Each week I try and answer generic questions from readers. The archives of such posts can be found here. You can use the form in each post to ask your question. I shall take them up in the coming weekend.
Don’t be fooled by those who stand to profit from your investments! SIP is NOT systematic investing! Starting a mutual fund SIP and continuing it through market ups and down has nothing to do with systematic investing. Buying mutual fund units on the same of day of each month is automation. It has nothing to do with “discipline” like sales guys, investment portals (“direct”/”regular”) and product manufacturers would have us believe. Automation simply means do the job repeatedly using machines or technology. Most people automate the task of buying mutual fund units without having a “system” of purchase and management.read more
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?read more
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).read more
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.read more