Investors looking for a predictable and steady return should definitely invest in bonds. As an investor, if you're saving for a comfortable retirement or your children's future, bonds are a steady way of achieving these financial objectives.
A bond is a financial Instrument issued by a company when you lend a sum of money to the company for a specified period of time. In return, the company pays you a certain rate of interest, which is disbursed in the form of regular fixed payouts. While similar to company fixed deposits, bonds are transferable and can be secured.
The important thing with bonds is to choose the company that you are investing in, wisely. Here are some factors to keep in mind when investing in bonds:
Reputation & Rating: Invest in a company with a good reputation and a good credit rating (given by industry-recognized rating agencies like CRISIL, ICRA)
Diversification: If you are investing in more than one bond, invest in different companies operating in different industries.
Saleability: If a bond is listed, you may be able to sell in the market for a higher price. If not, your money will remain invested until the bond matures.
When it’s often deemed an issue that will affect us only in the distant future, it is easy to relegate the topic to the ‘backburner’ and spend our energies coping with our all-too-often frenetic working conditions, our families and our busy social lives.
Yet, providing for retirement is a major consideration and one we all need to take a honest look at, because it affects not only ourselves, but our families too. Deciding when we can afford to take a step back, yet maintain a particular lifestyle, requires careful pension planning.
All of us are living longer than our forefathers. It's absolutely essential to have enough money during our old age. Due to increase in the cost of health care, you need more money for the long term than in the short term. When you are young you will have lesser income and lesser savings. When you reach middle age, you will have higher income and higher savings. As you grow older, you will have perhaps no income and only your savings saved during your earning period, will come to your rescue.
Life insurance like pensions and provident fund lock up your savings like in a bank vault and prevent you from withdrawing for your short term needs. A retirement plan helps you set aside money in your prime years when you are generating income and enjoy a healthy lump sum or a steady income in your retirement years.
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Why do we need to plan for our child's future? All of us have many dreams to fulfill. These dreams become more precious if they are for our loved ones. Especially if they are for our children. We as parents always want to give our children the best, particularly where education is concerned. However, with the increasing cost of higher education, we need to be prepared and assured that when the time comes; our child's dreams become a reality!
Most of these goals have a price attached and unless you plan your finances carefully, you may not be able to provide the required economic support to your child when you need it the most. For example, with the increasing education cost, if you are not financially prepared, your child may miss an opportunity of a lifetime.
Today, a 2-year management course at an premier management institute will cost you nearly Rs. 3,00,000 At an assumed 6% rate of inflation per annum, 20 years later, you would need almost Rs. 9,07,680 to finance your child's MBA degree.
Your financial needs like educating children, providing for their wedding expenses and keeping money aside after your retirement requires substantial money. These needs in a way are your financial liabilities. Against these financial liabilities, you need to steadily save and accumulate assets.
When your liabilities are long term, you need to invest in long term assets too. If you do otherwise, your assets will mature much earlier than your need and you may lose the rhythm of long term compounded savings that give you sizeable money. Long term investments also reduce volatility and enhances risk adjusted returns.
Life insurance like pensions and provident fund locks up your savings like in a bank vault and prevent you from withdrawing for your short term needs. Of course, you need money for short and medium terms also. For those purposes, you need to keep some balance in your bank deposits and some in medium term investments like mutual funds for a balanced life style.
As an expatriate or an international investor, the world of investments, funds and portfolios can be complicated. Deciding both how to invest and what to invest in are certainly challenges in today’s economic environment. However, it is important to cut through the jargon and understand the intricacies of managing your money in order to meet investment objectives.
Whether you are a high net worth individual or just starting out on the road to investing, securing the right advice and placing your hard-earned money in the best possible hands for the highest returns, is key. Inversion d advisor can translate the jargon and simplify the intricacies for you.
The world is looking at India as an investment destination. Be a part of the Indian growth story even while you are away. Invest in India with Inversion D' Advisor, among the leading advisory company that offers customized investment solutions and client-centric advice and services.
Whether you are a non-resident Indian (NRI) or an international investor (FPI), We have the experience and expertise to help you with your Indian market investment. We understand that NRIs and FPIs from across the globe have additional aspects when it comes to investing in India. The India asset allocation, portfolio investment scheme, tax treatment and repatriation are just some of the additional factors that we look into on your behalf.
Tax planning is the art of arranging your affairs in ways to avoid excessive taxes. By employing effective tax planning strategies, you can have more money to save and invest for your future..
While the income tax rules are now more complicated than ever, the benefits of good tax planning are arguably more valuable than ever before. Of course, you should not change your financial behavior solely to avoid taxes. Truly effective tax planning strategies are those that permit you to do what you want while reducing tax bills along the way.
There are many other ways to commit expensive tax blunders. Like selling appreciated securities too soon when hanging on for just a little longer would have resulted in lower-taxed long-term capital gains instead of higher-taxed short-term gains; taking retirement account withdrawals before age 59½ and getting hit with the 10% premature withdrawal penalty tax; or failing to arrange for payments to an ex-spouse to qualify as deductible alimony; the list goes on and on.
The cure is to plan transactions with taxes in mind and avoid making impulsive moves. Seeking professional tax advice before pulling the trigger on significant transactions is usually money well spent