Insurance Penetration in India is one of the least in the world. Through my blog, i try to create awareness about the importance of Insurance products. Insurance is not a compulsion but the necessity. One of the key reason for low penetration is the lack of knowledge about the importance of Insurance. It is one of my favorite topic in personal finance space. A good financial planning fails if the person is not insured. Therefore, experts recommend that Insurance should be an integral part of Financial Planning. Let me share an example of Person A. He died in an accident and his wife wrote to ... Read More
Click 2 Retire – An Online Pension Plan
Recently one of my friends asked my father "Which pension plan you opted for retirement?". My dad laughed and told him that "Govt provided Pension" was his only pension plan. I wish that today's generation could have enjoyed the same privilege. With an uncertain economy and job environment, there is an enormous pressure on the current generation to kick start financial planning ASAP. As an individual, my Financial Planning is much more sophisticated than the previous generation. During Good Old Days, My father's only worry was kid's education and marriage. These days besides kids education and ... Read More
5 Ques You Should Ask Your Financial Planner
Financial Planner can make or break your financial fortunes. A good Financial Planner is a lifeline for wealth creation. Unfortunately in the Indian context, USP of a Financial Planner is more of convenience factor rather financial planning. Recently, when i checked with one of my client Mr. Paresh from Mumbai, the services provided by his Financial Planner. He told me that financial products including mutual fund schemes are decided by his Financial Planner. He calls his Financial Planner whenever he would like to invest. The pickup boy collects the application form and cheque from him. He ... Read More
How to find out Right Home Loan Amount?
What is Right Home Loan Amount?. There is no right or wrong answer to this question. Both under borrowing and over borrowing are dangerous for financial health of an individual. We cannot ignore this question because it directly impacts your interest outflow. Three important pillars of Home Loan are Monthly EMI, Home Loan Tenure and Home Loan Amount. All 3 are interlinked to each other. I have not included Interest Rate as Interest Rate is not in control of a Borrower and is fixed. EMI, Tenure and Home Loan Amount are variable and optimum mix can be calculated. To influence any of these, ... Read More
How Many Savings Account Do I Need?
How Many Savings Account you should Hold is classic Personal Finance dilemma. It can be loosely correlated to Prisoner's dilemma between your mind and heart. There is no right or wrong answer to this question. In my opinion, i consider Savings Account as most important enabler to financial planning. It tells how good you are in financial planning. In my financial journey so far, i have observed 3 set of individuals. First set is those who have only 1 Savings Account. The rational is that they are not good in managing multiple Savings Account and end up paying penalty for non-maintenance of AQB ... Read More
Are you Financially Ready for Home Loan ?
Are you Financially Ready for Home Loan ? Unfortunalety no one pose this question to potential Home Loan Borrower. Infact, it is in the best interest of a borrower to ask himself whether i am financially ready for Home Loan or not. Financial Planning before availing Home Loan is imp task to avoid any future shocks. Home Loan is a huge financial committment (read: Financial Burden). If Home Loan financial readiness is not planned well in advance then it can lead into another financial mess. Based on my experience, i can say that biggest impact of Home Loan is on the family of a borrower. In ... Read More