Stress Test in Personal Finance
You must have heard of “Stress Test” carried on American and European banks during the 2009 crisis which brings out the reality on under-capitalisation of banks and how prepared they are to face unfavourable economic scenario. As per Investopedia, bank stress test is an analysis conducted under unfavourable economic scenario which is designed to determine whether a bank has enough capital to...
Read MoreBirla Sunlife Recurring Savings plan review
When Birla Sunlife launched a product with name recurring savings plan, on the face of it looks like a different and new product. But when you check this out in detail you will find that it’s like any other Systematic Investment Plan. The main difference is that it is available with optional “Free Life insurance Cover”. Let’s look at this product in detail and find out its suitability in...
Read MoreSpreading the income – Golden Rule to save tax
Saving Taxes has always been a priority area for any tax payer. Even from a Financial Planning perspective, taxes are treated as a hole in Investors pocket which increase the outflow thus reducing the surplus. But good news is that a lot of tax saving is possible through proper tax planning, within the provisions of tax laws. Please remember that tax planning does not mean Tax evasion where the...
Read MoreHow to improve your credit score
How irritating and annoying is this for someone who is earning a decent salary, working with one of the best employers of the world and that too at a senior level, to see his loan application get rejected. Unbelievable!! Isn’t it?? But it actually happened with one of my good friends. The reason quoted by the bank is Bad Credit score. Yes, these days besides looking at the income part, loaner...
Read MoreHealth insurance claim
Making a Health insurance claim is not as easy as buying the policy online with a few clicks. And the process becomes worse when your pre-authorisation form gets rejected which means that you can’t make a cashless claim but have to ask for the reimbursement later on. I personally have gone through many claim cases and found that in reimbursement cases, you need to be very patient. There are...
Read MoreBeware of “Me too” Financial Planners
Gone are the days when people get mislead and mis-sold with a particular investment/insurance product or a money multiplier instrument. With regulators getting strict on the financial advisory front and stressing on the financial literacy of consumers, sellers have come up with a new concept of selling which is called “Financial Planning”. Yes, financial planning is spearheading as a tool to...
Read MoreSetting Goals – Differentiate Needs and Wants
Setting Goals is the most important aspect in financial planning, as it sets our target for which we have to arrange our resources. But this is the most confusing and difficult task for many. When I ask people to write down their goals, many write as: big house, big car, super education for kids, exotic foreign vacation etc. It is only when I sit and explain them the difference between needs and...
Read MoreFinancial Planning Tips for Self-Employed / Business Persons
The idea of working just for you and becoming self-employed lures many persons. But before taking the plunge one should be very much clear about his personal and business goals. Self-employed persons are more concerned about their business rather than personal finances. Your Income swings in business should not hit your personal life. And also your personal financial issues should not hit your...
Read MoreKnow-How to Resolve
So, one more year has ended and once again we are ready with our New Year resolutions. It’s raining articles on “what should be your resolution?”. Resolutions are made to concentrate on those areas which need improvement but even if they are made with a proper thought, they are most likely to be broken. The simplest reason for this is that resolutions mean behavioural changes and most...
Read MoreAsk the Right Questions
Since 2008 financial regulators have passed many regulations on product manufacturers, agents and advisors to prevent mis-selling. The idea behind all the regulations is to reduce or abolish commission in financial products, so that the agents do not get induced by the same and advise product as per the clients’ need. Every investor of ULIPs or poorly a performing mutual fund is saying that...
Read MoreI do(nt) need Financial Planning
“Hey, where are you these days and what do you do?”, asked an old friend, whom I was meeting after almost four years.“I am a Financial Planner” I replied. “Oh! You deal in investments and all that stuff? Good. I would love to have your services but for planning you need finances and paise bachte hi kahan hain.” The same friend called me after a fortnight and asked for a child plan to...
Read MoreTime to Review
Have you ever thought why corporates declare quarterly results? You thought this is a regulatory requirement. Yes, you are right in one way but along with that it also helps the shareholders and management to understand the progress and growth rate of the company. Every corporate exists to grow, so they keep check on their performance parameters quarter-on-quarter, year-on-year. This will help...
Read MoreHelp your parents – It will help you
You love to see your children growing. You want to give them the best in this world, you want to accomplish your dreams through them….that’s why you are more concerned about your investments related to children and pay very less attention to your own retirement savings. Right? That’s what your parents did when you were young. Many of those who were in government jobs might not be facing...
Read MoreMust Dos….for corporate employees
Last week I met one of my good friends, Raman, who works as a marketing head in a fast moving good company (FMCG). He was very tense and planning to switch his job. His main cause of worry was his finances, which he came to discuss with me. I was amazed to learn that even though his salary was among the best in the industry, he was in a financial crunch. After a two-hour discussion and a thorough...
Read MoreRealty Check
“This is the only investment vehicle where the value never goes down” said one of my client’s as he withdrew all the money lying in mutual funds, which he had saved for his retirement. In the last six months I have seen many people withdrawing their investments out of mutual funds and stocks, calling them speculative assets, from bank fixed deposits calling it a low yielding product and...
Read MoreInsure yourself completely – Don’t ignore personal accident insurance
We all know that life is full of uncertainties. To cover our financial responsibilities we take life insurance and that too after proper calculation and a for good sum assured. To ensure that our savings don’t get depleted due to medical expenditure, we take health insurance. But there is one more type which is most ignored which is Accident and Disability insurance. This is the cheapest...
Read MoreStay Focussed on Your Goal
What we are earning for? Why do we want to save? Why do we need our money to grow? All these and many such kind of questions don’t need any answer. Obviously, we are earning for ourselves and our family. We want to save for rainy days, to provide the best education to our children. We want money to grow so that we can have a healthy and comfortable lifestyle even after retirement and should not...
Read MoreCommon mistakes – when you are not planned
A few days back on a Saturday evening I was sitting with my good friend Vishal in a Café. Vishal works with a bank as Assistant Manager Sales. Since both of us are from financial services field, our topic of discussion was invariably financial markets. It was raining that day and while we sipped our Cuppa Mocha, Shilpa, a common friend, who works with a call center as Operations Head also...
Read MoreReviewing your Insurance Portfolio
A standard query in any question and answer section is always to do with the selection of stocks or mutual funds and whether they should hold on or let go. But I have not heard any query related to an insurance portfolio. Sometime people ask about one or two policies which they have already invested or are planning to invest in but no one is concerned about their complete insurance...
Read MoreDo it for your family – Do it in Right way
So finally you have understood the importance of Life, Health and accident Insurance. You have started saving for your Retirement and also for your children education and marriage. Today you have become so financially literate that you might not be misled by some Product agent and your life will work as per the designed Financial Plan. Isn’t this you want in your life? We want to plan and do...
Read MoreGood Loans Vs Bad Loans
There are many situations you face in your Lifetime where you have to borrow money from someone to satisfy your needs which could be purchasing of some assets or for personal expenses. Your Desires govern your needs and Loans help you to convert that need into demand. When you borrow from a Financial Institution, your purpose defines the type of Loan and your income defines your capability to...
Read MoreWant to Achieve your Financial Goals? Select an Advisor, not a product
How many times have you asked your relationship manager in your bank/your Mutual Fund or Insurance agent that “What’s new in the Market”? Let’s take it other way – How many times you have been approached by your Relationship manager in your bank/ your Mutual Fund or Insurance Agent that “This is new and improved product and you should definitely invest into that.” I don’t need...
Read MoreThings you must know before taking Reverse Mortgage
Eligible end Use of Funds: The Loan amount under Reverse Mortgage can be used for the following purposes: Up Gradation, Renovation or Extension of Residential Property. Medical emergencies. Supplementing Pension Income. Other Genuine need. Please note that this loan can’t be extended for Speculative or Business purposes. Must Read: What is Reverse Mortgage Which Institutions can provide...
Read MoreWhat is Reverse Mortgage
What is reverse mortgage? is a very common question asked by most of clients these days. So lets check what really Reverse Mortgage means and how it can help retired people in their golden years. Have you ever met a person who’s spent his whole life paying EMIs of home loan, car Loan, Personal Loan etc. and has done little about securing his retirement days, and now when they actually need...
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