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 […]

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.   How Do Commission Based Financial Planners Get Paid? Similar to an insurance agent, a commission based financial planner makes money when you buy a financial product such as life insurance. In many cases, a commission based financial planner will […]

A family typically has various needs. A regular income & a house to live in alone is not enough.There are other needs like providing for good education & future needs to children, going for vacations and finally leading a financially secured retired life. The risk to the family arises when there are uncertainties in meeting any of the needs.Inflation, high cost of education, increase in longevity & consequent long retired life and high medicare expenses have added to the financial burden of the family. But how many ponder over what would happen to their family in case they pass away? Will […]

Life insurance covers the risk of death; health insurance covers the risk of sickness; where as personal accident insurance covers the risk associated with accidents. If the life assured is seriously  injured in an accident and disabled either temporarily or permanently, he/she will not able to work and earn. To minimize the financial hardship of the life assured and his/her family members, the personal accident insurance provides the financial support. It’s an important component of insurance planning; hence personal accident insurance is very essential. Life insurance cover without personal accident cover is inadequate from risk management point of view. The personal accident policy […]

It is essential to know a NRI’s residential status for calculating his/ her tax liabilities because certain income of a NRI or a Resident but not ordinary resident (RNOR) is not taxable in India. Under section 6 (1) of income tax Act 1961, an individual is said to be resident if he/she satisfies at least one of the basic conditions.   a. He/She is in India in the previous year for a period of 182 days or more. b. He/She is in India for a period of 60 days or more during the previous year and 365 days or more during […]

BANKS A.    Five years Bank FDs (Maturity value for Rs 1,00,000/-) Sl no Some Selected Banks Interest Rate ( %) Quarterly interest (Rs) Maturity value 5 years (Rs) 10 years (Rs) 1 IDBI bank 9.50% 2,375 1,57,424 2,47,823 2 State bank of India 9.25% 2,313 1,55,635 2,42,222 3 ICICI bank 8.75% 2,188 1,52,106 2,31,362 4 Bank of India 8.75% 2,188 1,52,106 2,31,362 5 Axis bank 8.50% 2,125 1,50,366 2,26,098 B.    Senior Citizen: Five year Bank FDs (Maturity value for Rs 1,00,000/-) Sl no Selected Banks Interest  (In %) Quarterly interest (Rs) Maturity value 5 years  (Rs) 10 years (Rs) 1 IDBI Bank […]

Results have been declared for the 10th and 12th examinations. Anil who was studying in DAV public school has passed X standard by securing highest grade. His parents are worried about his future. They want him to be a Doctor. But Anil is interested in Architecture. His younger daughter Anima is studying in 4th standard and wants to become a doctor. Like Anil’s parents, most parents are worried about the future career of their children and increasing cost of higher education. During the last 5 to 7 years, higher education inflation is in the range of 14-16% per annum.  If the cost for […]

When one comes to vacation planning, one has to make up his mind about the destination and the number of days. Then follows how to get there? Where to stay? What to see? etc. There are many online sites those can help us in organizing vacation planning and in reducing 15-25% of the vacation expenses. The sites that can help in organizing on vacation planning are incredibleindia.org for vacations in India and Bootsnall.com for vacations abroad.   A. Right time to travel Starts vacation tour just before peak season or after it is over and book flight tickets and hotels in advance preferably before two […]

Capital gain from any asset other than shares and mutual funds, if it is held at least for three years or more is called Long Term Capital Gain( LTCG) otherwise it is called Short Term Capital Gain(STCG). LTCG will be taxed at a rate 10% without indexation and 20% with indexation. The option lies with assessee. But STCG will be taxed as per tax slab applicable to that person.   Shares/ Mutual funds If one hold shares or mutual funds at least for one year or more, it is  treated under LTCG or else it is STCG. LTCG from shares […]

Retirement is a long awaited hope for freedom. Mr Ajay who recently retired after 35 years in service finds it very difficult in Mumbai. Both the children Son,Pranab and Daughter, Prakriti have preferred to settle in USA. Ajay and wife Sunita find the monthly pension not adequate for the monthly expenses. All the expenses are increasing continuously. Sunita needs regular visit to the hospital for checkup which cost not less than a thousand rupees for every visit. What ever investment was made in shares /Mutual Funds on the advice of a neighbour broker have declined in value. Ajay desperately trying […]