Taxation of Franklin Segregated Funds Payout

There is a lot of confusion about how the payout from Franklin Segregated funds (Vodafone Idea papers) will be taxed. After reading a lot about the taxation for the past 3 days, I think I finally have a good idea. If you received a payout from Franklin, you will find all the details on how to calculate your tax. I can tell you upfront that we are at a tax disadvantage. Moreover, you might have to pay advance tax depending on how much you received. In the rest of the post I will be using Franklin Ultra Short-term Bond fund … Continue reading “Taxation of Franklin Segregated Funds Payout”

Franklin Ultra Final Payment From Vodafone Segregated Fund

Yesterday, Franklin Templeton announced that Vodafone Idea has made full payment of the principle along with interest. If you recall, a few funds from the AMC were holding Vodafone Idea papers which were downgraded to junk. As a result, Franklin has moved those papers to a segregated fund. Franklin already made a partial payment last month after it received interest payment from Vodafone. Now the AMC will be paying out the full amount from the segregated funds. Remember that this is the payment from the segregated fund and has nothing to do with the winding up of funds. The winding … Continue reading “Franklin Ultra Final Payment From Vodafone Segregated Fund”

How To Make Bio-Enzymes – Part I

As a continuation of the previous post on how to reduce and reuse the wet waste produced at our homes, we need to learn about bio-enzymes. Bio enzyme is basically homemade vinegar made by fermenting left over fruit, vegetables, flowers, and leaves. We can use whole fruits or just the remains of the vegetables, i.e., peels and cuttings alone. As a household cleaner, bio enzyme can be used for your bathrooms, mopping floors, clean pesticide residues on produce, dish washing, as laundry detergent etc. It can be used to clean anything and everything literally. It is used to eliminate odor, … Continue reading “How To Make Bio-Enzymes – Part I”

Are Sovereign Gold Bonds a Good Investment Option?

Sovereign gold bonds are open for subscription starting today (July 6, 2020) and will end on July 10, 2020. Should you invest in them? Sovereign gold bonds are issued by RBI and thus are one of the safest investments. If you like to invest in gold, but don’t want to hold physical gold, this is a good option for you. The issue price is set at Rs. 4,852 per gram, but if you buy online, you get a discount of Rs. 50. You have to buy a minimum of 1 gram up to a maximum of 4 kgs. But is … Continue reading “Are Sovereign Gold Bonds a Good Investment Option?”

Rolling Ball Machine Construction

After building a doll house and disk drop board, my daughter had another idea for a cardboard project. This time she wanted to build a rolling ball machine. Again, as usual, I comply. I had no idea of what she had in mind. So I asked her to do a drawing and explain how the machine is supposed to work. She drew a spiral on paper, cut it out along the pencil drawing. Then, pointing at the dangling spiral, she said “that is what I want”. She explained to me that the balls will roll from the top and spiral … Continue reading “Rolling Ball Machine Construction”

Two Years Into Retirement

This is going to be a really short post. I just completed 2 years in retirement! On this exact day in 2018, I was commuting back to home from work for the last time. It was one of the happiest day of my life. Nothing much has changed from what I have already wrote in my post after 1 year into retirement. The only thing that has changed is that I am going through a bad market cycle for the first time since I started investing in 2011. Hopefully I will come out strong after this. You already know pretty … Continue reading “Two Years Into Retirement”

Does Lightening Strike Twice?

You would think that one would learn from past mistakes. But no, not me apparently :). With in a week of the last major electronic equipment blowup, there was another lighting strike blowing up another router. That and more coming up soon. Stay tuned. If you have read my previous post, you already know about the lightning strike that fried a bunch of my expensive electronic equipment. The electric surge came through my internet service provider cable, burning my router and a few other things. Since it happened during lock-down time, I could not buy a new router. Thankfully though, … Continue reading “Does Lightening Strike Twice?”

Lightening Strike Destroyed My Electronics

This post was long overdue. It happened a while ago, but I have been postponing it since there were so many other important topics to cover. While the year 2020 have given us a massive blow in the form of COVID-19, I was sustaining some other injuries along the way ;). Not physical ones though. Early in the year Franklin Ultra dropped the bomb that Vodafone papers will be marked to zero. Then COVID-19 issues started in India and the country went into a lock-down. Next, Franklin wiped out a good portion of my investment by winding up six funds. … Continue reading “Lightening Strike Destroyed My Electronics”

Higher Education for Homeschooled Kids

Friends, family, and readers of my blog alike have all asked us this question — what about your kid’s higher education? Interestingly, given the COVID situation, several people have suddenly started showing interest in home schooling. More people have asked us about our experience or advice than before COVID. I am glad that more people are now interested in the topic. While unschooling or homeschooling sounds like a nice idea, there are so many questions in one’s mind. One among them is about going back to traditional school/college or university if and when the kid chooses. But before going too … Continue reading “Higher Education for Homeschooled Kids”

Goal Based Investing

So far I have been giving financial advice for the singular goal of early retirement. But many of you probably have multiple goals. May be you want to buy a house, save up for kids education or planning an international vacation in a couple of years. Whatever might be your goal, you need to have a financial plan. Each goal needs to have a different corpus, asset allocation and redemption plan. If you rather watch a video on the same topic, check out the YouTube video at the end of the post. Start with the goals If you want to … Continue reading “Goal Based Investing”