Disha a financial wisdom [compatibility mode]
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Disha a financial wisdom [compatibility mode]

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The Basic rules in Financial planning which you can use to empower you Financially.

The Basic rules in Financial planning which you can use to empower you Financially.

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    Disha a financial wisdom [compatibility mode] Disha a financial wisdom [compatibility mode] Document Transcript

    • 12/07/2011 Disha A way to Financial wisdom…….. Disha• Tax Planning :First comes in mind ………Normally starts in November.Confusion on selection of Instrument.The situation is Panic.Mission tax saving. 1
    • 12/07/2011 Disha• Tax Planning :Can a tax saving tool also work asa Strategic Financial planning tool ?Answer : Yes. Disha• Tax Planning :Can help you in Making yourFinancial foundation strong.There are two main Purpose of FinancialPlanning1. Protection of existing Asset &2. Preparing for Future expenses. 2
    • 12/07/2011 Disha• Tax Planning :Protection of Existing asset :Insurance : Financial liability can be covered by Lifeinsurance. tax saving u/s 80C.Accidental & Disability insurance is must.tax saving u/s 80C.Medical insurance for your family & parents is must.tax saving u/s 80D.Insurance is only a protection tool not an investment tool . Disha• Tax Planning :The Tax saving instrument can be aligned verywell for your long term goals like retirement. 3
    • 12/07/2011 Disha• Tax Planning :If you invest Rs. 8000 pm in Long term asset for 30 years & if the rate of interest is 14% pa How much you will have after 30 years ?Total investment : 28,80,000. & Returns will be : sssss …….. 4,44,56,445. This is power of compounding. ELSS can do this for you with tax saving u/s 80C. Disha• Tax Saving :• How much I have to save this year ?Salary – PF – Existing insurance premium –Home loan Principle , Other tax savings u/s 80c =Total investment for tax planning. 4
    • 12/07/2011 Disha• Expenses :This is the thing which can defeat you onFinancial management front.Keep a closer track.Don’t let only emotions to take your financialdecisions, involve Brain also in to it. Disha• Expenses :• How much should my expenses ?It should not be more than your 30 % of salary.• What if it is more?Track your expenses month by month find outwhere the hole is & block it. 5
    • 12/07/2011 Disha• Loans :• Take loan wisely :• Rate of interest & allied charges are the key decision making factor.• You can negotiate the rates. Disha• Loans :Loan Rs. 30,00,000/- taken for 20 years.Rate of int. 11% , EMI : 30966/-Total int. paid : 44,31,765/-If you can negotiate by 1%.Then EMI : 28951/-Total int. Paid :39,48,155/- & invested difference of Rs. 2015 will give you 26,21,850/- invested @ 14% 6
    • 12/07/2011 Disha `• Loans :EMI of the loan should not be more than 45% of your salary.What is your calculation says for you ?If it is more by 10% - Salary increase may offset.If it is more than that it may be alarming situation make a plan to bring it down. Disha• Credit Card :IT is a “Fine” instrument in both waysIf you use it in efficient way is it good for you & ifnot then you have to pay“Fine” for it. 7
    • 12/07/2011 Disha• Taking investment decision• Which instrument is good for me ?• Should I invest where my friend had invested ?• Should I go for Higher returns or Safety ?• How much to invest ?• When to invest ? Disha• Taking investment decision Let me ask you few questions !• Can you travel without destination in mind ?• Can you travel without knowing time when to reach ?• Can you travel without thinking of your budget ? 8
    • 12/07/2011 Disha• Taking investment decision•No ? Why ?• Why these three things are important ? Disha• Taking investment decision• Then why you let your money to travel without knowing destination, Time available & Budget ?• Why you select Vehicle first for your Money ? & still expect that it should deliver what you want without knowing ? 9
    • 12/07/2011 Disha• Taking investment decision• Your financial goal should be clear before selecting an investment vehicle .• Setting goal will increase probability to reach the goal . Disha• Taking investment decision• Your financial goal , The time available & your investment capacity will guide you to select right kind of investment Vehicle• Will help you in setting realistic targets for you & immediate corrective actions to be taken. 10
    • 12/07/2011 Disha• Taking investment decision• Divide the goals on the basis of duration to goalShort term. : < 3 years.Mid term. : 3 to 5 years.Long term. : > 5 years.Eg. Retirtement . Disha• Taking investment decision• Duration of goal will tell you the asset class of choice.• This will guide you to set a proper allocation of your available funds & Future investment.• Asset allocation is important in taking investment decisions. 11
    • 12/07/2011 Disha• Taking investment decision• The market is flooded with investment solutions no one is bad or good for YOU, It is good or bad for YOUR financial goals. Disha• Taking investment decision• Be aware of the people who gives you a Guarantee , in non guaranteed market.• Capital guarantee• NAV guarantee• Returns guarantee etc….. 12
    • 12/07/2011 Disha• Stick to basic rules of investing• Set goal for investment.• Start early.• Increase investment in proportion to salary.• Invest regularly.• Select right kind of asset class.• Monitor your investment regularly. Disha• Financial Planning pyramid . Wealth creation Aspirations Planning Essential goal investment planning Investment reserve Self & Family Financial Protection 13
    • 12/07/2011 Disha• If you feel We can do this for you. DishaJoin the movement towards financial wisdom. Ashish Ramesh Bhave Cell : 08793107044 arbfinancials@gmail.com 14
    • 12/07/2011 DishaRespect your hard earned Money & make it work for you. 15