Pay off home loan or invest for retirement? Calculate and find out!

Recently subra wrote an article on Payoff Mortgage or Invest…continued. Here is a calculator to fortify the argument

I have modified my financial freedom calculator to accommodate immediate lump sum investment to the lender to check if that option is better than investing the money for retirement (aka financial freedom)

The excel file explains the options available when you have a home loan and tells you which route is quicker (in terms of years to financial freedom): read more

Good Calculators by Others

OMG! Just Realized My Insurance Policies are Worthless! What do I do?

Thanks to the untiring efforts of many personal finance bloggers, the message “Don’t mix insurance and investments” is spreading fast and creating awareness.  The message is intended primarily for those who are thinking about buying a pension-plan, child-plan, ULIP, endowment plan etc. but have not yet done so. Unfortunately the message strikes fear and panic 😯 in people who already have such policies. The frantic question posed in the title is often the result. read more

Comprehensive Mutual Fund Investment Mode Comparator

This tool allows you to compare different mutual fund investment modes like SIP, growth-SIP, lump sum, STP and VIP. Using historical Sensex monthly data (source: Capitalmind.in) it calculates, for each investment mode, the probability of loss (ie. portfolio value less than total investment). It also calculates the probability of one mode outperforming the other. For example probability of growth-SIPs doing better than SIPs, STP doing better than lump sum etc.  For an input investment duration (eg. 10 yrs) the probability calculations are made by considering every possible such duration between a start year and an end year which can be chosen between 1980 to 2012 (277 such periods for 10 yrs duration). read more

The Contented Investor

One of my teachers once told me, “stare at every graph and every equation you encounter. Milk all the possible information you can out of them before you move on.” This advice helps me on an everyday basis: to teach, research and learn personal finance. Most importantly it allows me to be a contented investor. When it comes to personal finance one graph and one equation does this more than anything else. read more