personal finance Archives – Page 8 of 10

Your Ultimate Money & Investing Checklist

October 28, 2015 by Vipin Khandelwal

Lately I have been receiving several questions on “where do I invest xyz amount?”. Typically, the sender wants to know the funds for starting an SIP or making a lump sum investment in mutual funds.

The issue is that this approach is half-baked. There is an attempt to jump straight to investments not understanding that there are prior steps to be completed before addressing the investment question.

Typically this results in random acts of investments (buying this and that) without knowing whether something is really a fit. Such investments can hold back your investment portfolio from delivering the right outcomes. Buying traditional insurance policies and choosing dividend option in an equity mutual fund are examples of such nonsense.

As far as money and investments are concerned, one needs to take a step by step approach. Personally, I would like to see the initial steps marked complete before the investment question is raised.

One tool that can be of great help to you is a checklist.

Do you want to talk about this?

October 14, 2015 by Vipin Khandelwal

Over the past few weeks, I have been working to understand the experience in buying various financial products – from a simple savings bank account to a mutual fund, insurance, ULIP, post office schemes, real estate and stocks.

I have had some experiences by myself. I have heard from my friends, family and colleagues too.

Some have had harrowing experiences, almost like an ordeal. Most experiences though were a mixed bag – different for different products.

But today I want to listen to your voice.

What has been your experience? The good, the bad and the ugly, all of it.

And there is a purpose behind it.

We got to make financial decisions better and products simpler, faster, smoother and convenient. Your answers will lead to understanding to build the change that we all want.

Surrender Value Taxation – Must know insurance facts

January 19, 2019September 22, 2015 by Vipin Khandelwal

I am increasingly convinced that insurance (specially the investment variety) is a super complex product. There are so many ifs and buts attached to the product. It could have been otherwise so simple to understand and buy.

With the current product structure, it is just not possible for a layperson to understand and evaluate the product and make an informed decision. And on top of it, there are tax laws.

Well, I guess there is no point complaining. We will have to learn to navigate through the jungle.

Recently, I received the following query from a reader. It is about surrender value taxation of a life insurance policy.

1 Deceptively Simple Rule to save more

September 16, 2015 by Vipin Khandelwal

What is the most popular advice that you receive about money?

My vote is on Spend less, Save more!

It is one advice that my parents always told me. After all, “money does not grow on trees“.

It was drilled down to a point that whenever I spent money on a new phone or that coffee in the Star Cafe, a little guilt feeling would raise its head.

How do you spend less?

I am so afraid to start a discussion on this topic. The suggestions that I have received range from the funny to the ridiculous.

Insurance: All that is wrong with it and you!

September 15, 2015 by Vipin Khandelwal

I was aware that there was a lot of mis-selling happening with insurance products. I had heard horror stories in the media. I had seen my investor clients being made targets. At one time, an agent even tried to sell to me something that I really didn’t need.

For clarity, mis-selling means giving you a product that is not fit for your needs. For example, a ULIP (with a high degree of exposure to equities) is sold to a retired person who is looking for regular monthly income.

So, I knew about mis-selling but I had no idea to what extent this mis-selling was taking place, until I read this.

Do you know these 5 smart tips for using credit cards?

September 5, 2015August 31, 2015 by Vipin Khandelwal

Recently, a friend called me. She sounded a little upset.

For the very first time, she had missed paying up her last credit card bill. This was very unusual given that she is very particular about paying her bills on time. But such things do happen once in a while.

Her question – “Vipin, I have received the current credit card statement. It has a late payment fee as well as an interest charge. What do I do now?”

“Well, don’t worry!” I responded.

This is not the only case related to use of credit cards. I have come across several others – most as first hand experiences.