Tag: Financial management
NEED TO SAVE TAX? HERE ARE X QUICK TAX SAVING OPTIONS FOR A.Y. 2018-19
I’m sure you must have tried to meet your tax saving targets throughout the F.Y. But in the end, it is likely that you still need to push a little to compensate for that windfall bonus and the increment this year. Even if no bonus or increment happened don’t worry, just see if you have utilised your tax saving limits completely. If not, use the following tax saving options to save additional tax within few minutes. Continue reading “NEED TO SAVE TAX? HERE ARE X QUICK TAX SAVING OPTIONS FOR A.Y. 2018-19”
Essential Advice For Anyone Starting Out In Investment
The good news is that investing does not have to be complicated; in fact, it can be fairly simple if you know how to go about it, that is. While a lot of people make the mistake of thinking that investment is only for the wealthy, that’s far from true. What is true, however, is that when it comes to being wealthy, for the most part, the wealthy have made an investment at one point or another, which has got them to where they are now. Wealth doesn’t just magically happen, to have a large sum of money, you have to take certain steps, such as being braving and making an investment.
HDFC Life Pension Guaranteed Plan – A Tale of Two Investors
Ashish and Bala are both 50 year old Vice Presidents in a renowned IT firm. Both are looking to retire in about 10 years’ time and want guaranteed income for their lifetime once they retire. Incidentally, both have received handsome bonuses recently, which they want to invest in an instrument that will help to ensure a guaranteed income post their retirement (at age 60). Continue reading “HDFC Life Pension Guaranteed Plan – A Tale of Two Investors”
What are Monthly Income Plans?
If you are retired and want to invest a portion of your retirement corpus in an instrument that offers regular income, you may choose a bank’s monthly income scheme (MIS). It offers guaranteed returns and works like a regular fixed deposit (FD). Continue reading “What are Monthly Income Plans?”
How Does Switching Mutual Funds Affect Your Returns?
Not many investors are aware of the different types of mutual funds in the market. Due to the lack of knowledge and guidance, they end up investing in regular funds, which carry an average return. When they review the portfolio, they notice that they are not moving closer to their financial goals. Continue reading “How Does Switching Mutual Funds Affect Your Returns?”
Should Deduction on Term Insurance Be Separated From 80C
Life is uncertain, and a term insurance plan is the best way to deal with that uncertainty. By buying the right term insurance plan, you can secure the future of your loved ones in your absence. In case of the unfortunate event during the policy tenure, the insurer will pay the sum assured to your nominee.
How to Make Your Teenager Child Financially Responsible
For parents, their child always remains a kid even when they have grown up to be responsible adults. However, keeping emotional ties aside, it is the duty of every parent to teach their child to be responsible. While parents want to ensure that they offer the best of everything to their kid, it is also their unsaid duty to raise financially responsible children.
From a very young age, children tend to pick up a lot simply by observing their elders. Hence, parents need to put in extra efforts to ensure that their teenager child is financially responsible.
Tips to inculcate financial responsibility amongst teenagers
Teenagers are usually burdened with school work, sports, and extracurricular activities,but what affects them most is peer pressure. Before they start comparing and make attempts to match their lifestyles with their friends, it is important to teach them finances. Helping your child manage his/her ownmoney is the biggest financial planning lesson you mayimpart.
- Share financial responsibilities
One of the most important aspects is for teenagers to understand the value of money. The sooner they understand, the better they will manage their finances. Teenagers often tend to ask for monthly pocket money from their parents. Fix a certain amount. Do not provide an additional sum, even if they are penniless by the end of the month. Being strict at this stage will go a long way.They need to know that it is not an unlimited resource and should not be wasted. By sharing financial responsibilities with teenagers, you will give them the freedom to spend on what they can afford and what they consider important. This will indirectly help them curb overspending. If your child overspends in a particular month, he/she will learn not to repeat the same in future.
- Do not be overprotective
Every individual learns from his mistakes, and so will your child.Do not run to cover up for his/herblunders. If they make wrong decisions with their money, let them help themselves to come out of the situation. Do not pay off their credit card balance for them. You can always guide them and help them in financial planning to manage their expenses, but do not handhold them in every instance. This is because if they know that you are there as a last resort, they might repeat the mistake in future.
- Set the right example early in life
Children learn from their parents and it is your responsibility to bea good example for them. If you are someone who makes quick decisions and overspends, your child will do the same. If you are someone who saves a certain percentage of your income each month, your child will learn from it and follow your footsteps. Inculcate the habit of saving in your child and teach them the importance of investing right. Include them in your financial decisions so that they are able to learn about the best investment options. Take them out shopping with you and restrict to a budget or let them go shopping for themselves, but ask them to stick to a limit.
- Encourage them to get a job
Children in their late teens usually look for part-time jobs during summer breaks or post-exam vacations. Encourage them to do the same as this will not only give them a practical approach to life, but will also help them utilize their time productively. Do assist them in managing their wages. Their initial wages may not be very high; this will compel them to save money and invest. This way, they will not overspend or take a debt that is difficult to repay.
Once your children begin to earn, you need to bring financial discipline in their life and teach them to save money. You can help them choose the best investment options and inculcate the habit of investment in high-return assets. Teenagers might not be able to understand the importance of investing initially, but at a later stage, they will be thankful for the steps they took. If they know that financial planning has helped you and your family in the long run,they will adopt the same approach in their life.
The Angel Wealth mobile application is an ideal tool for your child. It has an ARQ investment engine that functions on algorithms and offers customized investment recommendations to you. It is free of human biasand will offerthe right investment options to your child. Download the user-friendly app today and let your child start investing.
Cheer from the Stands and Not from Your Home During the 2019 ICC World Cup
The most popular game in India is cricket and if you are a lover of this game, you may want to cheer from the stands during the ICC World Cup in 2019. England and Wales are jointly going to host the World Cup in 2019.
Although the official venues have still not been decided, it is anticipated that the final may be played at Lords while the opening game may be hosted at the Oval. Do you want to cheer from the stands in the upcoming ICC World Cup? Continue reading “Cheer from the Stands and Not from Your Home During the 2019 ICC World Cup”
How to Compensate for Missed Out Tax Deductions by Investing
To be a smart tax saver, you need to know your income and tax liability. The Indian government provides several options you may use to make better investment decisions while reducing your tax liability.
Are you stuck on Section 80C of the Income Tax Act, 1961 as is the case with most people? There is no doubt that this section offers some excellent tax-saving options, but there are several other avenues you may consider to save taxes, which are discussed below:
- National Pension System (NPS)
This pension scheme was launched in May 2009. To contribute to NPS, you need to open an account with the Central Recordkeeping Agency (CRA). You will receive a unique Permanent Retirement Account Number (PRAN). In addition to the Section 80C deduction, contributions up to INR 50,000 per year are eligible for exemption under section 80CCD (1B). Your money is invested in different asset classes, which includes equity, debt, and government securities. The returns on your investments will depend on the performance of these assets.
- Rajiv Gandhi Equity Savings Scheme (RGESS)
Under the RGESS, you may invest up to INR 50,000 in certain approved stocks to claim benefits under section 80CG. However, this benefit is available only when you invest for the first time. One reason this investment option is not popular is because of the high risk associated with stock investing.
- Education loan interest
If you have availed of an education loan, the interest paid for the year is tax-exempt under section 80E. However, unlike the principal repayment on a home loan, no tax benefit is available for the repayment of an education loan’s principal amount. This is one of the best tax-saving investments, but unfortunately, not many people are aware of this benefit.
- House rent allowance (HRA)
If you live in a rented home, you may claim tax benefits under section 80GG of the Income Tax Act. The deduction depends on your location. It is recommended you speak with your company’s human resource department to know the exact HRA benefit that is available.
- Home loans
In the last year’s Union Budget, Finance Minister Mr. ArunJaitley enhanced the interest benefit on a home loan. The deduction amount was increased from INR 1.5 lakh to INR 2 lakh per annum. In addition, INR 50,000 paid as home loan interest may be claimed under section 80EE starting from the financial year 2016-17. However, there are certain conditions that you must fulfill to be eligible for this deduction. These include:
- The loan must be availed of between April 1, 2016, and March 31, 2017.
- You must own the said property in your name.
- The borrowed amount must not exceed INR 35 lakh.
- The value of the home must not be more than INR 50 lakh.
- Health insurance
Medical costs are constantly rising. Therefore, safeguarding yourself against any health issue is important. A premium of up to INR 25,000 (INR 30000 for senior citizens) is eligible for tax deduction under section 80D. The benefits under this section also include preventive health checkup expenses.
- Charitable donations
If you donate some amount to certain non-government organizations (NGOs) in check, the same is eligible for tax benefits under section 80G. However, the deduction may either be 50% or 100% of the total amount based on certain criteria. This benefit must be claimed when you file your income tax returns (ITR).
If you have missed any of the aforementioned benefits, you may still opt for tax-saving options like the ones discussed below:
- Public provident fund (PPF)
PPF is a popular option because it provides a fixed rate of return based on the interest determined by the government authorities. The lock-in period for such accounts is 15 years. The principal, interest, and maturity benefits are all tax-free, which makes it one of the best tax-saving investments.
- Bank FDs
You may also invest in bank FDs, which have a lock-in period of five years. The interest rate is similar to regular deposits. However, the interest income is taxable, which reduces your actual return on investments.
- Equity-linked savings schemes(ELSS)
An ELSS comes with a three-year lock-in period. These funds invest in equities, which have the potential to deliver high returns. Additionally, the dividend and maturity proceeds on equity-linked savings schemes are tax-exempt, thereby making these a popular tax-saving mutual fund product.
Investment decisions are not random and require research and analysis. ARQ, the investment engine from Angel Wealth, does exactly this. It uses scientific methods to analyze and evaluate funds based on a billion data points. The best tax-saving mutual funds are customized depending on your risk appetite, lifestyle, and financial goals.
The entire procedure is automated, ensuring there is no human bias. Download the mobile app today and invest to reduce your tax liability.
5 REASONS TO GET A PERSONAL LOAN
We all dream of being able to afford everything we need and want without ever falling into a debt. However, that’s not the case. Oftentimes, things are out of our reach and we need to borrow money. That’s where a personal loan comes in. A personal loan is a type of “unsecured” loan for which you don’t have to put up a collateral. You simply borrow money from the lender and then pay it off gradually with interest. Furthermore, these are also flexible loans as they’re not meant for fixed purposes such as education, auto purchase, or home. They can be used for any purpose at all.
EMI Schemes: No Friend to Small Business
EMI schemes were brought into being as a ways of encouraging people to stay with small businesses and work with them. The benefits of such work included shares in the company, benefits for them the longer they stay as employees, and an overall boost in morale which comes with feeling more involved in the direction that the company is taking.EMI schemes allow people to become more important to the business than they otherwise would – the EMI scheme works both ways – it keeps people loyal to the business, and helps them see that working for it wouldn’t be the knock to their career they feared, and means that the business will have experienced workers. Continue reading “EMI Schemes: No Friend to Small Business”
What Different Types Of Loans Can You Get For Your Business?
As your business grows, it will need more money to fund it. Although it would be ideal if that money came from its profits, sometimes that just isn’t possible. It could be due to problems with cash flow, or because the money needed to expand is much more than you currently make, and it’s the expansion itself that will lead to a big rise in your profits. The good news is that getting a business loan is usually possible, although it will depend on your financial situation, and if you are using it to expand the business, the increase in profits should be more than enough to pay it back, including the interest. So what different types of loans can you get for your business? Continue reading “What Different Types Of Loans Can You Get For Your Business?”
How to Profit in a Changing Real Estate Market
2017 was a tumultuous year for the Indian real estate industry, with the central government implementing far-reaching reforms in the name of transparency and accountability. While these reforms caused a temporary dip in growth, they will ultimately introduce stability into industry dynamics and solidify real estate’s place as India’s preferred investment. Continue reading “How to Profit in a Changing Real Estate Market”
Want to Invest in SpaceX? Here’s How
SpaceX is heralded as the future of space flight. The firm holds a number of records, such as being the only private group to return a spacecraft from low Earth orbit and deliver cargo to the International Space Station. But is there a way you could actually invest in SpaceX as a sole investor? Here are a few ways you can do just that. Continue reading “Want to Invest in SpaceX? Here’s How”
How to Assess Among the Different Options for Loans – Metrics and Methods
Most lenders have understood the wide variety of reasons why individuals and businesses take a loan. Today, loan products are so versatile that they cover almost every sphere of life and every need that can be fulfilled. A loan can be availed for an education, home, an automobile, to travel, pay for a wedding or to enhance your business prospects. Continue reading “How to Assess Among the Different Options for Loans – Metrics and Methods”
Are ULIPs for You?
What is the ideal mode of safe keeping your hard-earned money? Maybe a locker in your house? Nah… The money doesn’t grow and can easily be stolen. A savings bank account? Nope… The money is safe but ten years down the lane its real value would have degraded to far less than today. O Yes… What about fixed deposits! They offer protection and growth too…Indeed! But you can do better than that. Behold ULIP. Continue reading “Are ULIPs for You?”
Two Wheeler Insurance — A Quick Guide
When you own a two-wheeler, you need to make sure that you take care of it and maintain it properly too. It is your companion on the heavy-traffic roads of the city, and you sure it functions optimally at all times. Apart from its maintenance, you also need to get two-wheeler insurance, as it is mandatory under the Indian Motor Vehicles Act, 1998. Continue reading “Two Wheeler Insurance — A Quick Guide”
How Can Financial Institutions Prevent Money Laundering?
With thousands of global transactions occurring on any single day, it can be overwhelming for banks to trace the origins of laundered money. This is an especially serious issue in the U.S., where billions of dollars are smuggled into the country per year. Though there is an anti-money laundering (AML) legislation in place to combat this illegal practice, there is still much that financial institutions can do to fight against the problem. Here are some of the many ways in which banks and other financial institutions can work in order to prevent money laundering activities. Continue reading “How Can Financial Institutions Prevent Money Laundering?”
An investment resolution that you won’t break
We are at our optimistic best in the month of January. We make resolutions at the turn of each year to better some aspects of our lives. Ranked high among our priorities is to get a better hold of our financial lives. Unfortunately though, as the year progresses, the resolve fades away and we are back to square one. Continue reading “An investment resolution that you won’t break”
How To Choose The Best Financial Advisor
The financial landscape of today can be quite difficult to navigate. Economic and political uncertainty along with sweeping tax changes can leave a hazy cloud of confusion around your financial future. This may sound dark, but it is worth noting that every hazy confusion cloud does have a silver lining. And that silver lining is a qualified financial advisor. Continue reading “How To Choose The Best Financial Advisor”