How To Design A Financial Retirement Plan? 5 Steps

Nowadays, not all people dedicate enough time to the design of a financial plan, which is necessary to achieve our personal and professional goals. Having a business plan will directly affect us in the future (not very far), so it is worth spending more time to design it, making the most appropriate investment decisions according to our investor profile.

In parallel, we can design a retirement investment plan, something necessary to cover our future needs (during retirement). The requirements of a retired person will be established according to the level of life that he wants to have finished the labor stage. The primary income would be the public pension provided by the State, but it would be advisable to have accumulated savings thanks to our financial plan.

To make a financial retirement plan, we will have to take into account various factors such as the economic and personal situation of each one.

Five variables that affect our financial plan

To know how to plan for retirement, we have to take into account different variables that affect it.

Time horizon until retirement: it is necessary to know this information since depending on it we will make a greater or lesser saving effort. This leads us to think that the sooner we start planning our retirement, the less energy will be created. In the same way, if we intend to advance our retirement, the saving effort will be greater, since we will live more years as retirees (and consequently we will have worked less time).

Inflation: this factor directly affects our money, since it reduces its value in the future. Therefore, the need arises to protect us from inflation, and for this, we must see that the Continue reading

Important Steps For The Education Of Children

As a parent, it is imperative that everyone wants to make their children a successful person. Better school, good classmate and better opportunities in life are needed to become successful people. Especially for the Indians, best investment for child education is everything. So, we always try to send our children to the best schools so that they can master their field. But for the better school, the pocket is lagged in the same way, and if you want to make this fantasy come true, then you have to understand the following issues.

  1. Are you preparing for indigenous or foreign education?

Answering this question can be a bit reluctant. Well, there are many quality schools in India. However, it is very much easy to get admission in US or UK schools than enroll in Indian schools. So you need to decide on education according to you.

 

Under these situation, you have to decide that you want to give your child global education. Or would you prefer to provide Indian education to your child to inculcate culture? At the same time, it has to be decided that there are good schools in India regarding discipline or abroad. You want to give your child under-graduate and post-graduate education elsewhere or just preference for post-graduate training abroad. After all, whatever decision you have to make, you have to raise money according to knowledge.

  1. Current school fee structure, which is estimated at the future inflation rate

If your child is still young, then get information about how much school fees are. But calculate the payments according to your child’s education according to the future inflation rate. It is often seen that there is great increase in prices for schools. A slight increase in annual fees is natural. To calculate Continue reading

Investing In A Child’s Education Is An Investment Without The Risk Of Depreciation

Every parent wants that they send their child to the best school and provide quality education. This is the primary goal of financial planning. Parents can compromise with their happiness for children to read and write in a good university. To complete the education expenses, they are ready to do the second job even after the appointment. Leave the holidays on the shelf.

Many times, they sell their land and complete their education by taking out a loan. Recently, HSBC Value carried out a survey. This shows that Indian parents spend an average of 3.62 lakh rupees for their children’s undergraduate and post-graduate studies. This study involved 505 parents and 100 students.

Indian parents spend an average of 3.62 lakh rupees on their child’s undergraduate and postgraduate studies. And this amount is increasing year by year.

 

Today one of the essential tasks for each member of the society is competitiveness in the labor market. To remain in demand, we have to work consistently. And it’s not so much in a large number of specialists in specific sectors, as in the dynamics of the demands of employers.

To get a prestigious job, a modern job seeker must have specialized education, unique skills, preferably a unique experience. Also in many areas, knowledge of at least one foreign language at the level of free communication is required. The foundations for such personal achievements are laid on the school bench.

Investment in education

Practice shows that investment for child education is the most profitable investment tool. The financial indicator here directly affects the increase in knowledge capital. The latter plays a significant role in the formation of the financial stability of a member of society. The speculation of parents in the education of children leads to an increase in the money capital of the latter.

That is, by investing in training, you give your children a financial instrument with prolonged action. You can use cash on a one-off basis (and, as is often the case, unsuccessful). The capital of knowledge will provide the child who has grown up with sources of fixed active and passive income Continue reading

Investment And Retirement In India

For several people, retirement means the end of earning; if you still work as a consultant, then you can make money. It is essential for a retired person to invest the remaining amount in such a way that he has to pay no taxes and earn regular income. A fixed income and investment in the market, the combination of these two is a challenge for a retired person. This challenge is to maintain this amount for a long time – you retire at the age of 58 or 60, and your maximum estimated age is 80 years.

Here are some best place to invest money for retirement for retirees who can help them in their monthly expenses-

 

Senior Citizen Savings Scheme (SCSS), as the name suggests, this scheme is for retirees or quick retirees. Any person who is over 60 years of age can buy SCSS from anywhere in the bank or post office. Those who retire early can also take SCSS if they purchase it within three months of getting the retirement fund. SCSS is for five years, which can be extended for three years after the completion of the scheme.

At present, the interest rate in SCSS is 8.6 per year, which is quarterly due and is fully taxed. These rates are set in every quarter, and they are associated with G-section rates with the spread of 100 basis points. Once these investments are made, these rates are fixed for the entire duration. SCSS currently provides the highest tax returns among all comparable fixed income tax products.

Maximum investment limit is 15 lakhs, and any person can open multiple accounts. Apart from this, the investment made in the SCSS is tax benefit under Section 80C, and you can also make a pre-departure withdrawal in this scheme.

POMIS is a five-year investment plan, in which maximum investment limit is nine lakhs under the joint ownership and 4.5 lakh under single ownership. Interest is deposited quarterly, and the present rate of interest is 7.8 percent per annum, which is paid every month. Investments made in POMIS do not come under any tax benefit, and attention is also subject to full tax.

Rather than going to the post office every month, you are directly connected to your savings account at the same post office. Apart from this, interest from any savings account can Continue reading

Investment Funds Provide An Escape From Tax Deductions

Do you want to invest your money? So you can, depending on your risk appetite, consider buying bonds or stocks. But you can also choose to put your savings in an investment fund. But by the way, what are these mutual funds exactly? And what are the different types of funds available to you? Here are a few pieces of advice to help you determine top mutual funds to invest in.

Investment funds: a big pot filled with money

You can compare an investment fund to a container in which a large number of investors are pooling their money. This money is then invested according to a strategy defined in advance. Depending on this strategy, investing in a fund will involve more or less risk.

 The different kinds of mutual funds

 

There are various types of investment funds. We have recorded for you below the most common types of investments. An agent can provide you with information on the best way to put your money in a fund.

  • Bonds: Bond funds invest in government and corporate bonds. Depending on the strategy defined, the fund will invest in bonds of various durations.
  • Equities: Equity funds invest in shares of different companies. The fund manager often uses a stock index with which he compares the performance of the fund. In the jargon of investment, we speak of “benchmark.”
  • The terms “mutual funds” and “equity funds” are often used interchangeably. But in reality, an equity fund is just one of many types of investment funds.
  • Cash: money market funds invest in cash and short-term securities (term deposits, treasury certificates, short-term bonds, etc.) Some funds invest in foreign currencies.
  • Real estate: Real estate funds invest in buildings or real estate certificates (financial instruments with real estate as the underlying value).
  • Pension savings funds: the e-pension savings fund is a type of investment fund.

Open and closed investment funds

Most mutual funds issue continuous units. We are talking about public funds. As an investor, you enter or exit whenever you want: you can (r) buy or sell at any time units of the best mutual funds to invest in for long term.

In the case of closed funds, the number of shares available (and thus the capital) is fixed. As a customer, you cannot invest in this type of fund at all times. When someone sells their share, someone else can repurchase it. The value of a share, therefore, depends on supply and demand.

Funds maturing or with capital protection

Some investment funds have a maturity. You, therefore, enter in principle for their entire duration. For some fixed-maturity investment funds, you can recover the full amount of the starting capital at maturity. We then speak of funds with capital protection.

Why invest your money in investment funds?

  • Placing your money in investment funds offers a variety of benefits:
  • With relatively small amounts, you spend in an attractive mix of stocks, bonds or other asset classes.
  • The management of an investment fund is ensured by experts who make a selection for you and who follow the situation closely.
  • Investing in a fund gives you entrance to a market often reserved for professionals or “major players,” and not for private investors.

Why It Is Important To Save And Invest?

Reserving a part of our money for the future and put it to work to obtain a return will be critical to our welfare.

All people have some goals, goals that we would like to achieve. For some the welfare of their family or a quiet retirement, for others the dream of living their old age in a villa by the sea; many will seek to give their children the best possible education and help them to get admission in the best universities; and for the more adventurous, make the dream trip around the world.

But all these plans and future wishes have one thing in common: to get them we need to reserve a part of the ordinary income, save money as a forecast in the best mutual funds to invest for future needs. And this is precisely the definition that the retirement plans give.

THINKING IN THE FUTURE

 

When we save, we are giving up now to enjoy our money later. We transfer current purchase decisions to the future. In families, the saving is remains of the family income from the money that we destine to the consumption and the payment of taxes. The higher our ability to save, the stronger our financial position will be.

Saving is the first step, essential, to look with serenity in the long term and aspire to achieve the objectives, but it may not be enough. And more, when the ‘price’ of our dreams usually increases with the passage of time.

THE TIME IN OUR FAVOR

Think about how much money it cost you 30 years ago to buy a property and what its price would be now. Or how much was a master’s degree at an American university 20 years ago and how much would you have to spend now. It is the dreaded inflation.

PUT THE MONEY TO WORK

The investment allows us to put in our favor the passage of time. It becomes the essential weapon to increase our heritage and our wealth.

There are many ways to invest and each with its characteristics, both potential future gain and risk to take on: equity, fixed income, real estate, risk capital, etc. When choosing where to put our money, we will have to be acutely aware of what they are and what returns we can expect. And the term is also crucial, the time that we have so that our investment can give results.

The bigger our time horizon, the more results our investment will give. Like a snowball that advances, if we achieve an excellent average annual return, our inheritance will increase every time. And each additional return will increase our wealth at a higher rate. As a sample, a fact: if for seven years we achieve an annualized return of 10%, the initial capital will have doubled.

Therefore, the sooner it is convenient to establish a mutual fund’s investment, periodically reserve a quantity of our income that we can allocate to the investment, to put our money to work to serve our goals.

CONCLUSION

To reach or not, our plans and those of our family will depend in large part on the savings capacity that we have and the profitability that we can obtain by investing this money. It is convenient to establish savings habits in the family so that we do not have to resort to over-indebtedness to undertake essential projects for ourselves or vital needs.

Strategic Consulting In The Field Of Real Estate

In the conditions of the modern market, an auspicious start of business and effective management of it is impossible without the involvement of competent specialists in real estate. Consulting services can include both marketing research and strategic consulting and, encompassing a massive layer of analysis and solutions, are the only tool that gives confidence in the correctness of the investments made, in the right choice of the direction of work.

And if the owners of large facilities have already come to understand the need for consulting services, then owners of small premises often do not yet see the benefits of contacting consulting companies. Although the existing problems cannot be solved on their own.

For example, in some situations, the owner of a small store is competent enough to approach the issue of passing through the point of sale, as soon as rotation of tenants stops and incomes increase. Independently to see ways of the decision of a problem the owner often cannot or undertakes incorrect steps which could be avoided, having addressed for consultation. It will not cost much, but the effect can be significant!

Consulting is a professional service by real estate investment consultants that is provided to corporate clients for business improvement. Consulting includes analysis and substantiation of the prospects for the development of a particular business. In the last few years, consulting has become popular in India. Consulting services are used in all spheres of activity.

Real Estate Scope

One of the most developing spheres in business is real estate. The possibility of obtaining a high profit from the property attracts a large number of investors to invest in this Continue reading

Venture Capital And Private Equity: What Are The Differences? Where To Apply?

Venture Capital is often mistaken for Private Equity. These are two types of investment funds in unlisted companies with the same resale objective to achieve added value. In this, Venture Capital can be understood as a branch of Private Equity.

Nevertheless, Venture Capital and Private Equity differ according to the type and size of companies in which they invest and the commercial equipment they use. We will exploretheir differences in more detail and the careers that these funds offer.

What career prospects in Private Equity and Venture Capital?

Recruitments

 

In Private Equity: Most private equity advisory firms recruit former business bankers usually after two to three years as an analyst. Most funds in Paris recruit trainees, but places are scarce. The number of junior positions in Private Equity is also low. Even as a trainee, many funds will require prior M & A experience.

Venture capital

In Venture Capital: If recruiters ask you for a solid foundation of technical knowledge, the interviews will focus more on your understanding of the fundraising and new technologies sector. The “fit,” personality and motivation issues are also of great importance. Relying on the size of the fund you are applying for, a merchant banking experience is not mandatory, and you will need to demonstrate your taste for entrepreneurship. Venture Capital funds bring together more diverse profiles that can come from finance, consulting or entrepreneurship.

Daily missions

In Private Equity: At Analyst level, you can expect a lot of financial modeling to determine whether your interest fund to invest in a given company. You will also Continue reading

Know These Three Pillars Of Retirement Planning, Get The Benefits

Savings are essential for retirement. But, it is often overlooked. Where some people ignore it by thinking that there is a lot of time in it. At the same time, some people are satisfied that some part of their salary is going to the Employees Provident Fund (EPF). However, dependency on EPF contributions is not correct just for retirement.

There are three essential columns of retirement financial planning in any country. Here are these:

  • First column: Public pension
  • Second column: Professional retirement
  • Third column: Private or personal allowance

Those who are funding for retirement, need to understand these three. How this will affect their retirement savings, it should also know.

First column – Public pension

 

The first column fulfills the need for social insurance. Hence it is called a public pension. It is mainly used to help the old and the poor. The government entirely runs such pension schemes.

This is an example of the Indira Gandhi Old Age Pension Scheme. With the help of this scheme, people of 60 years and over 80 years old are given monthly assistance of Rs. 200 and Rs. 500 respectively. They get the benefit of those who are passing below the poverty line.

The second column – Occupational Pension

It is for the second column salaried persons. In this case, the pension is arranged for employees working in government institutions or companies. In 2004, the government changed the pension system. The government has increased in the direction of defined contribution from defined benefit. This system is not applicable for defense services.

Under the new system, the employee must substantially contribute to the National Pension System (NPS). However, adding to NPS for private sector employees is optional. However, adding to the EPF is mandatory for them.

Third column – Private or personal pension

The third pillar is made from the savings which are used Continue reading

What Is The Difference Between A Mutual Fund And An Investment Fund?

A fund is an investment vehicle that brings together the assets of many investors, which is used to collectively buy different kinds of assets, such as bonds, stocks, currencies among others, depending on the risk you want to assume.

The funds provide a wide selection of investment opportunities and have teams with extensive experience that specialize in finding the best investment opportunities.

Now, within the types of funds there are mutual funds and investment funds, which have some differences that we explain below:

The best mutual funds to buy is a vehicle focused on natural persons, whose first characteristic is liquidity. That is, a person can request all their money invested when they want, and the payment of this cannot exceed ten days in a row. Independent of this normative term, most funds pay between 1 to 4 days, depending on the instruments in which it is invested.

 

The second characteristic of these vehicles are the tax benefits that the client can access, such as the VCT and the postponement of the payment of taxes until the rescue.

For its part, an investment fund is a vehicle focused on legal person (institutions), which owns lesser liquidity than a mutual fund. Within the investment funds we find two types of funds:

  • The redeemable, which by regulation must pay the total of the investment to each client in a period from 11 to 180 calendar days.
  • The non-redeemable, which may take a long time to pay a ransom for over 180 calendar days.

The second difference with mutual funds is the tax benefits that the client can access since in this case there is the possibility of not paying taxes, as long as the client sells his shares in the secondary market as an action, a transaction that does not constitute income. This type of instruments is more similar to action than to a mutual fund.

What differentiates a mutual fund from an investment fund? At first glance, both come into sight to be very similar forms of investment: both are investment alternatives that bring together the assets of different people, natural or legal, to invest in national and international public offering values.

But despite this, they differ in crucial points. That is why we will describe in general terms what a mutual fund is and what an investment fund, to end with a conclusion about the differences between a mutual fund and an investment fund.

Differences between mutual funds and investment funds: what is an investment fund?

The best performing mutual funds are an investment alternative consisting of an integrated by contributions from natural and legal persons (called participants or contributors) to invest in securities and real estate enabling Act Investment Funds.