LIC Jeevan Umang is a non-linked participating whole life traditional life insurance plan. The meaning of whole life is almost literal. The plan matures when you turn 100. Let’s look at at some salient features of the plan and how LIC Jeevan Umang makes for an insurance and investment product. Salient Features of LIC Jeevan Umang Policy Maturity: At the age of 100 years (I … [Read more...] about Review: LIC Jeevan Umang
Met a cousin at a wedding in the family a couple of months back. He is a bright young boy, still in his teens. He had vague idea about what I did for a living. As it usually happens at family weddings, most of us have to bide time till the evening when the real festivities begin. There is never enough space to stretch your legs and sleep. With nothing to do, he began asking a … [Read more...] about How much do I need to Invest per month to accumulate Rs 1 crore?
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
One of the few things that I remember from induction training on the first day of my professional career many years back is a quote from a presenter that Expectation reduces Joy. From the perspective of a large software company, it was important to have employees with not too high expectations. However, even as an employee, it made a lot of sense. Your expectations about … [Read more...] about The Problem lies not with the Investment but with Investor Expectations
The biggest financial risk during retirement is that you may outlive your retirement corpus. You may have planned really well and planned for the corpus to last till the age of 90 but you are fit for another 10 years by the time you turn 90. I have not even considered many unknowns and unplanned expenses in life. What do you do then? How will you provide for your basic … [Read more...] about When to purchase an Annuity plan?
You invest Rs 10,000 on January 1 every year for 20 years. In the first case, you earn a constant 6% p.a. for the first 10 years and 12% for the last 10 years. In the second case, you earn a constant 12% p.a. for the first 10 years and 6% p.a. for the last 10 years. Will you end up with same corpus in both the cases? After all, Compounded Annual Growth Rate (CAGR) is same … [Read more...] about What is the difference between IRR and CAGR?
Corporate (or company) Fixed Deposits are just like bank fixed deposits. The only difference is that the borrower is a company (and not a bank). I had written a detailed post on whether you should consider investing in such corporate fixed deposits. The aforesaid post covers various aspects about such fixed deposits from companies. In this post, I will dig deeper into … [Read more...] about Corporate Fixed Deposits: Do not fall for misleading interest rates
Equity funds are risky but debt funds are safe. Isn’t that what most of us think? That is clearly not the case. Debt funds carry risk too, something that is ignored by many investors. Many argue for debt mutual funds as replacement for replacement for bank fixed deposits. In fact, I have written a post comparing debt mutual funds and fixed deposits and how debt mutual funds … [Read more...] about Don’t ignore the Risk in Debt Mutual Funds
Avoid bad financial decisions is as important as making good ones. But what influences you to make such good or bad financial decisions? Your decisions are a reflection of your financial habits i.e. a reflection of who you are as an investor and as a person. In this post, we will look at 5 financial habits that you can affect your financial lives adversely. #1 Think more … [Read more...] about 5 Financial Habits that can ruin your Financial Life
Affordable housing is one of the major focus areas of the present Government. Pradhan Mantri Awas Yojana (PMAY) was launched in 2015 to promote affordable housing. Under PMAY, the Government launched Credit Linked Subsidy scheme (CLSS) to provide relief to such buyers who take loan to purchase or construct a house . Under the scheme, the Government, through its nodal agencies … [Read more...] about How Interest Subsidy is calculated under Credit Linked Subsidy Scheme in PMAY?