personal finance Archives – Page 7 of 10

Life Insurance Term Plan: 5 practical buying tips

January 4, 2016 by Vipin Khandelwal

Over the last couple of weeks, I have had several queries on life insurance. Thankfully, the readers were aware that term plan is the right insurance product to buy.

Yet, when it comes to actually buying the term plan product and decide which policy to go for, some questions do remain. This post is going to deal with those questions and attempt to give perspectives, which you can use to find your own answers.

The questions around buying life insurance term plan

The most common questions are

Should one buy term plan online or offline?
Should one buy it from the insurer with the best claim settlement ratio?
Should one break the required insurance cover into multiple policies or buy just one policy?
Should one select regular premium or lower premium payment period option?
Should one buy it from LIC or a private insurer?

I will try and use the learnings from the interactions with my clients, readers as well as my own experience, to offer various perspectives. I would be happy to read your thoughts and feedback in the comments too.

Let’s go.

XIRR: How to calculate returns on your portfolio?

January 1, 2017November 23, 2015 by Vipin Khandelwal

It was a lazy Sunday morning. While I was sitting on the window ledge, sipping my morning cuppa tea, the door bell rang. I took the last sip and opened the door.

“Good Morning”, I saw Shekhar standing out wearing a broad smile.

“Good Morning Shekhar, long time!” I was seeing him after several days though he lived just next doors. We were good friends.

“Yes Vipin. Long time! And as always I have come to trouble you a bit.”

“Sure, tell me.”

“You know, I have invested in mutual funds. It’s been a few years now. But I have never been able to understand what is my return on these investments.

This time I happened to open my account statement. And that also doesn’t seem to show it. Can you tell me what’s the best way to calculate it?”

“Sure, why not?”

Retirement Planning for Me – What does it take?

February 22, 2017November 18, 2015 by Vipin Khandelwal

As a part of my client engagement for financial planning and investment advisory, one of the key goals that is discussed and planned for is retirement.

Typically, retirement has been the most undervalued goal. It never seems like a priority.

Recently, in my latest engagement, I was working on calculating the retirement needs of my client – let’s name him Deepak.

Deepak is in his early 40s, in a well-paying job, expected to do well in the future too. He wants to ensure that he can provide enough for his daughter’s education and his own retirement.

“When do you want to retire”, I ask.

“At 55 age”, was the immediate reply.

“OK, let’s work this out.”

As I worked out the numbers, I saw something terrible. With the current situation, Deepak cannot retire by 55. In fact, he might have to well carry on working till over 65 years of age.

I am working with Deepak to find out the best solution to help him reach his goals. With some adjustments to his portfolio and investment habits, it would be achievable.

So, that was Deepak.

But wait, don’t I need a retirement plan for me?

When should you not buy a house?

September 5, 2018November 13, 2015 by Vipin Khandelwal

There is some fancy about owning a house. For ages, a house has been considered the ‘best investment’. A house of your own happens to be a dream for most people.

There’s something emotional about it too. Your parents, your relatives, everyone recommends to buy a house.

“Khud ka ek ghar to hona hi chahiye” (You should have one home of your own).

And then you see those full page advertisements giving away fancy deals, offers that promise nothing less than heaven. The banks too are willing to give you loans at ‘easy EMIs‘.

Combine all this, you are willing to stretch yourself to any extent to get your dream home.

Knock, knock!

“Can we take a break please and look at some important issues?”

Pension Plans: Wolf in sheep’s clothing?

November 2, 2015 by Vipin Khandelwal

I started investing in HDFC Pension Champion from Year 2010 for sum of Rs 1,50,000 per annum. I have completed 5 years of investment and I see the returns as of today is @ 8.02%. I stopped investing from this financial year, as the returns are less than the normal FD rates. I am thinking to invest in Mutual funds instead of ULIP.

I understand from your previous articles that, if I wish to surrender the policy no taxes to be paid and no reversals of 80C deductions as the invested period was 5 years.

The above note is what a reader (I will call him Rajesh) sent to me recently.

I believe that you or someone you know also owns a pension plan. We have a few lessons to learn here. First, some basics.

What are pension plans and how do they work? – The Sheep’s clothing

Why did I become a fee-only financial planner?

November 2, 2015October 31, 2015 by Vipin Khandelwal

I am feeling happy today and I want to share the reason with you. I just received my certificate of becoming a ‘Registered Investment Adviser‘ from Securities and Exchange Board of India (SEBI).

Vipin Khandelwal - SEBI Registered Investment Adviser

It had been a work in progress for long. Finally, it’s here. It allows me to practice as an Investment Adviser or Financial Planner.

If you are wondering as to what’s so special about having a SEBI registration, FYI, without a registration, SEBI does not allow anyone to represent himself/herself as a financial planner, advisor, investment advisor or any with other name and offering any such services.

Actually SEBI brought out SEBI ‘Investment Advisers’ Regulations 2013, under which this registration is mandatory for anyone who wants to practice as one of the afore mentioned titles.

Let me take you through a quick journey of how does one get registered as an Investment Adviser with SEBI.