Dealing with the aftermath of Covid wave 2 has been unsettling and depressing. The family which has lost a loved one suddenly needs to deal with a lot of chaos and confusion, not even allowing them to grieve in peace. This is primarily since in most households, one spouse takes the lead in handling finances and related matters. The other spouse naturally gets complacent that these matters are being taken care of and hence doesn’t even attempt to get a broad picture of the state of assets, liabilities etc.
While this experience has given a lot of action points and mistakes people should avoid, we will concentrate on liability, especially the home loan for the sake of clarity.
Employee Deposit Linked Insurance or EDLI is a mandatory insurance scheme for private sector employees who are enrolled into EPF. The quantum of insurance provided depends upon the salary (salary refers only to Basic and DA) drawn in the last 12 months before death. The insurance paid out is subject to a minimum of two point five Lakhs and maximum of seven lakhs.
Read more about EDLI in our article published in Money9 below and propagate this widely to help families in distress.
The past year has been uniformly difficult for most of us. However, for some people lower down the pecking order, things have been unimaginably bad. Most of us do help someone out financially, but usually this is a one-off case done without much thought.
My conversations on the topic of giving with most people always leads back to the same position, we are not there yet. When do you start giving? When do you acknowledge that you have enough for your needs? After all our wants keep expanding and the list is endless. If we wait to take care of all our wants, we are essentially guaranteeing we will never be able to give in our lifetime.
How do you plan for your financial well-being? Are the priorities the same for everyone or does it differ depending on your unique circumstances? In our experience over the years, we have noticed that a one-size-fits-all approach does not work when it comes to your finances.
When it comes to single women specially, their circumstances are different and to an extent unique, driven by not just their needs but also the prevailing laws, and therefore need to pay attention to the following.
Conventional wisdom has it that financial planning is the same irrespective of gender or marital status. I have interacted with a disproportionately high number of single women and beg to differ. The challenges that are faced by these women are vastly different.
|How then should they go about putting the pieces of their financial tapestry together?
When we discuss parents with most customers, they are prompt to let us know that their parents are sorted and are independent. Many believe that the situation will remain the same, and at worst one would need to increase the financial support to ensure the parents are not cutting corners and are comfortable.
What we have noticed over the years is something different. Many of them have lived life independently despite having a healthy and happy relationship with their parents. They do not envisage the need to become the primary caregivers to ageing, and many a times, sick parents. Not only can this throw your retirement cash flows haywire if not adequately planned for, it can also impact your planned lifestyle in retirement.
As we look forward to ringing in a new year, we are very hopeful for a better tomorrow. Any thoughts about 2020 brings a lot of bitterness and negative emotions. There are a lot of jokes doing the rounds which say one should not count this year to one’s age since it was mostly on a standstill.
While all of this is justifiably so, was it a complete washout? As a popular quote goes, “never let a crisis go waste”. I have quite a few positive takeaways for the year that has gone by, and I share a few of them with you.
Read our latest article, published on Moneycontrol.
The much-awaited festive season comes to an end and it has managed to rekindle hope and bring a lot of joy despite the restraints this year. Diwali has always been the most exciting time of the year for me and preparations for the festival start much in advance every year.
The customary “Diwali cleaning” is something I usually delegate to the willing and efficient staff and am usually pleased with the result of a superficially extra-clean house for a few weeks. This year, I decided to do a lot of the customary cleaning myself and I was surprised to take away some financial lessons from this exercise.
Read our latest article, published on Moneycontrol.
Have you ever wondered, when you are planning for your future, why certain assets evoke so much loyalty and attachment? Come to think of it, you may have invested in it dispassionately in pursuit of good returns but somewhere along the way it has acquired a persona of its own.
Real estate and gold are two such assets which have a huge emotional connect. Gold is understandable, as in our culture, if you are selling physical gold, people assume that you have hit really hard times and it is never easy to part with physical gold. Other forms of gold like Gold ETFs etc. luckily are easier to deal with.
But what about real estate? I cannot think of too many people putting their life savings into a financial asset and staying the course despite hiccups and abysmal returns. Why then is real estate treated differently?
Read our latest article, published on Moneycontrol
Building a good diversified portfolio is a journey, not a one-time action. It is not a straight-line process either, and many a times, involves taking a step or two back as well, while the overall direction is forward.
As planners, this is something we do periodically, in order to exit assets, which we feel are not well-poised for the future and move to investments which are more aligned towards the goals and expectations. While one would think that conversations for making such changes in portfolios would be easy, many a times, they are not.
Here are a few pointers for you to ponder on, so that your portfolio review exercise ends up cutting your weeds and nurturing your flowers.
Read our latest article, published on Moneycontrol, to help you build a portfolio that resembles a bunch of roses and not a bush of thorns.