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5 Things Every New Grad Needs to Know About Money … From the Money Professors

When East Carolina University dismissed for the semester on April 28, 2015, 500 students left campus $100,000 richer.

What did these undergrads have in common?

All 500 had completed a personal finance class helmed by Mark Weitzel, Bill Pratt and Len Rhodes—a.k.a. “The Money Professors.”

For the past five years, the trio has challenged their students to collectively squirrel away $100K over the course of a single semester—and most years, students surpass the challenge.

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Rebalancing of Portfolio

Portfolio Re-balancing is important?

“Re-balancing of Portfolio” is the term, which is widely used in the mutual funds industry, by the so called media-prophets & with most of the advisors with banks/ brokers/ CFP.

What does re-balancing means? And how does it applies to one’s portfolio?

As per Investopedia: Re-balancing is the process of buying and selling portions of your portfolio in order to set the weight of each asset class back to its original state. In addition, if an investor’s investment strategy or tolerance for risk has changed, he or she can use re-balancing to readjust the weightings of each security or asset class in the portfolio to fulfill a newly devised asset allocation.

In an ideal scenario on portfolio recommendation, which is based on tenure of goals & the risk tolerance score,

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Want to cut risk and tax without compromising on returns?

While equity mutual funds are expected to beat other class of funds in the long term, short-term volatility is unbearable for some investors. For them, balanced funds are a better option because their equity exposure is usually restricted to 65-75%, and the debt portion of 25- 35% lends stability to the fund. “Though the returns from balanced funds will be lower than that of equity funds in the long term, their volatility will also be lower. So, on a risk-adjusted basis, it should give better return on a 5-7 year holding period,” says Vikram Dalal, Managing Director, Synergee Capital Services.

Both equity and debt are expected to do well in the coming years, because the expected decline in interest rate will be good for both asset classes. “Balanced funds make immense sense in periods like this, when both equity and debt are expected to do well,” says Nikhil Kothari, Director and Chief Financial Planner, Etica Wealth Management.

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Common Mistakes You Should Avoid While Investing to Save Tax

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A young married couple walks into the local branch of a private bank on a cloudy, cold weekday of January. Both of them are getting late for office, but have enough time to start a tax-saving fixed deposit (FD).

The bank executive, instead, sells them a ‘better’ product, whose gains are non-taxable, unlike FDs.

The product that he offers is a tax-saving plan that also gives them life cover, guaranteed returns and bonus. And guess what, they can withdraw the money after five years, when they will receive the premium along with added bonus. They think it’s a good deal and write the cheque.
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5 ways to leverage your house to fund your goals

Many dream, most have ambitions but everyone has a goal.  Did you know that you could leverage your property to finance your goal? When a bank sanctions a loan in your name, it needs an assurance that you will pay it back. However the bank uses your property or any of your assets as collateral for the loan disbursed. Unfortunately, in future if you aren’t able to repay the loan, the bank will take the legal possession of your asset and will ultimately auction it out.

There are 5 ways you can leverage your property to meet your goals.

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7 Top Home-Buying Mistakes People Often Make

7 Top Home-Buying Mistakes People Often Make

Insanely low mortgage interest rates—and the knowledge that they’ll probably go up again—make a lot of people feel like it’s time to buy a house right now. And maybe it is … if you go about it the right way.

Buying a home is a major purchase (to put it mildly), and there are plenty of ways to trip up. But don’t worry—we’ve got your primer right here.

1. Don’t … buy a house if you’re planning to move again soon.

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