ARE ULIPS THE BEST TAX-SAVING INVESTMENT OPTIONS?

Apart from spending habits, demonetisation has affected the available investment options as well. Banks, which are flushing with funds, now, have already started decreasing interest rates on fixed deposits and are expected to lower them further. Life insurance it seems is becoming a preferred option for investors. As per the latest IRDA report, the total first year premium in November 2016 jumped to more than Rs 16,000 crore as against Rs 7,500 crore in November 2015. Both single premium and regular premium figures have shown growth over this period.


Amidst all this, life insurance products such as unit linked insurance plan (Ulip) can be considered a more reliable wealth creation solution over the long term, keeping in mind the returns, protection and tax savings, all combined in one product. Amongst several investor friendly features, one of the unique propositions of Ulip is that it permits investing one’s premium in a mix of debt and equity funds in varying proportions, allowing inter-fund transfers through switches and all this with no tax liability. Ulip, as an investment option, stands out from all other market-linked investments, as the gains from even a debt fund in Ulip are tax-free in the hands of the investor.

Saving money aside
Smart tax planning is an integral part of sensible financial planning. The average investor enjoys numerous tax-saving options like PFs and PPFs, life insurance plans, ELSS investments, ULIPs and more. When comparing different instruments it is always advisable to choose an option that offers the combined benefits of wealth protection, value appreciation, strategic flexibility, and tax savings.

Traditional insurance plan
It offers life protection and tax benefits with very little scope for wealth creation. Mutual funds, on the other hand, offer good returns with zero life protection and restricted tax-saving opportunities. Conservative tax savings options like PFs are unlikely to generate inflation-proof real returns over the long run. ULIPs are a useful financial tool that can be used to bridge the gap between the various investment options along with the added advantage of significant tax savings.

For more information and queries, contact Moneymindz, the best free financial advice.





                                                                          



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Factors for a suitable Life-Insurance Plan


A term plan is the simplest, most affordable life insurance policy. In the event of the policyholder’s death, his/her family gets the sum assured (cover amount). Thus, term plans are protection plans that shield your dependents from the financial impact of your untimely demise during the policy tenure. If you have dependents or financial liabilities, then it is prudent to get life insurance and a term plan is the cheapest variety of life insurance policy available in the market. However choosing one from the plethora available in the market can be difficult.

How should you choose the right online term plan?

To simplify the decision for you, we have summarized the features of six online term plan products available in the market.

How do these features affect your choice?

Contrary to what your friends and family may have told you, premium is most unimportant factor to consider.


1. Customisable Coverage:

Only three of the above insurers offer flexible coverage options with riders for terminal illness, permanent disability, accidental death and critical illnesses. Online term plans offered some renowned banks offer some form of protection against critical illnesses. For instance, in the case of the famous private insurance companies cover four major critical illnesses as per their existence once in India in both males and females. In addition, the Women CI rider is a women-specific rider, which covers cancer of women-specific organs, pregnancy complications and birth of child with congenital defects. The smart covers 34 critical illnesses in various categories - Heart and Artery conditions, Major Organ ailments, Brain and Nervous system complications, and others.

However, some renowned insurance plan allows anytime attachment for the riders, which translates to the flexibility available with the policyholder to alter his rider coverage based on one's requirement.

2. Income Replacement Option

The reason these riders are so important is because of events such as Critical Illness (CI), which can be a double whammy for a family. Firstly, the cost of medical treatments for such conditions can be exorbitant, even if properly planned. Secondly, if one member of the family is out of action, then one source of income stemmed.

For more information and queries, contact Moneymindz, the best free online advisory service.

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Financial advice for people who are in twenties




A person’s twenty is the time to make a career, to experiment, to take risks, to pursue your dreams, to work hard, and to have fun. They are young, free, and careless, with few responsibilities. There is no point in managing money at this age. That is because twenties are also a significant transition period and it is surprising to know just how much change in the next decade, thanks to greater responsibilities in career as well as your personal life. It is important to inculcate these two financial habits during the foundation years of life and career.

1. Savings: 

Start by trying to maintain an amount equal to a month’s expenses in your account. Twenties may seem like an odd time to think about saving, but an early start indicates a faster growth of money. Set an agenda and identify goals- either long term or short term.

How much to save? Save 30-40% of monthly salary: The more money made, higher the expenses are likely to be. Lifestyle costs tend to go up with income. The key is to save smartly and spend wisely.

How to save – Do these to save as much as 40% of your income 

  • Avoid going to expensive eating joints. Leave fine dining for special occasions unless you like being in debt. Alternatives could include organizing a house party or cook at home. 
  • Stay with family at home. You can save on rent and utility bills, which is a major cost for most people in their 20s. This way, you can also help your family by paying utility bills, if not rent, and hence share responsibilities. 
  • Try making use of public transport facilities like metros or buses. Carpooling is a good option if you have access to it. 
  • Avoid buying things you do not need. For example, do not invest money in hobby classes you would not be able to attend. 

2. Investing:
  • Early in your working life, it is very important to make a few but smart, long-term investments. Construct your financial plan, identify your long-term and short-term goals, and choose appropriate investments to match your goals. Here are a few tips to get you started: 
  • Employee Provident Fund: One of the most effective ways to save, EPF mandates at least 12% of your basic salary and a matching contribution by your employer, hence making a subscriber to the EPF able to accumulate a decent amount by the time he retires. It is normally a mandatory deduction and thus automatic savings. 
  • Equity Mutual Funds: Among the best means to build a retirement fund, Equity Mutual Funds invest in the shares of companies and have many advantages, like expert management and some of the highest long-term returns. 

For more information, contact Moneymindz, the best free financial advisory service. 

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Financial Freedom: The app that brings everything closer


MoneyMindz.com India's First Free Online / On-call Financial Advisory

 
Moneymindz 

It has reached that scale of intensity where people who are devoid of financial literacy have the chance to revamp their knowledge just by getting in touch with us. We are providing free advisory services to people because those treacherous and nefarious agents around the country fool them.

Do you have any long-term financial goals to motivate you? Every morning you get out of your bed to reach out to your corporate cubicle. Since elementary school, we are trained to study hard and follow the same linear path until expiry. We spent majority of our lives working from dawn till dusk without any vision of managing own finances. How will you find time to organize your money for which you have sacrificed so many things?

Financial Freedom 

It has the facilities where all sorts of answers for queries will be given when asked in post to experts. Having a strong distaste on calculating loan, interest or EMI and other obligations as banks are sending messages every now and then about payments. The simple financial calculator will take you to a ride on roller coaster, as all amounts will come up while relaxing on your sofa. It is an eternal bless rather than eternal bliss where all reckoning are done easily. Are you still banging your head every time, especially at every end of the month about amount not being saved? Is it still difficult to find the best insurance policy or thinking about investing in mutual fund? Moneymindz has the best financialadvisors who will act as your superhero during dark times. Do not waste your money by munching food from outside, missing closed ones on a very special occasion and cannot even talk to them  - you will be getting the opportunity  - due to lack of data and phone balance or forgetting to refill gas for work pressure, all these be at your smart phones. Moneymindz has come up with a gift for us with all these options so that instead of missing we spent each and every of those special moments gloriously. Newly joined in a stock exchange company and still crawling to get the stock where your future contracts look shiny. 

Do not have any idea about where to invest and how to invest? Volatility of market prevails in our economy so Moneymindz’ Financial freedom has check market application for a quick overview on the current market.                  



(Or) Download Our MoneyMindz -Expert Seller


     
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Financial tips for women


Every young Indian woman who are employed has wide range of priorities. We work hard, we save and we like to enjoy a fair degree of financial independence. However, here is when we should pause and ponder about what it really means to be financially free.

Family Fund: 

A woman working in an I.T. Consultant saved up money from her very first job and when her mother was sick and required expensive treatment, she pitched in - to the surprise of her father who was so proud of her daughter. That in fact, is true independence, when someone else can depend on you, to get through his or her financial troubles. Be it your child, your ailing parent or your partner who lost his or her job to external factors.

What should be the solution:

 Ideal thing is to save 10-15% of your salary towards a ‘Family Fund’. Assuming you already save up for this cause, it would be a smart move to transfer your savings into a debt mutual fund, for better returns as well as security. Be there for your loved ones in many ways, because that is how you look after your family.

Dream Fund: 

I remember earlier about a friend, saving up for an expensive LV bag. Some called it an irrational thing to own but that is my dream indulgence and I can save for it, no matter what somebody else thinks. After you have taken care of yourself and your family, you can now afford to indulge a little. If you have saved a sufficient amount in the other two funds, you can now start saving up for your dreams. A trip you have been putting off for a while, luxury purchases you have been craving for, or even a hobby you thought was too trivial to pursue. Well, it is time to invest some time in you.

Try this easy method: 

The wittiest idea is to save at least 5% of your salary towards this. You could also allocate your annual bonus or any other windfall of money towards this dream fund. Depending on how big this dream is, you can choose equity mutual funds or debt mutual funds to convert this dream into reality.

Take a decision today to save towards these funds, and the rest will take care of itself.

For more information and queries, contact Moneymindz, the best free financial advisory service.

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Are your parents soon be retiring? Here are some tips:




Parents are generally not comfortable discussing their retirement plans with their children because, for them, it might mean admitting to their shortcomings or simply because they do not feel it is time to disclose their true financial worth. That is why you need to approach this subject with sensitivity and more importantly with practical plans in place.

1. Understand their expenses: 

Ask your parents what is their monthly expenditure and how do they intend to meet them, after retirement. Let us start with some basic questions like:

Where would your parents like to live after retiring? Are they willing to stay with you or in their respective homes? If the latter, how close are they towards owning the property?

Does it need any alterations, repairs? Is there money set aside for such things?

Would they need any monetary contributions from your end?

2. Plan for income streams: 

Start with the common questions:

Are they likely to receive any pension from their days of service, if yes, how much? How can they create alternate revenue streams, from their Fixed Deposits or other types of the corpus that they have created over the years? For example, if they have multiple smaller FDs, it might make sense to put them all in fewer and more manageable debt funds or FDs to take care of their monthly expenses.

3. Assess existing investments: 

Once you have figured out your parents’ monthly expenses, you can discuss options to meet these. You can also discuss their existing investments, and help them organize the investments to meet their expenses. If an insurance matures close to the time of their retirement, can you help them reinvest this sum, and where?

4. Pay off loans:

 If your parents wish to stay in their personal home, but have taken a loan for it, it is advisable that this loan, paid off before they retire. The same goes for any other loans. You can offer to help with these loans as well. Inquire about the amount that are yet to be repaid and the time remaining for the same.

For more information and queries, contact Moneymindz, the best free financial advisory service.






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Tips for investing money in travelling


 

Money is often a make or break consideration when it comes to travelling. Here are a few tips to make sure you get your money’s worth on your various journeys.

1. Start a Holiday fund

Start your travel planning by starting a holiday fund. Investing will make your money work for you while you work hard towards that holiday. For short-term goals such as these, a debt fund can be useful.

2. Follow your taste

Dynamic pricing is unavoidable when taking flights and the only way to beat it is by booking early. However, sometimes booking early is not an option as you miss the various offers that come up during off peak seasons. Today all airlines are active on social media; follow their accounts. They often have preview sales and offers for their newsletter members prior to a public announcement. 

3. Go off the beaten track 

Road travel is always a great hit, with the flexibility it provides to stop and explore as you travel. With your own vehicle, the only major cost tends to be fuel. Water is another great travel option and sea cruises are becoming quite popular and sometimes cheaper too.

4. Stay down to earth 

The best travel experiences are those, which happen when you let yourself immerse into the local culture, and staying with the locals is the best way to make that happen. If you were staying with your family, however, a better option would be to look up home stays on hotel aggregator websites. These could be less expensive than standard star hotels and still give you a more immersive experience. However, check reviews before booking.

5. Volunteer your time

Many destinations have volunteering vacations where travellers can work in the destinations for any period and contribute to the local community. These are budget vacations where the travellers can exchange expertise for food and even stay.

6. Locals know their food best

Many travellers tend to order their comfort food even at locations where it is nowhere near the local food, like ordering Punjabi food at a restaurant in Chennai. Just because of its listing, the menu does not mean it is good. Always ask the waiter for local delicacies, they give you a flavour of the cuisine as well as are cheaper. Use restaurant rating apps curated by locals, they will let you find those hidden gems with the best gastronomic experiences.

For more information, contact Moneymindz, the best free 





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