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Merchant Navy – Life at Sea, wealth at home, really?

merchant-navy-investment-plans

Quote from a merchant navy sailor: *
“If one has a bucket list, sailing on a merchant ship should be on it. It gives you the perspective of what is it like to witness the spectacular grandeur of 3/4th of our planet in a ship’s setting. The experience is very humbling.”

Sounds exciting… but other than missing the family life, there is a big-gap in terms of financial planning, investments& execution. More so with the fact that, half a year (or more) they are sailing, without having any access to the advisors, markets or simply, how to manage their finances?

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March 15, 2018 Financial Planning, , , , , 0 Read more >

MWP Act – Married Women’s Property Act 1874- INSURANCE TERM PLAN

Insurance-Policy-with-MWP

One interesting & great legal tool in hand, but hardly been pushed by anyone.

What it means; at the time of initiating (buying) a term insurance policy, one should also sign this document. This document legally ensures that, post the policy holders demise, only wife will receive the policy cover value and not the creditors (policy holders outstanding with others) or relatives.

We take Term-Plan, to ensure the well-being of our family, specifically wife and children in case of any unforeseen events. Therefore, ensure that you sign this document.

Once a policy is availed under the MWP Act, it may not be attached by courts for repayment of your debts. Only your wife and children will be entitled to the Sum Assured in the event of your demise.

March 14, 2018 Life insurance, , , , , 0 Read more >

Market Meltdown: Shall I Invest or Wait?

Market Meltdown

“Alice: Would you tell me, please, which way I ought to go from here?
The Cheshire Cat: That depends a good deal on where you want to get to.
Alice: I don’t much care where.
The Cheshire Cat: Then it doesn’t much matter which way you go.
Alice: …So long as I get somewhere.
The Cheshire Cat: Oh, you’re sure to do that, if only you walk long enough.”  – Lewis Carrol, Alice in Wonderland

Every time the stock markets react, I’m reminded of the above dialogue. Firstly, many who look upon stock market as source of wealth creation have not decided their financial goals. Secondly it is important to sit back and understand the event that lead to fall or even rise, instead of reacting. Let’s look at each of the above points further deep.

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February 27, 2018 Mutual Funds, 0 Read more >

Frequently Asked Questions (FAQs) – Taxation of Long Term Capital Gains (LTCG)

FAQ
  1. What is the meaning of long term capital gains?
    Long term capital gains mean, gains arising from the transfer of long-term capital asset. The Finance Bill 2018 proposes to provide for a new long-term capital gains tax regime for the following assets:

    • Equity Shares in a company listed on a recognised stock exchange;
    • Unit of an equity-oriented mutual fund; and
    • Unit of a business trust.

    The proposed regime applies to the above assets, if the assets are held for a minimum period of twelve months from the date of acquisition.

  2. When will the tax be levied?
    The tax will be levied only upon transfer of the long-term capital asset on or after 1st April 2018.
  3. What is the method for calculation of long-term capital gains?
    The long-term capital gains will be computed by deducting the cost of acquisition from the full value of consideration on transfer of the long-term capital asset. (more…)

February 9, 2018 FAQ, , , 0 Read more >

How Mutual Funds will be taxed now – Budget 2018-19

LTCG-Tax

How Mutual Funds will be taxed now – Budget 2018-19

Equity Mutual Funds

Fund Type Short Term Capital Gain Long Term Capital Gain (> 1 year) Dividend Tax
  • Equity Fund
  • ELSS Fund (tax saving)
  • Hybrid Fund – Balanced (Aggressive or Equity oriented)
  • Arbitrage Fund
 15%
  • Gain up-to 1Lac–Zero Tax
    exempted
  • Gain > 1lac – 10% Tax
    without indexation
  • Cost on oldinvestments
    based on 31st Jan 2018 closing price##
 10%

## Which means, if you have invested INR 100 on 1st Jan 2016, and if you redeem on 2nd Feb 2018 @ INR 155, LTCG will be calculated based on the price on 31st Jan 2018. Let’s say on 31st Jan 2018, the value was INR 150, in-short you have to calculate LTCG on INR 5 only, provided the total gain exceeds 1lac.

** Dividend Tax; after adding 12% surcharge & 4% cess = 11.65%
** Capital Gain tax calculated(Short term or Long term), will also include surcharge based on your total income and 4% cess.

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February 2, 2018 Budget, , , 0 Read more >

Budget Simplified – FY 2018-19

budget 2018-19

Talking to people around on budget this time; most of them are unhappy, as budget has not kept pace with the expectations, like for a salaried (US), no announcements on tax slabs, or tax exemptions 😉.

But for a budget, with elections just around the corner, our dear finance minister has maintained a fine balance on populist measures, economic growth & stability.

Let me highlight, key takeaways from the budget:

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February 1, 2018 Budget, , , , , 0 Read more >

Financial Planning for Woman

financial planning for women

We have always seen our mothers on the front-foot, towards managing the house, family, husband, kids, or virtually everything in the house. Also referred as a “Tiger-mom” towards handling kid’s education, other activities, with a selfless motive, to ensure that kids just excel. And the story continues,with our dear spouse as well (wife). 😉

But when it comes to finance or investments, they just give it up, either it’s the father, or the dear husband, who becomes the driver on managing investments.

But I still recall, whenever one need handy cash or some contingency funds, pop comes the money, mostly as cash or some unknown Bank FD/ deposit.

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January 20, 2018 Financial Planning, , , , , , 0 Read more >

SIP – Stop, Switch, or Increase, what do I do?

SIP--Switch

With market at an all-time high, we been getting queries in all possible formats from our customers, on what do I do with my SIP (systematic investment plans) in Mutual Funds?

My suggestion; find your own reason on what you want to do with your SIP. But strictly, do-not get swayed by the market jump or the recent surge, or even a dip in the future(which can also happen). As per studies conducted on the human behaviour, most of the time we react or make panic decisions based on the external factors,and miss out on the larger picture, or the long-term benefits.

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January 13, 2018 Mutual Funds, , , , 0 Read more >

MANAGE YOUR MONEY BETTER

MANAGE YOUR MONEY BETTER

Article published in Mumbai Mirror (Times of India) on 5th Jan 2018. Link: https://mumbaimirror.indiatimes.com

“Spend less, save more” is a great resolution, but how do you actually achieve it? An expert offers advice.

The definition of insanity is doing the same thing over and over again and expecting a different result. Yet, when it comes to finance, that’s exactly what most of us do. If you’re determined to make this the year when things finally start to go your way, all it requires is some sensible shifting — which means, move out of wrong loans, investments, expenses and move into the right ones. Here are a few suggestions on how to achieve this.

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January 5, 2018 Budget, , , , , , , , , , , 0 Read more >

NEW YEAR RESOLUTIONS!

New Year Resolution

I will lose Weight,quit Drinking, get a new Job, plan exotic Vacation, read Books, spend less time on Facebook, run Marathon, do Charity… and the list goes on 😉

Let me introduce you to one more resolution, i.e. “Financial Reboot”.

Just imagine, you have a button on your computer– “Reboot Finances”, by clicking it, you have the answers to all your financial worries… RESET.

Sounds great! Now you must be wondering, how?

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December 29, 2017 Resolutions, , , 0 Read more >