I received a mail from a friend of mine who attended a seminar on “The Ombudsman system in Insurance” in which the Insurance Ombudsman was the chief guest. The mail (edited a little) goes on like this ; Quote “The Ombudsman’s position is a unique one: his decision is binding on the Insurance company. He cited certain examples, which I feel is very important for everyone to read and understand. 1. It seems 26% of the complaints concerning life insurance were against a certain group of companies. Surprisingly, this company has a market share of only 2%! He didn’t tell us the name […]

The single party majority verdict in the recently held parliamentary election and forceful promises made by the Prime Minister to improve the economy has triggered bullish rally in the current share market. Once the economic policies of the new Government get implemented and investment cycles start kicking, the market may reach new heights. Many retail investors have abandoned the equity market earlier. But it is right time to invest in equity now. The current situation provides an opportunity where the probability of market going up is high vis a vis the downside risk. Goal based investing; The first question to […]

How much experience do you have?  Financial planning involves understanding of investing behaviour, risk profile etc and the more the experience of the Financial Planner, the better. Hence experience should be a major driver behind your decision. What are your Qualifications?    A suitable qualification such as Certified Financial Planner and SEBI Registered Investment Adviser are desirable which indicates the Planner is serious of   his/her profession.   Do you only plan or also sell?The planners who sell products may not provide unbiased advice.You should prefer a planner who is independent of product sales but does research on various products. How do […]

According to a BBC study, only 4% of the Indians have adequate retirement savings. Most Indians get serious about retirement savings only in their 40s or 50s. Are you also facing a similar situation and not saved enough for retirement? The first step in retirement planning is estimating the retirement corpus. It will depend on your life style, monthly expenses, inflation, and investment modes. The next step is taking stock of your  retirement benefits from your employer i.e. gratuity, leave encashment, pension  and any other income /assets meant to be used post retirement .The balance of the corpus should be […]

Suyash, my neighbor heard about his colleagues discussing about tax benefit on buying a second home. He could not understand the implications and approached me. I explained him as follows,  There are advantages in investing in a second home and some of them are as follows: The interest paid on the second home loan is tax deductible and there is no upper limit unlike the case of self occupied houses where there is a limit of Rs 1, 50,000/- on interest. Second home can generate inflation beating rental income which will be very useful post retirement. Also, it will be […]

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 […]

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.  I recollect the preaching’s of our Swamiji to the American […]

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.   Why insurance / risk planning is important? Now a day’s everything is uncertain, nobody can see the future. If any unfortunate event will […]

WHY DO YOU NEED FINANCIAL PLAN? 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 […]

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. The default in credit card payment has added to the problem. The monthly SIP(Systematic investment Plan) in […]