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The trouble with fixing the current cost of a child’s education

The most important input while planning for a financial goal is the current cost of the future expenditure. When the goal is several years away, the current cost is a crude estimate.  For retirement, we can assume present lifestyle barring child’s education expenses and liabilities. For a Ferrari, we can enter the current cost. For a…

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Claim settlement ratio does not matter if your life insurance policy is at least 3-years old!

Claim settlement ratio does not matter anymore from 2015 if your life insurance policy is at least 3-years old because IRDA has amended the section 45 of insurance act  such that any life insurance policy which is at least 3-years old cannot be denied claim  “on the ground of misrepresentation or suppression of a material…

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Do not buy Sovereign gold bonds If you don’t know when to exit!

Here is why one should not buy the sovereign gold bonds which are on sale from Since Nov. 5th 2015, despite  the sovereign guarantee and the 2.75% interest rate. From today (5th Nov. 2015), Sovereign gold bonds  will be available for subscription at an issue price of Rs. 2,684 per gram.  Subscribers can buy bonds which…

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Using Piotroski Score for Stock Analysis: Download a free spreadsheet

The  automated stock analysis Excel sheet (version 8)  now calculates thePiotroski Score for the last 9 financial years for Indian stocks. In January 2002, Prof. Joseph Piotroski wrote a paper titled, Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers which detailed a method of buying stocks based on 9 balance sheet…

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Do not choose the moneyback feature of ICICI Balanced Advantage Fund!

ICIC Amc launched a new feature called ‘moneyback’ in its ICICI Balanced Advantage fund. Here is why retirees or young investors should not choose the moneyback feature of ICICI Balanced Advantage fund. The moneyback feature is a terribly misleading term for a Systematic Withdrawal Plan or a SWP (check out a Step-up SWP Calculator). A SWP is the…

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How to make online contributions to NPS Tier I and Tier II accounts

Here is how all NPS subscribers, including state and central govt. subscribers can make online contributions to NPS. This is post is meant for existing individual, corporate and government subscribers and is not a recommendation to invest in NPS. If you have an existing account with valid PRAN no (permanent retirement account number), you can, Go…

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Financial Goal Planner with Flexible Asset Allocation

Asset allocation or the percentage allocation to different asset classes in a portfolio is probably the key aspect of investing. Not only does it determine the corpus that we would accumulate, it also determines the volatility associated with the portfolio. Update: The template has been merged with Freefincal Robo Advisory Software Template. Those who start investing…

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