Posts in category "financial-planning" - page 10
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SEBI Modifies Multi-cap Fund Classification
What happens when a regulator tries to over regulate? This happens.
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Real Estate Investment vs Equity Investment
While you know my aversion to real estate investment in India, I don't discourage anyone from investing in it. If you don't mind the corruption related to property deals, you might make more than simply investing in equity and debt mutual funds. But before you decide which way to go, make some informed decisions. In this post I will try to simplify some calculations which can help you guide in the right direction. I will also mention some risks involved in each of those asset classes.
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Risks Of Wrong Financial Planning
It is now more than 2 years since I officially retired. But unofficially I have retired in Jan 2018. I had accumulated the required retirement corpus by Dec 2017 and I could retire at the beginning of 2018. But for reasons best described in one of my earliest posts, I decided to delay my retirement date by 6 months. The way I decided when I was ready to quit was based on the 4% rule. Since it's been only 2.5 years, I can't say for sure if the 4% rule is working or not. We will have to wait and see at least 10 years really. But ideally you will have to wait until I am dead to see if the corpus really lasted that long.
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How To Plan Your Financial Independence
Several people have routinely asked me whether I planned for this or that before deciding to retire early. Well I planned the way that works for me under my circumstances. There is no one size fits all and no one comprehensive definite solution. None the less, since so many people have this question about how to go about planning for financial independence, I thought I should write a post about it.
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How NOT To Invest in Stocks
Since I started this blog, a few people have been asking me if I will give stock tips. Others asked if I had invested in stocks and that is how I made enough money to retire. So I thought I should clarify a few things to my readers through this post. First, I don't give stock tips because I don't know how stock markets work and more importantly I don't know how to value a company. I have always wanted to learn how to value a businesses, but never got around to doing it. Next, I had invested only once in one stock and that is all my experience in stock investment.
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My Corpus Reached All Time High And I am Worried
Just recently, my corpus has reached an all time high. I thought we are in the middle of a world wide pandemic. How come the markets don't seem to care? Agreed that I don't understand markets, but still, this is completely unreasonable. Various indices and stocks in India, as well as in the US, are hitting all time highs. But the economy is hurting. Where am I going wrong in my understanding? Well, there is nothing new happening really. Mr. Market has always been manic-depressive and probably will continue to be that way forever.
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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 as an example, but you should be able to do the same for any other fund. If you'd rather watch a video instead of reading this post, scroll to the bottom.
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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 this a good investment? If you rather watch a video instead of reading then scroll to the bottom of the post.
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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.
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Sensex and Nifty Up More Than 35%
I wrote a post less than three months ago that Sensex and Nifty have fallen more than 30%. It is only fair that I should write a post when the indices have gone up. This time, they have gone up by more than 35%! The unfortunate thing is that I have no idea why. But hopefully your investments are up and probably in the green zone. Of course neither indices (thankfully) have not reached their historic highs.
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