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Old 18th October 2012, 18:22   #361
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While we are discussing instruments, does anyone have suggestions for really good financial planners they've had a chance to work with? I'd prefer a fee based consultation so that they aren't incentivized to sell me an insurance/financial product they are dealers for.
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Old 18th October 2012, 21:17   #362
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Default Re: Income Tax savings, Investments and Insurance

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Originally Posted by maverhick View Post
While we are discussing instruments, does anyone have suggestions for really good financial planners they've had a chance to work with? I'd prefer a fee based consultation so that they aren't incentivized to sell me an insurance/financial product they are dealers for.
Hi
My very limited experience(through other's stories)have not been encouraging.
Today with so much information available on the net you can do a fairly good job yourself.Remember the quote"In todays world to be ignorant is a choice"
Incidentally in case you do come across some name please do put it on this thread so others may benefit.
Regards
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Old 18th October 2012, 23:38   #363
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Default Re: Income Tax savings, Investments and Insurance

I was recently in the market scouting around for a health insurance plan for self and 3 dependents (Wife + 2 Kids) . Went to apnapaisa.com, submitted my requirements, and came to know that 3 insurers - TATA AIG, MAX BUPA & L&T Insurance would call me and give quotes.

I ended up taking MAX Bupa's Heartbeat plan -(Silver Version) - They offered me two plans - one for myself and my first child, and the other one for my wife and the 2nd child. Per plan, we would be having a fixed coverage of Rs 5 Lakhs Per Person, and a floater coverage of Rs 15 Lakhs, that works out to about Rs 25 Lakhs Coverage per plan, and Rs 50 Lakhs overall coverage for the family. The total annual premium worked out to be around Rs 21 K.
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Old 20th October 2012, 15:06   #364
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Originally Posted by S_U_N View Post
FundsIndia charge for ETF is around 0.4%.
However, for eGold, Commodity Guru Trading Services has quoted me much higher and I am looking at other brokers now.

1. Rs. 750 (one time charges).
2. Rs. 350 (AMC from second year only - first year free).

0.5% transaction fee.

Who is the broker in your case?
I persisted and got better rates from some other brokers.
One in Mumbai provided me rates as follows:
1. Initial Rs. 370
2. From second year Rs. 220

0.4 % brokerage.
e.g. 10 units, 3200 per unit, total Rs. 32000 worth of e-gold.
128 brokerage
15.78 STD
1.0 TOC
----------
144.78 Total Rs.
This is about 0.46% of the total value. I find this acceptable.
In addition, while converting to physical gold, I have to pay 1.1% toward (Octroi and VAT).
This is roughly Rs. 352 on gold value of Rs. 32000


Now the other broker has different structure:
1. Initial Rs. 225
2. From second year, Rs. 225
0.3-0.35% brokerage
But his estimate charge for Rs. 32000 worth of e-gold is
Rs. 500-Rs. 800
He cannot tell exactly at the moment, but will get back.
This comes to around 2-2.5% of the total value, which is too much.

I am sure he is not right, but still getting second opinion.

With the first broker, I get an online terminal and I can pay instantly via netbanking (they allow T+2 as well).

Last edited by S_U_N : 20th October 2012 at 15:09.
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Old 20th October 2012, 15:23   #365
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Hi friends, I need a little help to clear my confusion about term policy settlement ratios.

I had zeroed down on iTerm from Aegon Religare (AR) and was almost going to buy when I saw the dismal settlement ratio of AR -- about 55% -- in the IRDA annual report. Now on the other hand, AR claims on their website that they have settled 7 out of 8 claims from a base of 43k policy holders.

So I looked around on the Internet for some feedback on these contradictory figures. Aegon Religare has replied to a negative review on mouthshut.com saying this --

Quote:
We have been in business only since July 08. This means, almost all our claims are ‘early-stage’ claims. From a legal perspective, claims that are made within two years of the policy need to be fully investigated by us.
Now I want to know if something like this is true. Or should I just ditch it and go for other insurance providers like HDFC and ICICI who have the best settlement ratios only after LIC (LIC has one of the most expensive term policies).

Last edited by nileshch : 20th October 2012 at 15:52.
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Old 20th October 2012, 15:51   #366
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Default Re: Income Tax savings, Investments and Insurance

Hello guys, thank you for your reply. So it seems that i should invest max in PPF to get the best returns.

I am 25 YO, just started my career. I do not have any liabilities as of now. No EMI and no loans and may not require in the future as long as i don't invest in real estate.

So i plan to invest about 20k per month.

1. 8000/ Month in PPF ( 96k annually) as per your suggestions
2. 2000 + 2000 in SIP ( 48k annually)
3. Add around 4 - 5 000 per month in my equity account to buy shares.
4. All this leave me with around 3-4 k per month which i plan to save separately to get to an amount equal to 6 months of my monthly family expenses. It will take me about 2 years for this but i guess it is worth it.

Am i heading in the right direction?
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Old 20th October 2012, 16:55   #367
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Default Re: Income Tax savings, Investments and Insurance

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.... when I saw the dismal settlement ratio of AR -- about 55% -- in the IRDA annual report. Now on the other hand, AR claims on their website that they have settled 7 out of 8 claims from a base of 43k policy holders.
I was in a similar situation a few months ago.
What I read was that the 55% is for overall Aegon Religare and it covers all their plans.
But for iTerm the 7/8 figure is more relevant.
I have gone and taken insurance. Only time will tell if this was right or not.
I also took insurance from HDFC Life (basically, a 50-50 split).
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Old 20th October 2012, 23:25   #368
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Quote:
Originally Posted by S_U_N View Post
I was in a similar situation a few months ago.
What I read was that the 55% is for overall Aegon Religare and it covers all their plans.
But for iTerm the 7/8 figure is more relevant.
I have gone and taken insurance. Only time will tell if this was right or not.
I also took insurance from HDFC Life (basically, a 50-50 split).
Thanks for clarifying this. Even if the figures are for overall Aegon Religare, they do look scary. I too am thinking of a 50-50 or 75-25 split from two providers.
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Old 22nd October 2012, 13:28   #369
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Default Re: Income Tax savings, Investments and Insurance

Guys, what would be the best way to invest around 3 lakhs of liquid cash? Would it be a good idea to purchase a plot/land on loan by paying this as downpayment?
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Old 22nd October 2012, 15:27   #370
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Smile Re: Income Tax savings, Investments and Insurance

Quote:
Originally Posted by S_U_N View Post
I have gone and taken insurance. Only time will tell if this was right or not.
I also took insurance from HDFC Life (basically, a 50-50 split).
Quote:
Originally Posted by nileshch View Post
I too am thinking of a 50-50 or 75-25 split from two providers.
@Sun & Nileshch
Is this going to be smoother in case of any claims as you will have to provide two seperate sets of documents for claim reimbursement and if required have to chase both in case of any delays. Twice the headache. Instead wouldnt it be prefarbly to have one Insurer for your life cover?

Quote:
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Guys, what would be the best way to invest around 3 lakhs of liquid cash? Would it be a good idea to purchase a plot/land on loan by paying this as downpayment?
Depends upon how long you want to remain invested. If short term - Go for Liquid Funds, if long term invest in FD or in property.

I have a different query - Is the amount received on maturity or surrender of policies taxable?
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Old 22nd October 2012, 16:19   #371
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@Sun & Nileshch
Is this going to be smoother in case of any claims as you will have to provide two seperate sets of documents for claim reimbursement and if required have to chase both in case of any delays. Twice the headache. Instead wouldnt it be prefarbly to have one Insurer for your life cover?
?
Effort is more, but there is a better chance of getting one claim through instead of reliance on one insurance company only.


Further on the e-Gold from NSEL,
http://articles.economictimes.indiat...futures-market

I am not familiar with trading and exchanges, but what is the inherent risk of using these trading platforms. What happens if NSEL (which is a limited liability company) vanishes one fine morning after say 5-10 years down the line?

MCX has a similar product- i-Gold.
mcxindia.com/products/bullion/igold.htm
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Old 22nd October 2012, 16:20   #372
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Default Re: Income Tax savings, Investments and Insurance

Quote:
Originally Posted by ghodlur View Post
@Sun & Nileshch
Is this going to be smoother in case of any claims as you will have to provide two seperate sets of documents for claim reimbursement and if required have to chase both in case of any delays. Twice the headache. Instead wouldnt it be prefarbly to have one Insurer for your life cover?
@ghodlur, you are right in saying that it would be lesser hassle claiming from a single provider. But it is a good idea to spread the risk across two providers - if one of them were to fold up or if you are denied a claim from one of the providers. The flip side is two policies will have a higher combined premium.

Now only if LIC came up with an online term plan with a low premium. I'd go for that completely if and when they launch it!

Last edited by nileshch : 22nd October 2012 at 16:21.
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Old 26th October 2012, 08:42   #373
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Question Re: Income Tax savings, Investments and Insurance

Expert BHPians need your advise. I am in a strange predicament.

4 yrs back I had purchased a LIC Jeevan Saral Policy with an intention of accumulating corpus for my son's future education expenses (did a mistake of mixing investment with insurance, have to correct it now). Currently in 5th year of Policy with an annual premium of 72K (@6k per month) and the illustrations provided by the agent showed that I would earn around 36L upon maturity for a policy term of 20 yrs. The maturity amt arrived is a combined of Guarented additions and Loyalty additions which is expected in the range of 11-12%. The policy document though says that Loyalty additions (which is a major chunk) which is applicable after keeping the policy in force for atleast 10 yrs is subject to rates prevailing at the maturity year (2028 in this case) so I assume cant be 11/12% (who knows about the future).

I need to know:
1) Should I continue the policy or should I surrender it. If I surrender it I lose about 13K difference in thje premium paid till date and current maturity amt.
2) Even If I go ahead and surrender the policy, where should I invest the surrender value (around 3L) so that it still meets my original objective.
3) I did the comparisons with PPF and found PPF maturity (even after extension of 5 yrs) still comes to around 32L which is 4L lesser than LIC's return. Both the returns are tax free but LIC gives me easy liquidity + Insurance.

I havent used the policy premium for tax break purposes. Experts kindly advise. I am already in the process of surrendering LIC policies which I had earlier purchased for tax benefits. Presently the 1L tax exemption is already getting covered by PF & Home load principal amt.
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Old 4th November 2012, 22:53   #374
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Default Re: Income Tax savings, Investments and Insurance

This nasty TDS,
Is it deducted on the part of the interest that is above 10000. Or once the interest hits the 10000 mark, TDS is calculated on all of it ?

Also for Company Fixed Deposits, TDS is calculated after Rs 5000 (and not 10000)?

http://www.hdfcsec.com/Product-Servi...10931245186677

Last edited by alter.e.go : 4th November 2012 at 22:54. Reason: missed out something
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Old 6th November 2012, 00:22   #375
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Default Re: Income Tax savings, Investments and Insurance

Hi everybody
S U N
I want to invest for my daughter in e-silver as an investment for long term and not for trading.
Checked with IIFL(India Infoline ltd)
Their brokerage is .25 % when you buy and again when you sell
Account opening is rs 500 but if their brokerage is more than this amount then it is waived.
I have to open a depository a/c with them and they will keep the silver in it and in my daughter's name.The depositry is managed by a sister concern of NSDL(national securities depositry limited).I think the acronym is NCDL.In case I want to take physical delivery of silver I can do that.
Does anybody have any idea about e-silver as well as IIFL?
Regards
PS:They can trade in e-gold also but at the moment I am more bullish on silver.
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