Miscellaneous (13)

These are times of uncertainties! Who could have predicted the address to the nation by the Prime Minister on the evening of 8th November 2016. Remonitisation have become painful for many for standing in long queues. More uncertainties are in store in the coming days! GST will overhaul the indirect taxation system in the country. Short term pains but long term gains? Now coming to personal finance; there is a need to question our core beliefs and think differently. Let us take income, assets, liabilities, expenses and retirement!

Income: Where does your income come from? Is it salary from your employer? This is an   external source. It is like water flow in a river. But looking it from a bigger picture, the real source of river water is the spring. Similarly the source of income is not the monthly salary but your skill, time, intelligence and experience. If you focus on up gradation of your skills that generates your income streams, you are more likely to preserve a steady income in the long run. Conversely if do not upgrade your skills in tune with the demand of the times, you are more likely to miss out on generating income. Think for a moment about the prospect of losing your job, look at your skill sets. They may be more valuable if you have kept them honed. Do not ignore skill building and networking even after you have settled in a job.

Yesterday we went to buy vegetables from Vishnu, our local vendor. With limited cash in hand we were wondering how to pay him? We were surprised to see a board with paytm sign in front of the shop. After completing our shopping, I took out my Smartphone and made the payment through Paytm. The transaction was successful and the vendor got an SMS alert. It was so smooth and a big relief!!

If you want relief from the queues in front of the ATMs and Bank branches, it is not difficult. You can become less dependent on cash by making online payments. As may be observed below, if a family has a monthly expenses of Rs 50,000/-, they need not keep more than Rs 2,500/- of cash with them. A big relief from the long queues!!

(Open between 1st Sept to 9th Sept 2016)

It is a government securities denominated in grams of gold. They are substitutes for holding physical gold. Investors have to pay the issue price in cash and the bonds will be redeemed in cash on maturity. The Bond is issued by Reserve Bank on behalf of Government of India. The bonds are held in the books of the RBI  or in demat form eliminating risk of loss of scrip. The application form will be provided by the issuing banks/designated Post Offices. It can also be downloaded from the RBI’s website. Banks may also provide online application facility.


KYC will be completed by the issuing banks/Post Offices. Any Individual, HUF, Trust and Company can subscribe to these bonds. The maximum holding period is 8 years with lock in period of 5 years. It carries interest rate of  2.75% pa. On maturity one can get the equivalent amount of market price of gold. Loan Facility is available against gold Bonds. One can possess gold on paper and need not  take risks of physical safekeeping.

 We’ve been writing to you regularly on latest on financial markets. I want to take this opportunity to share some relevant points and reemphasize some of our repeated advice exchanged during our interactions. But Good advice is boring and doesn’t change with time. 

1)   The 3 key factors to success in investing are long term orientation, patience and discipline.

2)   The minimum holding period for equity investment is 10 years. This is only minimum. The preferred holding period should be in decades.


The notion of ‘Bank’ in the mind of general public implies the image of a trustworthy and secure institution. We generally do not scrutinize the bank statements. We take for granted all the entries in the statement presuming it to be genuine and do not raise any sort of doubt. But the recent survey by ET Wealth has revealed that three out of five bank customers are not satisfied with bank and its practices. We discuss some of the reasons for their dissatisfaction.

Mis selling : It is the experience of many customers that the Bank relationship managers’ are making strong sales pitches for  endowment life insurance plans. The sales pitches are influenced by the commission rates of financial products irrespective of the suitability of the products .Endowment life insurance policies offers commission of 35-40% on the first year premium.

Recent flood in Chennai was totally unexpected and people living in Chennai were taken unawares. Water rushed into homes, lives were lost and properties damaged. Millions of personal documents of people have been lost or damaged. In panic, fleeing people have abandoned them. Important papers like Property titles, Insurance policies and Medical records etc were not to be found now. We offer three solutions on digitizing and e storing them.

Firstly, we had  blogged  on 12th June 2013 on digitizing and  e- storing the documents,http://maxsecfp.in/component/k2/item/58-maintain-your-documents-online which has since been visited more than 46,000 times. It has been found useful by many. 

Start ups revolution is happening in India. Many start-ups have come to solve your day to day problems of accessibility and availability various services in the different fields. Many of them have apps those can be downloaded in the smart phones. The following are the some of the online services;


Practo(Doctors) :  This site gives detailed information about  doctors within your locality along with their   experience, clinic timings and fees. 

Govt. of India has announced Gold Deposit Scheme recently. India is the largest consumer of the gold and Major part of that is imported. A huge amount of India’s wealth is lying idle in form of gold and it is not productively contributing to the India’s growth story. To tackle this, Government of India has come out with the two new schemes primarily targeted at tapping   the idle gold with Indian households and institutions and further giving an alternative   for actually buying the physical gold. The two schemes are Gold Deposit Scheme and Gold Bond Scheme. Gold Bonds will be issued by RBI and Gold Deposits will be implemented through Banks.

On 18th June 2015,we conducted a Financial Well being Camp for Business people and Professionals of Raigad Chambers of Commerce and Industry at K star hotel, CBD Belapur.The sessions were addressed by the undersigned and Mr Amit Trivedi,expert trainer.The participants have provided very good feedback on the programme and we would like to share the deliberations on Investment Planning.

Asset Classes

There are four major asset classes;Gold,Real Estate,Debt and Equity.Gold and Real Estate are physical assets whereas Debt and Equity are financial assets.


We always hear of social security system in the western countries and lack of it in our country. But the new central government's initiative on financial inclusion has now made it possible for each one of us to enable the simple earners e.g drivers, maids at our homes and many others belonging the poorer sections of the society around us to lead better lives.

What can we do?


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