Say Yes to Retirement Plan

The retirement will come for everyone, sooner or later, by which time many people wonder what will happen to your income. Will they have enough to live with public pensions? The general opinion, both at the level of the street and that of the experts, is that within a few years the public retirement will not serve to maintain people: a complement of another type will be needed, another source of income that comes from savings private.

Deposits, investment funds, pension plans- What to choose?

It will always depend on us and our ability to save, the context and multiple factors. The important thing would be to start saving now, but there is no magic formula. We must know each other and know what we spend the money to start saving; we must also decide if we keep or invest, or if we do both (and in what proportion); we must determine if we open a pension plan, or if we do everything at once.

The retirement investment plan will be available once we retire, and never before (with some exceptions), so if it is well thought out, and we contribute with the certainty of not running out of liquidity throughout the year, and may also save or invest. To a certain extent, we will have a safe amount of money when we retire, that comes to complement the State pension.

The savings (simplify here savings for the substantial investment) we will have to calculate it, decide how much money we can separate from the total that we enter, once discounted the fixed expenses, the Continue reading

Retirement Plan or Pension Plan. Do You Know Which One Suits You Best?

Retirement plan and pension plan, two proposals that appear whenever we look for options to save for the future. We mention them often, however, are we clear about the differences between the two?

We explain it below, but we’ll start with one of the things they have in common: their function. Both the retirement plan and the pension plan are aimed at savings at the time of retirement. They are products with which we can allocate part of our income periodically to have an income once we have retired.

What is the difference between them?

The first difference is the possibility of recovering the money before the deadline. Although there may be different options, the retirement plan allows this option.

In the case of the best retirement plans, the contributions made over the years plus the interest generated during the term of the program are recovered at the time of retirement, not before. Fiscally, they also differ. The retirement plan does not give us tax advantages. Pension plans, on the other hand, do have benefits in IRPF.

A pension plan is a long-term investment product contracted with a double intention:

  • Grow our savings.
  • Complement the public pension when we retire.
  • With few exceptions, it is an investment that will last until retirement or at least ten years.

An investment fund is a product of greater liquidity, where the saver Continue reading

Reasons to Prefer Mutual Funds as Tax Saving Option

Here are some primary reasons why mutual funds are ideal tax saving option:

1) Diversification

Along with our risk tolerance, diversification is the most critical element in any investment. The virtue of mutual funds is that they allow us to diversify our savings in different instruments with a meager amount. We can expand in a “vertical” way: the same class of financial assets of several issuers or “horizontal”: different types of instruments. While we could do it by investing individually and separately, the amount we would need to obtain efficient diversification will be much more significant than with mutual funds.

In addition to the selection of suitable instruments, you need a lot of experience or the advice of an expert.

2) Variety: a mutual fund for every taste

There are several types and categories of mutual funds that differ mainly in the kind of instruments in which they invest, which is defined in their internal regulations.

In other words: we can find one or more mutual funds that adapt to our objectives, investment term and tolerance to risk.

Here the concept of “open architecture” is fundamental: in one place we can access the most significant quantity, and quality of Industry information which is easy to search, compare, analyze and invest.

3) Very reasonable costs

Mutual funds are not free, but this does not mean they are expensive. When we invest in top tax saving mutual funds, we delegate the administration of our savings to experts. As many people spend at the same time in each fund, we all pay for this advice, which we could not do individually if we did not invest a succulent amount.

On the other hand, the shares of the funds are grouped into Continue reading

Private Equity: Because Investors And Companies Like It

Investments of only 5,000 rupees for 20 years, and today your total fund – one crore rupees, on which no tax will be levied. Although this is not believed, some equity funds have done the last 20 Throughout the years, 20 percent have compounded returns over here, and for 20 years has had only 5,000 per month or a millionaire to those who invested a total of Rs 12 million.

There are various types of private equity transactions, depending on when the partnership is started with a company in need of resources. What remains constant is the search for new profits. A small company or a startup needs liquidity to give new life to its development, but receiving funding from banks is a slow and complicated process.

So then a private equity advisory firms comes into play, an institutional investor able to enter the risk capital of an unlisted company. Till a few years ago they were the prerogative of great magnates, who had to pay a very high share to access this instrument, but things have changed. In the last few years, many funds have been listed on the stock exchange all over the world.

A collaboration that suits everyone

The bond that takes shape with a private equity operation lasts for a limited period: from a minimum of 5 to a maximum of 30 years, even if we are generally around 10-12 years old. It is convenient for everyone: the company obtains money and quickly, and also, it can also request support from the fund’s administrators for advice. In turn, the fund can give confidence to a company because it is convinced by its business plan and its margins of development, which can ensure better returns than traditional investments.

The various types of private equity

Depending on when a private equity fund decides to enter the capital of a company there are different definitions and strategies. If the secret equity operation is launched during the initial phase of a company’s Continue reading

Plan The Future and Marriage of Your Kids Right Now

To give a better future to your children, saving and investment is a necessary option. As a parent, you protect your children from any future financial difficulties. There are many options in the market for this, but due to the lack of awareness, most people cannot take advantage of them. There are deposit schemes such as FD, NSC, and PPF for investment. You can also choose a child insurance. This insurance works like a low investment plan.

Other deposit schemes including bank FD

Fixed Deposit (FD) is considered to be the safest and best investment plan for child future. This is because it gives you a guaranteed return and the market volatility does not affect it. The interest rates of each bank are different, and it depends on the timing of the FD. In general, people prefer to invest their funds in banks for FD, National Savings Certificate (NSC) and Public Provident Fund (PPF) for a set time, because there is no risk of any kind. The trend of people is also towards the NSC due to the fluctuations in the interest rates of banks. Also, options like mutual funds, unit-linked plans, and government bonds can be selected.

There is also a better option for children to invest in child insurance. The parent should understand that the child insurance plan is actually insurance-cum-investment products, which help to secure the future of the child in their absence. Child education investment plan helps in completing the growing education expenditure and other needs of the child can also be accomplished.

A child plan helps you as a financial assistant when your child is at various life levels, such as primary and higher education, starting a business or marriage. The Child Insurance Plan also works as an investment tool. By investing in a child plan at an early age, you get an excellent return and when you need you have enough cash in your hand. The sooner you start investing,

Account of expenses

According to statistics, when children are between 1-5 years of age, expenses are high. At the same time, when the child is 5 years old, his expenses start to slow down, but when the child is around 15 years old, the expenses begin to grow Continue reading

Mutual Funds: “A modern Alternative To Monetize Your Money”

Mutual funds are a modern way to monetize or increase our savings. Besides, it offers us the possibility of generating impressive returns for the investments that are made without sacrificing the availability of our money.

If you are thinking of opening a mutual fund, it is essential to keep one of the leading investment premises in mind: the higher the expected return, the higher the risk must be assumed.

You think that in no way would you be willing to put your money at risk. But calm, in the world of mutual funds, that risk we are talking about is not as reckless as it sounds.

People could understand risk as if it were something terrible.

Best return mutual funds being an investmenthave certain levels of volatility. That is, a return cannot be guaranteed stable or permanent. It is not like a term account in which the money is agreed upon at a specific rate for a particular time. So, what will performance depend on? Of the investments that are made. Now, depending on the type of funds you choose, different levels of risk are assumed, ranging from virtually zero risk funds to funds with high levels of risk.

What do we understand by risk profile?

The risk profile, mainly, is the appetite that the client has to achieve specific profitability. Now, to get that profitability you have to assume a certain level of risk. We can segment clients into three main groups: conservative, moderate and aggressive. Each of these profiles that I mentioned above encompasses different types of funds.

What characterizes each profile?

Conservatives, mainly, seek to invest in the short term. That is, up to a maximum of six months. And they find, above all things, to preserve their capital (not lose their money) to profitability according to their expectations and also providing them with availability.

Moderates have a medium-term investment horizon, which ranges from six months to three years. They are willing to assume certain levels of volatility to achieve higher profitability.

Aggressive customers, on the other hand, are those who seek to achieve higher returns. They have a long-term investment horizon, more significant than three years. They are willing to assume high levels of volatility to meet their expectation of profitability.

How to know which profile I fit?

To know your risk profile, you have to be able to answer two questions. The first is when you will need your money? And, the second, what level of volatility are you willing to assume to achieve specific profitability? In fact, we also provide a tool, which you can find on our website, it is a profiler that will help you find your risk profile.

Does each profile have any minimum amount of investment?

We have different minimum opening amounts depending on the type of fund, ranging from 500 soles to more. Now, we, for any investment in funds, suggest slightly more massive amounts. We speak between 5 thousand and 10 thousand soles, approximately. In this way, we can generate greater diversification, open several best performing mutual funds and create a portfolio. That increases the chances of making better returns.

Make The Future Plan For Your Child

The concept of raising children has undergone significant changes in the last few years. Economic, social and cultural factors are often responsible for this. Today women work. They are also involved in family decisions. Apart from this, the parents begin preparing for his future before the child is born. Due to small families, parents also focus on little nuances of child-rearing.

So that there is no problem left.

Every parent dreams of a better future for their children. But, just dreaming you cannot give a better future for your children. For this, it is essential to adopt the child marriage insurance plan and the balanced attitude towards investment.

In recent years, the cost of raising a child has increased significantly. For example, the cost of education has started to skyrocket. The current trend indicates that people are sending their children abroad for higher education, which is a significant expenditure. In the coming time, this cost is expected to increase further as a result of demand and inflation. Besides, our social texture also inspires saving for the education of the child.

Investment in Child Plans

If you want to ensure the future of your children, there are a number of child plans of different companies available in the market. However, before investing in a child plan, it is essential to understand some aspects. Before choosing a marriage insurance policy India, we must weigh the potential of our income and savings. Then, in the child plan you are taking, check that it is able to fulfill your child’s future needs. Will it be able to meet your child’s financial Continue reading

It’s Time To Make The Future Of Your Child Safer

A survey done in India shows that the urban people of India give the highest priority (75%) to their child’s education. Due to other priorities, they plan a lot about the future of children. And in order to get the benefit of financial investment, they always make plans during the early years of the child (3-8 years).

Everyone works hard for the future of their children and invests the savings money somewhere for their studies and marriage. Investment market also throws up the selection of words like investment for child education or Children Plan, in the name of investment and insurance products to redeem this opportunity. The question is, what would be the right way to invest money in a mutual fund or an insurance policy for a happy future of the children? If you have such questions in your mind, then we are giving you this answer today.

The difference between the mutual fund and insurance

Life Insurance is the main component of the best mutual fund for child education. The primary purpose of such schemes is to pay the sum insured for the future needs of the children after the death of the insured. Under the policy, this rule is that if the child is not an adult, the amount received from the insurance is spent by the policyholder for the benefit of the children made by the nominee. In Child Plan Insurance, insurance is of mother or father; children are nominees. Upon completion of the term of insurance, the policyholder gets the amount as per the plan.

Take a look at mutual fund schemes; there are more than a dozen schemes available in the market, which are for the children. These are helpful in collecting the money Continue reading

How to Choose The Right Investment Plan For Your Child?

Apart from this, on the two issues that the Indian patents look the most, it involves the marriage of children and setting up an enterprise for them in future. This survey shows that 81 percent of the children who are saving for the future of children are concerned with studies. Also, about 47 percent of parents are also worried about the rising cost of higher education. Because of this, there is rapidly rising inflation. Indian parents believe that for the education of children there is a need to make the right plans from the beginning.

Given the current round, no parent can guarantee that they will always be with them to meet their children’s financial needs. As a parent, you cannot even ensure that you will take full care of your children’s financial needs, whether you live or not. However, life insurance guarantees to some extent. Of course, in the event of any unevenness, the life insurance policy provides financial security to your family. Plus, you get savings in a more extended period. According to the survey, one in every two parents assumes that insurance is essential to complete the education of children and 13% of these parents have best investment plan for child education.

It seems that the rate of increase in the expenditure of studies can be faster than the inflation rate, which will further strengthen the value of the currency. For these reasons, most parents are concerned about the expenses of their children’s education. Let’s understand this with an example. At present, about Rs 93.6 lakh is spent on medical studies abroad (degree course). It is expected that in the next 20 years this expenditure will be increased to Rs 2.48 crores. Likewise, 20 years from now, to get an MBA degree abroad you will need around Rs 1.27 crores, which currently costs around Rs 48 lakhs.

It is imperative to understand what you will need after a set time. The reason for Continue reading

15 GOLD TIPS FOR YOUR REAL ESTATE INVESTMENTS

The month of making balance sheets, looking back and analyzing everything we have done. Also, the month to propose new challenges and assume new goals for next year. This also includes making an assessment of our finances, an acute observation of their behavior during the last months and asking us a question: what do we want to achieve in the future?

If the answer is to invest in a project with a guarantee of short-term final profitability, we suggest you to find the real estate advisors in India who carries out comprehensive management and a personalized follow-up of your case. But, above all, we recommend you keep in mind these 15 golden tips for your investments.

Bad times will also teach you. In fact, more than a threat are a business opportunity to stop along the way and analyze the route to follow once the storm passes.

Expand the look. Because focusing on the potential that your investment can have in the long term will help you understand profitability as something continuous and stable.

Avoid debts- According to Buffett, “in reality, you do not need to ask so much. If you’re smart, you’re going to make a lot of money without borrowing. “And he goes even further and points out, “if it’s about interests, which are the ones that generate your investments.” When he talks about this point, he usually refers to credit cards. What do you think is his advice? Although it Continue reading