three types of exits from NPS: Normal exit (At the age of 60 in case of All Citizens Model, At the time of superannuation in case of Government NPS and Corporate Sector NPS) Pre-mature exit (before the age of 60 or superannuation as … [Read more...] about FAQs: Lumpsum Withdrawal and Annuity Purchase at the time of exit from NPS
Have you ever tried to under the mathematics behind No cost EMI schemes? As I see, the schemes are quite popular on e-commerce websites such as Flipkart and Amazon. Do you know RBI prohibits banks from offering zero interest EMI schemes? How do banks offer such schemes then? Well, e-commerce websites and banks have figured out a way around this. Here is an excerpt from … [Read more...] about How No-cost EMI schemes from Amazon and Flipkart work?
Whenever I deride an insurance and investment combo plan, I get many queries about how to invest for your kids’ education. When you are planning for kids’ education, your biggest concerns are: Where to invest i.e. choosing the right product to accumulate funds for their education If something happens to you, your planned savings for the kid’s education must not … [Read more...] about How (not) to invest for Children’s education?
Senior citizens are soft-targets for mis-selling. Why? First, they may not be comfortable researching the financial products or may not have requisite skill/ resources to understand the product before buying. How many are comfortable researching a product online? Secondly, they may lack the physical and mental strength to get justice if they realize they have been mis-sold a … [Read more...] about 5 reasons why Senior Citizens should avoid Life Insurance Products
Senior Citizens or retired personnel face many constraints that people in their 20s and 30s can’t even imagine. They have no salary to bank upon. They have to rely on their savings and pension to meet their monthly expenses. There is little ability to recover from an unplanned major expense. Advances in healthcare have ensured that the retirements are longer. Your pension may … [Read more...] about All you need to know about Reverse Mortgage Loan Scheme