Financial Planning basic Rule - 2

Saving tax and making a strong foundation to your Financial planning is very possible we had seen 80C then just have a look at 80D.
This can help you to plug the possible hole in your Ship. Any premium paid against Medical insurance plan gets directly deducted from your income.
Rs.15000/- for premium paid for you ,your spouse & children & additional Rs. 20000/- pa if you are paying premium for your Dependent senior citizen parents.
Why you should have Medical Insurance ?
Many reasons :

1. You don't know when you will require it.
2. Because you are healthy, Fit & Fine today because if you are ill may be you are at higher risk and may be covered at very high price.
3. This will protect your hard earned money from flowing away from you if any emergency happens.
4. Most of the people don't know what is the cover their employer is giving them, weather it is sufficient or not.
5. If you have a family critical illness history you should have Critical illness cover as well before it hits you as well.
These policies should be considered as expenses and pl never think that you had taken it for getting benefit, you may not like it .
This will help you protecting your money getting ill or face casualties.
The insurance plan with tax saving feature in it will help you to build a strong Foundation to your next Journey.
Happy Tax saving.

Financial planning - Basic rule -1

Financial planning is all about the optimum utilization of the CashFlow. The first way to think about the optimization of the CashFlow is to save Tax.
Tax saving is very important, this is the only facility which salaried class is getting on their earnings, as well as this is the additional benefit for others, How ever most of the people are seen not taking care in Choosing proper tool to save tax.
In India you can save tax by the way of 80C which is up to Rs.100000/- pa & 80D which is maximum of Rs.35000/- pa.

Under 80C   there are many options available , But do we really think about this options to optimize our resources ?
Think Again ............................
Can it be used as a Financial Planning tool ?
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The answer is Yes !
The tax saving as well as Financial planning tool - 80C.
How ?
If you pay a life insurance premium you will get deduction. But hold I am not talking about any policy of life insurance , I am talking about Purest form of Insurance i.e. Term Insurance which can give a very strong foundation to your Financial plan i.e. Risk coverage . You can take very high amount of insurance with very less premium. Insurance is an Contingency asset which gets created immediately & then you pay for it.The remaining portion out of 100000/- can be invested in ELSS which is again a Tax saving instrument in which you can invest over a period of time to create Retirement corpus.
If you are 30 year old & going to retire at 58 you have 28 years of investment period  in this period you can make 336 contributions.
Just to give you an example a 30 year old individual can get 1cr. life cover as well as can accumulate more than 2cr as retirement fund by utilizing 100000/- per year for 28 years very easily.

Think about it

We will take 80D in next Post .

What to do in this volatile market ?

This is  the problem today every body asks me, but i am not a forecaster i am just trying to arrive at some assumptions which tales that these coming 5 years are going to very dramatic to the financial markets. The global scenarios are changing and searching for a right head to crown.
Majorly i believe that is going to be the Asian countries who are going to lead now.
I see that the center of Financial gravity is rolling towards eastern regions of world.
When to take a decision about the investments we have to take very thoughtful decisions. so i think again the goal based approach will come as a rescue .you have to define the time to goal & accordingly plan you strategies .If you have a long term goal this 5 years are of tremendous opportunity for you plan your investment in phased manner, if you have a short term goal then also there is a good opportunity of investments which are giving very attractive rate of return how ever play very safe in these kind of investment because there is a default risk involved in it.Return on investment as well as return of investment both are important.
Nothing to worry & keep away your self from Greed & Fear .