Has the slowdown affected you?

Chitra is a home maker and finds it very difficult to manage the family budget now days and enquired from her husband Anil, who is employed as a Chartered Accountant in a MNC about when will the woes come to an end? Anil explained about the emerging scenario on depreciated rupee, high current account deficit, higher interest on Bank loans, higher consumption expenses and reduced savings. He even warned about either reduced salary or job loss. Both decided to take the help of a professional financial planner.The Financial Planner touched the ten areas which can help them to face the impact of slow down;

Maintain your documents online!

Mr. Suresh   is 52 years old and staying with his family in Navi Mumbai. He is working in an IT company in Mahape. He owns two apartments, one in Sanpada and another in Pune.He has also invested in   land at Karjat.  Mr Suresh has made a Will to avoid future litigation between his children. Initially he kept all his documents in bank lockers, for which he is paying locker charges of Rs 5,000/- pa. He finds it very inconvenient to visit the Bank every time to access to his documents. Further he has been told that he has to pay extra charge for each visit. Suresh was advised to safe keep his documents online. It’s also beneficial with respect to financial planning as every financial documents is easily accessible.

What is your relationship with money?

Ashok, studying in class VIII, plays cricket in the lane next to my Belapur, Navi Mumbai office. Last week he walked to me and asked “Can you please guide me how to make big money?” I was surprised and felt disturbed with this unconventional question. On detailed chat, I gathered that he is influenced by TV channel programmes on Cricket betting, Scams, and KBC and so on and so forth. Although I advised him to focus on his studies, I felt guilty by being a mute spectator on this changing relationship with money in the society today.

What is Direct Option in Mutual Fund?

Mutual fund is a preferred investment product to achieve the long term goals. It also constitutes the major part in one’s investment planning strategy. Mutual fund investors have an option to invest in MF schemes through direct route wef 1st January, 2013. Investor can buy units directly from the AMCs and there is no need to approach distributors, agents etc for buying MF schemes through Direct option.

Basics of Insurance Planning

Insurance is a form of risk management and it is used to transfer of risk of death, cost of medical treatment, risk of bodily injury by accidents, theft of house hold articles etc by paying certain amount known as premium. Two types of insurance are available, life insurance and general insurance. General insurance covers health, motor, fire, marine and other non traditional insurance. The contracts of general insurance are for one year whereas life insurance contracts terms are more than a year.

Financial Planning at different Life stages

Life changing events, sometimes for the good such as getting married or joining a new job and sometimes for worse such as loosing the bread winner of the family or damage to the home by natural calamity will have financial implications on personal finance.

A professional financial planner can help to analyze the implications on your financial decisions and make a prudent financial plan to achieve your life’s goals. The goals may cover areas such as buying a house, meeting lifestyle expenses, educating your child in India or abroad, meeting marriage expenses of your child, planning a dream vacation abroad or creating retirement corpus.

Managing Difficult times : Financial Planning

Abhay is worried a lot now days. The family budget has gone out of control due to rising costs of grocery, vegetables and other household expenses. The annual vacation to the native place near Bhubaneswar  during Durga Puja has to be abandoned this year. The EMI of the home loan has increased by 20% since last  year due to hike in interest rates by his bank .The school fees  for  the son Subodh and  daughter Malini has gone up by more than 18% this year. 

Fee Based Financial Planning

Fee Only Vs Commission Based Financial Planner

When deciding on choosing a financial planner, you should understand the difference between fee only financial planners and commission based financial planners. By definition, a fee only financial planner charges fees for their advice on financial plan. Unlike fee only financial planners, commission based financial planners earns from the financial products that you buy.

Why invest in Gold ?

Pravin and his wife Sudha are debating over the last one week whether they should buy token gold ornament this Diwali or they should invest in gold. They approached a Financial Planner and sought his advice. The Financial Planner enquired about their goal and ascertained that they want to save for the marriage of their daughter, Mitali who is 6 years old now. He analysed the asset allocation and found that percentage of gold is very low in their portfolio and recommended that they should hold at least 10% gold in their portfolio. On being asked about the reasons for investing in Gold, the Fee Only Certified Financial Planner reasoned the following factors favoring investing in gold for long-term.

Lessons from Citi Bank fraud

Fraud is defined as “Deceit, trickery or breach of confidence, perpetrated for profit or to gain some unfair or dishonest advantage.”Whereas misselling is defined as “Ethically questionable practice of a salesperson misrepresenting or misleading an investor about the characteristics of a product or service. In an effort to make a sale to a potential customer, a financial products salesperson could leave out certain information or describe a financial product as something the investor urgently needs, even though sound financial judgment would come to the opposite conclusion.”Indian Financial Services sector are replete with instances of fraud and misselling which occur time and again.

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