Here is a cost benefit analysis of investing in stocks directly and through mutual funds.
Falling interest rate has forced many investors to look beyond fixed deposits in search of better returns.
Most people focus on returns and chase products that offer the best returns at any point.
These four mistakes must be avoided when you plan for your retirement.
Your best bet in these situations is to work to a plan. When you know where you are going & you know you will get there if you stick to the path, why worry?
We pay for all almost all services we avail of. It makes sense to pay for services as one can get the right advice which helps to achieve our financial goals.
It is not how much you earn that counts, but it is how much you save that decides if you achieve your financial freedom.
Traditional pension plans offer low rate of return in accumulation phase and annuities paid by pension plans are taxable in the hands of the annuitant.
Though it may sound a goal too big and too far, retirement planning, if begins early in life can be less cumbersome.
They need to ask the right questions while forms are put before them to sign. Simple questions probing about features & benefits of investment products and how they address their needs.
Risk averse investors, especially retired individuals want to take exposure to equities. But find it difficult to invest in equities due to possibility of capital erosion. DTP can offer them a means to invest in equities without risking capital.
Union budget is seen as a let down by many individuals. However there are some positive announcements that can bring in some enhanced benefits
Budget may not introduce big changes. However there can be some small changes in tax rates, tax slabs and modifications in instruments that fetch tax exemption.
One should not have fixations about asset classes and be prepared to invest in an appropriate basket of securities as per the dictates of the life cycle
We find clients who come to us for advice and then start advising us! Some of them come with fixed ideas of what they would want in the plan, irrespective of whether it is desirable or not. It is in those cases, we have friction. We may not know about it in the first consultation or when they send the information.
Retirement is another aspect that talks to the deeps. People want to have enough in retirement so as to be able to live in comfort. People dread the possibility of depending on their children, which today is indeed an uncertain prospect.
There is a way to manage liquidity/ contingency funding requirements while earning a decent return on the amounts deployed towards such funds.
Joint bank accounts are fine when it comes to expenses. Each spouse can transfer a predetermined amount into that account for expenses. But from an income tax point of view, it is better to maintain separate accounts from where the investments are made.
According to Suresh Sadagopan, Founder of Ladder7 Financial Advisories, in the case of mutual fund dividends as the Net Asset Value (NAV) goes up and the mutual fund house wants to reward the investors.
According to Suresh Sadagopan, Founder of Ladder7 Financial Advisories, The SIPs give the advantage of rupee cost averaging, by which we mean that whether the market is low or market is high.
According to Suresh Sadagopan, Founder of Ladder7 Financial Advisories, in the case of SWP you already have a corpus and you want to drawdown some money on a systematic monthly basis, quarterly basis, weekly basis or whatever basis you want.
Suresh Sadagopan, Founder of Ladder7 Financial Advisor explains about colour coding of mutual funds.
According to Suresh Sadagopan, Founder of Ladder7 Financial Advisories, you need to take a life insurance only if there are dependencies or when there are liabilities, not otherwise.
According to Suresh Sadagopan, Founder of Ladder7 Financial Advisories, the correct way will be to benchmark mutual funds against the index which has been chosen by that particular scheme and benchmark it against the category.
According to Suresh Sadagopan, Founder of Ladder7 Financial Advisories, debt mutual funds also invest in the same category in the sense that they are 100 percent invested into debt category only and this is also liquid from your standpoint.