How would you invest if you suddenly got one crore? That is a nice thought is it not? In this weeks Q & A, we consider what should a sudden crorepati do, along with other questions. Perhaps you may have seen it already, this is my article in the Economic Times: Mutual fund advisers earning commission from AMCs may not give you the best advice. Thanks to Dr. Narendra Nathan for the opportunity. Readers may be aware that I had earlier written in ET about: Why investing is not only about equity.
Each week, I try and answer generic questions from readers. Here is this week’s edition. You can use the form below to ask your question. The tougher the question, the more I learn and hopefully more the benefit for readers. This week we consider questions on the PE of a mutual fund, health insurance for parents, renting forever and more.
Sanjay: I came across your website and got a lot to learn. I would classify me as an informed investor. I am travelling next week so bought your book on Amazon so that i can read it in my spare time. Faced a tough question so thought of asking you. My senior citizen parents had a New India insurance policy of 1.5L cover each at a total premium of Rs. 11000. In addition to this my employer has a family floater of 5L, my wife’s employer has a family floater of 6L – both of these cover my parents. Also my mom is a retired bank employee so her bank’s retiree organisation has a group mediclaim of 3L floater (for both parents) for which they pay a premium of Rs. 15000 I understand that an individual mediclaim is required for parents in case i change my job, blah blah blah…, hence had kept their personal mediclaim active. However New India sent a letter saying they are closing their Mediclaim 2007 policy and it won’t be renewed. They are giving an option to migrate to their current Mediclaim policy at existing rates. Now I doubt all the 3 group mediclaims would terminate parallel. Does it make sense to buy a costly personal individual mediclaim for my parents ? Even if they make a claim, it will always go to one of our group mediclaims . So i don’t see them using their personal mediclaim. Senior citizen mediclaims from private insurers charge 25000 for a 2L senior citizen floater, which I feel is too high and if invested for 3-4 years would create a 2L corpus to be used instead of the personal mediclaim cover. Could you please send the link to the article where you answer my question?
Each week I try to answer generic questions on personal finance from readers. In this weeks edition, I discuss reducing tax outgo from mutual funds, cost of fee-only planning and mutual fund portfolio reviewing. You can use the form below to enter your question. Announcement: Gamechanger paperback is still available at a 25% discount for Rs. 149 only! Grab it or gift it to a young earner
S Kumaresan Thanks for the retirement planner sheet. I wish I had known this when I was in forties! It would be better and more illuminating if the retirement planner is split into to separate computations: (1) Under the stated assumptions, how much corpus one should have at the time of retirement (2) How much to invest to raise the corpus arrived at by (1).
Each week I try and answer generic questions from readers. Here is this weeks edition. You can use the form below to ask your question. First a big thank you to all your support and testimonials in support of my nomination to the Indiblogger 2017 award. Each time I feel worthless and depressed, I must remember to go here and cheer up 🙂 Thank you.
Second, with all this talk about reorganising mutual fund schemes, I am not sure it makes sense for me to publish this months PlumbLine list. So will wait for the dust to settle.
Each week, I try and answer generic questions from readers. Here is this weeks edition. You can use the form below to ask your question.
Announcement: As part of Diwali sales, my first book: You can be Rich Too with Goal-Based Investing is available for a 21% discount (rs. 316) at Amazon and at a discount of 37% (Rs. 251) at Flipkart. You can also get my second book Gamechanger for Rs. 199 (Kindle Rs. 100) at Amazon