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Old 16th July 2015, 06:45   #586
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Re: Income Tax savings, Investments and Insurance

Too long to explain but -

1. Buy only term life insurance plans - higher coverage for a lower premium. Dont ever mix insurance and investment by buying "highest NAV", "ULIP" etc "pay 50k a year and you'll get 50 crore in 20 years" stuff that insurance agents try to sell you. Those only maximize their commission, not your insurance.

2. Don't try to mix long term equitiy funds structured for tax benefits with investment.

Put your money in carefully chosen mutual funds, equity, some real estate (only a place that you would live in yourself, dont buy it "as an investment") etc according to whatever mix works best for you.


Quote:
Originally Posted by ameyawaghmare View Post
Thanks for all the words!
Any specific reason in your opinion why tax saver ELSS would not make for a good investment? My life insurance (with a private player) and a few donations help to cover up part of 80C every year but I need to plan up something for the coming year so as to avoid having any tax payable.

All my investments are towards direct investment in shares/stocks and 80C has never been a goal.

Tax saving ELSS is the only avenue that I can think of, would like to know more of its pitfalls.
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Old 16th July 2015, 19:18   #587
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Re: Income Tax savings, Investments and Insurance

Just a few minutes ago, I got a mailer from an agent of Tata AIG for something like a householder policy, but which surprisingly seems to cover everything from building to jewelry to electronics to elevator to paintings and sculptures, etc.

It covers jewelry in bank locker, jewelry in home safe and astonishingly provides worldwide cover against theft for jewelry worn on the body. For jewelry, it says "Valuation report is mandatory".

This got me thinking. For one, I was under the impression all along that the only means to value gold is by melting it down. At least that is what the folks at Tanishq said when I once inquired about their exchange offer. So how does Tata AIG do the valuation? Also are there independent valuers who value gold? Has anyone on Team-BHP taken insurance like this and is it really necessary to insure the contents of a bank locker?
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Old 16th July 2015, 20:23   #588
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Re: Income Tax savings, Investments and Insurance

It has happened in some cases that bank lockers have suffered from rust, termites, burglary etc. And while a bank guarantees your deposits they don't know or care and won't guarantee the contents of your locker
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Old 29th January 2016, 22:17   #589
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Re: Income Tax savings, Investments and Insurance

Hi guys, happen to come across this thread recently. Surprising to see no updates for 7 months. I have a SBI savings account with netbanking. I also have a PPF account(but at a different branch than savings account) .But I dont see a link in my netbanking to my PPF. Can I do something to link it, without visiting the branch?
Visiting SBI is like going to exhibition (Numaish in Hyderabadi) or Mela :-) So much crowd and I want to avoid a visit. Please help.
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Old 30th January 2016, 08:54   #590
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Re: Income Tax savings, Investments and Insurance

@manduvindupondu: You have to email your savings account branch to link the outstation PPF account to show up in netbanking. I take it that the PPF was created under the same CIF no.?

Email address should be printed on your passbook (it's usually sbi.abcde@sbi.co.in where abcde is the last 5 digits of the IFSC code)
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Old 1st February 2016, 01:02   #591
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Re: Income Tax savings, Investments and Insurance

Quote:
Originally Posted by hserus View Post
It has happened in some cases that bank lockers have suffered from rust, termites, burglary etc. And while a bank guarantees your deposits they don't know or care and won't guarantee the contents of your locker
Hserus
Hi.
Stumbled upon your post today.
Very true about the bank being indifferent to the contents of your safe deposit vault.
But I would like to mention a case in the consumer court where the judgement went against the bank and the litigant was awarded compensation for the loss of valuables. This happened some 8/10 years ago and there was no subsequent news in the press. But one thing is sure, winning a case is different from actually getting the money.
Regards
PS: I better tell my wife to the bank to check
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Old 1st February 2016, 09:09   #592
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Re: Income Tax savings, Investments and Insurance

Quote:
Originally Posted by faustus77 View Post
Hserus
Hi.
Stumbled upon your post today.
Very true about the bank being indifferent to the contents of your safe deposit vault.
But I would like to mention a case in the consumer court where the judgement went against the bank and the litigant was awarded compensation for the loss of valuables. This happened some 8/10 years ago and there was no subsequent news in the press. But one thing is sure, winning a case is different from actually getting the money.
Regards
PS: I better tell my wife to the bank to check

This may be slightly off topic but still relevant here.

Keeping gold in a bank locker may work out risky in case of any loss, as one has to produce the ownership documents / invoice for purchase of gold etc. Rather, a better option would be to take gold loan from a bank on the gold (so you don't have to worry on the safe custody of gold) and the money you get out of gold loan should be made FD in another bank which gives higher rate of interest. No doubt, the interest payable on gold loan would be higher than the interest earned on FD, but you are also saving on locker rent and also your gold is safe with the gold loan bank.
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Old 1st February 2016, 09:40   #593
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Re: Income Tax savings, Investments and Insurance

Quote:
Originally Posted by KK_HakunaMatata View Post
No doubt, the interest payable on gold loan would be higher than the interest earned on FD, but you are also saving on locker rent and also your gold is safe with the gold loan bank.
The average locker rent is around 1000 to 2000. Assuming gold loan rate is 4% more than FD interest.

So the interest payable different would cancel each other only if you are taking a loan of around Rs. 50,000.

If you take a loan of 10 Lakhs, you will be paying an additional interest of 40,000 Rs per year & saving on locker rent of Rs. 2000.

Also don't forget you have to pay tax on the FD interest.

So this would work only if you have like one small piece of jewelry you want to keep in the locker & instead chose to take a gold loan.
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Old 8th June 2016, 09:06   #594
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Re: Income Tax savings, Investments and Insurance

Quote:
Originally Posted by nowwhat? View Post
So how does Tata AIG do the valuation? Also are there independent valuers who value gold?
I am in the fray for a Home insurance basically to cover the contents of the house rather than the structure. The structure is already covered in the building insurance which is taken by the society. The trigger for the Home Insurance now is a small fire which happened in my house due to the melting of the extension board which I had used to power up the TV and STB plus additional points used for mobile charging. The extension board all of am sudden caught fire and melted. My wife in panic threw water on the electrical fire. But this set me thinking that I should buy a Home Insurance to avoid any such incidents particularly when I am out of station.

I am still looking for the correct Home Insurance provider, there are lots in the market but each one is complicated than others. The total cost for a home rebuild in case of fire with regards to contents in the worst case scenario works around to 20L which includes the furniture, home appliances, painting, wiring, sundry items. I am assuming here an electrical fire since this is most occured cause of fire in homes. However there are no Insurance providers who can provide that cover, if anyone is aware kindly let me know. The premiums for home insurance till date varies from 4K to 10K and these are online quotes. Do the Home Insurance provider also need to inspect/verify the Sum assured? Any pointers in regards to buying Home Insurance is very much appreciated.

Also info on handy portable fire extinguishers for home purposes is also welcome.
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Old 9th June 2016, 05:39   #595
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Long post alert!!! need help in planning

Need your advise in planning investments. Till now have been a vagabond travelling(or say partying) across cities/countries and barely looked at the saving aspect(used to think I have ample time for that, couldnt have been more wrong).
No regrets though, as I have had a blast these 9 years(job-life). Recently crossed 30 and will be hitched soon. So started to realize the value of savings(looking at marriage expenses & some of the friends my age who were far wiser).

My current stand :

1.Bought a house , hence have a home loan running. EMI = 25-26% of my monthly Take-home. I stay in the house so no further expenses on rent.
2. Have a small car(loan cleared) which is sparsely used(15k kms in 5 years) and will serve me good for another 3-4 years post marriage. Currently used the bike more as I was a bachelor.
3. A small LIC plan. 2% of take-home only.

Now where I need suggestion is:

1. Since 80C is covered with the LIC+PF+Home-Loan-Principle, what else do I have as an option for some further savings on tax? Infra bonds(any suggestions about which one is decent)?
2. Need to start some long term saving plan in range of 15-18 years(post that I intend to retire). What are the best possible schemes available lately with low risk? Am looking for returns only with this & pay-out should be done(to family) even if I am no more during maturity(is that known as endowment?).
3. Used to be a intra-day trader in my early job days(22-25 years of age) and had cashed-in heavily back then but post the Great recession lost touch with trade scene. Saw the bad side of market as well(a few friends lost heavily), hence don't have too much of a risk appetite anymore.
4. How much of the monthly salary should be saved as a thumb-rule? I know circumstances vary from person to person but on an average?

I know, ideally this realization should have happened long back but better late than never. Looking forward to your valuable suggestions.

Last edited by SoumenD : 9th June 2016 at 05:44. Reason: Proof-reading
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Old 9th June 2016, 08:22   #596
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Re: Long post alert!!! need help in planning

Quote:
Originally Posted by SoumenD View Post
1. Since 80C is covered with the LIC+PF+Home-Loan-Principle, what else do I have as an option for some further savings on tax? Infra bonds(any suggestions about which one is decent)?
2. Need to start some long term saving plan in range of 15-18 years(post that I intend to retire). What are the best possible schemes available lately with low risk? Am looking for returns only with this & pay-out should be done(to family) even if I am no more during maturity(is that known as endowment?).
3. Used to be a intra-day trader in my early job days(22-25 years of age) and had cashed-in heavily back then but post the Great recession lost touch with trade scene. Saw the bad side of market as well(a few friends lost heavily), hence don't have too much of a risk appetite anymore.
4. How much of the monthly salary should be saved as a thumb-rule? I know circumstances vary from person to person but on an average?
To answer your question serially:
1) Since the 80C options are exhausted, other tax saving options are Medical Insurance for self + parents. What LIC policy do you have? Is it a term policy? If not, then first then get a pure term policy. For you age, you can easily get a cover of 1cr for a premium <10K. This will ensure your family's need in your absence. Secondly never mix investment and Insurance. Get a health insurance for self + family. A family floater options would serve the purpose. Start now knowing that the health costs spiral every passing year.
2) Since you are beginning to invest, Your investment pattern should be Equity =100-your age, rest in Debt. Would suggest 4/5 star Mutual funds (check out valueresearchonline.com). Pick up Large cap equity funds and Balanced Equity funds and start an SIP.
3) Since you are averse now to stocks, stay away from it for now. You can try when you think your risks are covered.
4)As a thumb rule, 40% of your salary should go into regular investments, 20% should be your emergency back up. You can use the rest for your expenses.

If you can afford the services of a certified financial planner, you can their help.

Hope this helps. Investments is a learning curve, you may fail at the start but in the long run you will succeed.
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Old 16th October 2016, 23:39   #597
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Re: Income Tax savings, Investments and Insurance

Team, My dad, a retired-pensioner wants to invest in some short-term (read 5-7 years) for tax-saving purpose. Since he is 60+, he is not eligible to invest in most of the life-policies for himself and so, he wants to invest in my mom's name (she is ~58).

A acquaintance who is an adviser with Kotak suggested the "Kotak Assured Income Accelerator" plan which is an endowment insurance plan with guaranteed income every year during the payout period.

This plan looks good to me. However, since this is a life plan, I doubt if my mom would be eligible as she is a diabetic.

Is there any other good investment options for my dad?

P.S: Bank-FD is always an option. But, want to try out/learn options before finalizing on anything.

EDIT: He is not interested in any ULIP or other market-linked plans. He wants to invest only in such policies where guaranteed income/returns are available.


Thanks!

Last edited by callvvijay : 16th October 2016 at 23:42.
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Old 16th October 2016, 23:41   #598
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Re: Income Tax savings, Investments and Insurance

The only income acceleration that happens with that plan is to the commission levels of the insurance agent (god knows why they claim they are advisors any more than manthara was an advisor for Kaikeyi)

Never mix insurance and investment

There's a post office monthly income scheme that's not terribly complex and has decent returns for senior citizens that your dad could take a look at.
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Old 3rd January 2017, 10:23   #599
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Re: Income Tax savings, Investments and Insurance

A bit off topic :

Can we deposit a Post Office Savings account Cheque in either SBI or HDFC or any nationalized bank ?

Reason for asking is a few of my NSC are getting matured and need the funds. We dont want to carry the cash from Post office and deposit in the bank.

Not sure if RBI has provided the banking license to India Post for seamless banking transactions.

Appreciate your help
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Old 3rd January 2017, 10:43   #600
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Re: Income Tax savings, Investments and Insurance

For maturity of a NSC the post office will issue you a DD drawn on a scheduled bank. They will not give you cash.

You can take that DD and deposit it in your branch.

I am not sure if they have moved with the times and provide NEFT transfer to your bank account the way for example LIC does for matured policies these days. You can check at the concerned post office for the procedure.
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