21 Thumb Rules for Successful Financial Planning - FinVise India


Rule 1: 30 % of your income must be used for monthly living expenses.

Rule 2: 30% of your income must be used for Liabilities repayments if any.

Rule 3: 30% of your income must be SAVED and  INVESTED for your future LIVING.

Rule 4: 10% of your income must be spared for entertainments, vacations

Rule 5: 6 months expenses must be available for an emergency fund(should be invested in LIQUID FUND, FIXED DEPOSIT Etc)

Rule 6: Home loan must be registered and apply on both husband and wife name. (Both can get benefits on Home loan Tax benefits)

Rule 7: Buying the second house for investment is not advisable ( Survey reports - it will fetch you only around 3% return)

Rule 8: After 45 years of age, not supposed to enter into any BIG LIABILITIES(Higher education of children and wedding of children will happen around 45 to 50 only, so plan now for the same.)

Rule 9: Have a joint account @ Bank savings account.

Rule 10: Property must be registered on both Husband and wife name. (As per legal act – after husband first legal heir is wife, after wife it will go to children only)

Rule 11: Regular check on Nominations at all financial instruments, if not nominated, do it now.

Rule 12: Only in the insurance policy, Claims payable to Nominee. In other financial instruments, the legal heirs' certificate is must get back the settlement.

Rule 13: Must have Term Insurance to financially secure the future of your dependents. Conventional Insurance products can serve as Debt oriented investments and provide assured returns in the present falling interest regime with Tax benefits.

Rule 14: Don’t take any financial investment decisions EMOTIONALLY,  and also Avoid last-minute tax-saving investment decisions, plan well in advance.

Rule 15: MEDICLAIM is must (in spite of Group mediclaim coverage given at office) (After retirement there is no mediclaim coverage, after 50-55 years of age, it's very tough and costly to enter into mediclaim)

Rule 16: For your jewelry LOCKER, Only one lakh is payable by the bank, if theft or fire happens at the bank. Provided insurance done.

Rule 17: Like the same way Government guaranteed only one lakh for your FD also. (Fixed deposits with Banks up to Rs. 1 lakh only are backed by deposit insurance)

Rule 18: Must know all Tax implications. You cannot avoid paying taxes. But you can minimize by way of tax planning and investments.

Rule 19: All financial documents must be kept safely and keep family members informed of the same.

Rule 20: Financial investments must be followed through a personal financial advisor.

Rule 21: Review your portfolio every six months.


For more details on Child's Education Planning, Mutual Funds, Financial Planning & Personal Finance contact us at : 
Phone No. 9582250638
Email Id: contact@finviseindia.com
Visit our website: www.finviseindia.com
Location: National Capital Region

Comments

Post a Comment

Popular posts from this blog

"Top 5 takeaways from BUDGET 2019" by FinVise India

Image
Finance Minister Nirmala Sitharaman presented her first Union Budget and also the first of the Narendra Modi 2.0 government. Here are 5 key takeaways from Budget 2019: 1) Towards a $5 trillion economy Finance Minister Nirmala Sitharaman opened her speech with a target of making India a 5-trillion-dollar economy. She said that the goal was “imminently achievable" in the next few years. She said India took 50 years to become a $1 trillion economy. The Indian economy was at $1.85 trillion five years back, she added. "We have now reached the $2.7-trillion-mark and would become a $3 trillion economy in the current year," she said. 2) PAN card, Aadhaar interchangeable for filing income tax returns (ITR) Finance Minister Nirmala Sitharaman announced the decision to make PAN and Aadhaar cards interchangeable soon. PAN and Aadhaar have been made interchangeable, allowing those who do not have PAN to file income tax returns (ITR). This means that taxpayers will need either a
Read more

Why Invest in India?........India – Land of Unlimited Opportunities

Image
Why Invest in India??........ India – Land of unlimited opportunities # Reason 01 One of the world's fastest-growing economies India too remains one of the fastest-growing economies in the world. Source: International Monetary Fund FDI inflows increased by 37% since the launch of Make in India initiative. Source:  Department for Promotion of Industry and Internal Trade, Government of India Leading investors ranked India as the most attractive market. Source:  Ernst & Young Emerging Markets Center # Reason 02 The largest youth population in the world India to have the world’s largest youth population by 2020. Source:  United Nations Population Fund India to be the largest supplier of university graduates in the world by 2020. Source:  British Council India has the third-largest group of scientists and technicians in the world. Source:  All India Management Association & The Boston Consulting Group # Reason 03 Huge domestic market Risin
Read more

Having an emergency fund can ease financial, emotional pressure.....by FinVise India

Image
**Source: MINT Vidya, an old client, called me at 9 pm once. I found it a bit strange because I do not receive calls from clients so late, but I took the call. She told me her husband, Venkat, who is a heart patient, had to undergo bypass surgery immediately. He was denied health insurance by many companies because of his ailment. In the couple's last review two weeks before, they were asked to keep six to eight months' expenses in a Flexi bank fixed deposit (FD) for any emergency. Unfortunately, that didn't happen. Vidya had stopped working, and to meet daily expenses, they had to stop their systematic investment plans (SIPs) too. Their next option was to redeem the investments they had accumulated to fund their son's higher education. However, the money would take five working days to reach her bank account and the payment to the hospital had to be made immediately. So, she had to borrow money from her brother for five days. In another case, Bharati, a single
Read more