A reader says, ” I am 35 years old, and I started my “equity” investments quite late (around 2021 when I was 33). Until then, debt instruments and real estate have been my primary investments for my retirement. So debt in my retirement portfolio has a major weightage at about 70%.” “I would like to…

A reader asks, ” What should I consider as the average inflation rate for the next 25 years? RBI indicates an average of 4% but in a band of 2% to 6%.” Assuming this is the inflation estimate before retirement, there are some considerations. 1. The inflation estimate is not set in stone. It is…

Many financial experts believe introducing the new tax regime (NTR) has destroyed the habit of saving. But does this make any sense? The NTR has no section 80C benefits like the old tax regime. So they believe that those who were forced to buy tax-saving products and forced to “save tax” (that is lower than…

A reader wishes to retire with an ongoing home loan EMI and asked us how to plan for this using the freefincal robo advisor tool — a discussion. First, some general considerations. Retiring in the middle of a home loan service may seem odd to many readers. However, it is quite common. For example, SBI…

Occasionally, we ask members of our YouTube community to post questions about investing and personal finance. Here are some of them with brief answers. Q: Sir, for a 30-year-old person who has never invested in MF, which MF is suitable for a lump sum amount for the long term? A: 50% of Sensex or Nifty…

This is an updated list of calculators available for members of the freefincal investor circle. This is an exclusive space for investors, advisors, fintech employees and students to access financial planning and insurance tools, mutual fund and stock analysis tools, coding strategies and Excel macros for data extraction. The resources can be used for investment…

We are happy to announce major updates to the freefincal robo advisor tool. Users can now use custom asset allocation schedules while planning for retirement and other financial goals. The other financial goal sheet has been modified to include a break-up of current investments. The robo tool is a one-time purchase (details below), and all…

A reader wants to know how real estate taxation works for resident individuals after the amendment to the Finance Bill 2024. Here are the details. I bought land at a price of 5L in 1995. The valuation report by the government registered and reputed valuer with all my value additions (fencing, water well, small house…

These are four assets that you should not add to your net worth! Over the years, many readers have vehemently disagreed with me on this, but I have always followed a sound thumb rule: if I cannot use it, or should not use it, cannot liquidate it at will, then it is not part of…

A reader says, “My equity allocation is 66%. My target allocation is 60%. But to rebalance, I must shift Rs. 48 Lakhs (approximately) from equity mutual funds to fixed-income instruments. The tax I must pay will be significant, and it bothers me. I invest almost Rs. 4L a month in my portfolio with almost 3L…

A reader says, “I am 36 and have a 4-year-old daughter, trying to save some money for her education, marriage and my retirement. In one of your podcasts, you mentioned that 50-50 allocation is enough to create a good corpus. I can invest 1 lakh per month based on my current financial situation. Do I…

Since Budget 2024 announced a higher LTCG tax on equity mutual funds and removed indexation benefits for old debt fund units, many readers have asked us if they could use the tier II account of NPS for tax-free rebalancing. Although this response is expected and unsurprising, it is still frustrating and disappointing. Investors are ready…

A subscriber to our YouTube channel asks, “I am 20 years old. I want to start investing. Which can I choose, Nifty Next 50 or Nifty Midcap 150 index fund?” For older people like me, it is lovely that you want to start investing so early (I appreciate that it is now quite common for…