Budget 2015: Tax-Free Infrastructure Bonds

So tax-free infrastructure bonds for infra projects will be issued.  Assuming they would be similar in nature (payouts will be tax-free) to the ones issued earlier, look before you leap.

For those far away from retirement: Why would you want to invest in a product that offers no compounding?

If I have access to a lump sum, I would be better off investing in a productive asset like equity.

What if I invest in a tax-free bond and invest the tax-free payouts in equity? That is like trying to rub your nose with your tongue, when your hands are free?  Anyway, if you are interested in this, check this out:

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Budget 2015: Sukanya Samriddhi Account – Do Not Invest

So the Sukanya Samriddhi Account is now EEE. Investments, interest and maturity are tax-free like PFF. Here is why it means nothing and why I will never invest in it if I have a daughter (I don’t).

1) You can withdraw only 50% at the age of 18. My imaginary daughters education is more important to me that her marriage. So I would appreciate higher liquidity.   I also find this feature bizarre.

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Budget 2015: National Pension Scheme

I missed the live budget speech and spent the entire morning in the woods of IIT, Madras with my son creating ripples in a pond and searching for insects. When I checked the budget highlights I found nothing spectacular from a personal finance perspective (the only one I can understand). Since no bad news is good news, this is something to cheer about.

I can’t find anything about mutual funds. Perhaps there is some reference to them in the annexures of the official document.

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What is MDBSC*?

If you are in Facebook Group Asan Ideas for Wealth (AIFW), chances are you would have encountered the acronym MDBSC* many times. Newcomers wonder what it stands for and wonder why there is a  *.   At a time when every news channel, financial services portal and blogger with an eye on Google Adsense earnings are churning out article after article on budget expectations to exploit reader sentiment, I think it would be a good time to discuss about what the acronym really stands for.

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Illustration: Passive Income Generation

Suppose I have 70 lakhs with me and would like to generate an inflation-protected income for as long as possible, how and where should I invest?

The following is based on the Inflation-protected Income Simulatorand a thread at facebook group, Asan Ideas for Wealth (some inputs have been modified)

A more detailedhow to generate inflation-protected income from a lump sum can be consulted by those interested.

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