A reader asks, “I would like to go abroad on holiday once in two years. How do I plan for this without affecting my other long-term investments?”. Our robo-advisor tool has a recurring financial goal calculator module, which you can use to plan for all such goals. This can also be used to plan annual…
Continue reading →This article compares my stock portfolio with an equivalent investment in a Nifty index fund and the Nifty 100 Low Volatility 30 TR index. We post this comparison each month. Before we begin, new readers need to appreciate the context of these investments. Update: We recently added a new tool to the freefincal investor circle…
Continue reading →We find out what percentage of our income we pay as tax in the new tax regime. Take, for example, a salaried tax-payer with an income of Rs. 11 Lakhs. After accounting for the standard deduction of Rs. 75,000, the net taxable income is Rs. 10.25 Lakhs. We will not consider any other deductions (like…
Continue reading →My Name is Sunil, age 50, achieved financial freedom at 45 & here is my story. An interesting point to note is that I had Average grades in Academics, Average Income, Worked for 25 yr in Manufacturing Companies, NO OVERSEAS Assignment, and NO ESOP & still did very well on Financial with DISCIPLINE, CONSISTENCY, &…
Continue reading →This is a debt mutual fund screener for portfolio selection, tracking, and learning. It also includes hybrid funds that invest in bonds. It will satisfy investors who wish to invest in money market funds, banking PSU funds, etc. The credit quality of the bonds in the portfolio and the bond maturity profile can be tracked….
Continue reading →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…
Continue reading →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…
Continue reading →If we consider any argument involving money managment, personal finance, investing, insurance, etc., there is something common among the two or more opposing ideas/sides. Each side thinks their choice is the best. Each side is pretty smug about their decisions. Unfortunately, this is rather immature, and we need to do better. Take, for example, the…
Continue reading →This ETF screener is based on tracking errors and tracking differences (ETF return minus index return). The screener will help users evaluate how efficiently an ETF has tracked its underlying benchmark. The tracking error is the ETF’s standard deviation minus index monthly return differences. The lower the tracking error, the more efficient the ETF is…
Continue reading →A reader wants to know how a term insurance payout should be invested for the family’s welfare upon his demise. As is well known, a term insurance plan only pays out on the insured’s death (usually a breadwinner). First, we (the insured) must ensure that the (bereaved) family typically does not need to dip into…
Continue reading →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…
Continue reading →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…
Continue reading →Whether you seek normal or early retirement, here are seven questions to ask once a year while reviewing your retirement portfolios. 1. What is the retirement corpus worth today? If you retire today, how many years can you be financially independent? If this number equals the years you expect to be alive from today, you…
Continue reading →Many young freefincal readers appear to be overconfident about their equity investments. This could spell trouble for their dreams. I hate to break it to you, but there is no proof that long-term equity investing will always give you “good returns”. All those arguments about the economy growing and the equity market reflecting those returns…
Continue reading →This index fund screener is based on tracking error and returns difference wrt benchmarks (aka tracking difference). The screener will help users evaluate how efficiently an index fund has tracked its underlying benchmark. It will also help to understand how tracking a midcap index or the Nifty 100, 500 differs from tracking the Sensex or…
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