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| Money doubles in 8 yrs 7 months with current interest rates and used to double in five years when interest rates were in double digit figures. |
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- If you are 25 yrs today and save just Rs 10000p.a for the next 35yrs till age 60yrs, your savings would have grown to Rs 10133456 when you are 60yrs of age and if you had delayed the start of savings by just 5 yrs (that is started saving Rs 10000p.a from age 30yrs till age 60yrs), your savings would have grown to Rs 4999569 by the time you are 60yrs. Half of what you would have earned by staring 5yrs earlier! A delay of just five years has reduced the power of compounding on your investments by 5000000!
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| Systematic Investment planning is meant for everyone and can be started with an amount as low as Rs 500pm and does not require market timing and is the most scientific method of investing, since it helps you purchase more units in volatile markets and helps rupee cost averaging and can be used as a tool to achieve most financial goals. |
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| An individual spends 38yrs of his lifespan living with current and future dreams and goals like child education, child marriage, car purchase, home purchase,(all within this 38yrs) and also needs to allocate resources for the golden years, that span another 20 yrs post retirement at age 60yrs. Therefore, these 38 yrs include planning for present and future needs and spending for lifestyle needs and this is possible only by proper financial planning. |
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- Your net worth or value to your family is your Human Life Value which should roughly be 10 times your net take home income. This would ensure your family maintains the same standard of living- should anything happen to you today.
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| The cost of a pure risk cover insurance plan to cover a liability of Rs 1000000 is just Rs 2400p.a or RS 200pm for a 30yr male. |
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| Withdrawal of dividend amount, by redemption of units in a debt fund before one year, is more beneficial than opting for a dividend, even though dividend distribution tax paid by the fund is just 14.126%. This is because, the withdrawal consists of partly principle amount, and hence, tax liability is only on the interest component which is minimal. |
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| The equation works better, if withdrawal from a debt fund is done after one year, where long term capital gains tax is reduced to 10% and dividend distribution tax paid is 14.126%. |
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| Don’t you think you can save your family a difficult financial burden by covering your liability immediately? |
| The diiference between icome and real income |
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| How to priories your needs. |
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| Why equities are best in the long run |
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| The power of compounding |
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- If your monthly expense is Rs 10000 today, you would need Rs 21580pm 10yrs and RS 100600pm 30 yrs from today to maintain the same standard of living at an inflation of 8%p.a.(BTW inflation of petrol and food is 10-12%p.a!) Inflation robs your purchasing power
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| An investment under Sec 80C of Rs 100000, helps save Rs 33000 tax for an individual and HUF. |
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| Interest on housing loan of Rs 150000, helps save tax of Rs 49500p.a under Sec 24! |
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| Maturity Values, bonuses received from insurance companies is tax free under Sec 10(10D) |
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| Proper Financial planning and will preparation, can save you and your family undue agony for the future and help the family tide through financial burdens. |
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| Dividing a portfolio of one’s investments, over asset classes with negative correlation (that is do not move up / down at the same time) helps bring down the risk of the entire portfolio. |
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| Rebalancing in Asset allocation, helps investors enter equities at low levels and exit at high levels, thereby avoiding “timing of the market” |
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| For more information, please contact us. |
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