Publication: The Times Of India Mumbai; Date: Apr 22, 2008; Section: Your Money; Page:40
WHO would buy a product which has a minimum 35% cost in the first year and 5% from second year onwards, with a return of only 5-6%? You’d think not many sane people would do it. Yet, time and again, countless people buy such products for the wrong reasons,likesaving tax, forced savings, and investment. You guessed it—I’m talking about traditional life insurance policies.
Traditional insurance products such as endowment and money-back policies have for long escaped the cost scrutiny that most financial products are subjected to. These products, from LIC or private insurance companies, are sold with a strong emotional pitch, and people who buy it seldom think about what they are getting into. Rarely do they pay attention to what kind of cover they are getting, such is the single-minded focus on what they’ll get back at maturity.
» Read more..
Publication: The Economic Times Mumbai; Date:2008 Apr 16; Section:Personal Finance; Page Number: 19
Retirement at 45 is the dream of many people today, but sadly very few realise what it takes to make it come true, finds Amar Pandit
As Kids, we always thought adults who work were so lucky as there was no school or college to attend. However, the reality starts when you are in the midst of your career and you realise life as kids was perhaps the best time of your lives. Similarly, there is a feeling that retirement could be that ideal period. However, I am not sure if you would feel the same when you managed to actually retire at 45. The grass is always greener on that side of the world. It is thus paramount to understand the purpose of retiring early, which might seem trivial now but will have a solid bearing on your retirement. Once you have figured out your purpose, the next thing is to work out a strategy on how to get there. So what does it take to retire at 45? The first step is to find out the magic number, big enough that enables you to maintain your lifestyle, aspirations, provide for contingencies and finally leave a legacy for your family and the world.
Publication: The Times Of India Mumbai; Date: Apr 8, 2008; Section: Your Money; Page: 40
Pilots are precise about their route and destination when flying. Why should it be any different with their finances?
Sometimes, it seems to Arun Raj that he spends more time in the sky than on terra firma. This thirty-something pilot is too busy flying from one place to another to devote much time to his family’s finances. Like many other people, he relies on his wife, banker, agent, and brother for advice, and has accumulated a variety of assets over the years. His financial strategy appears similar to the one he uses for his hobby of collecting pens: he has several investments, insurance policies in every family member’s name, and some real estate in Pune that he inherited. The Raj family lives in comfort.
Publication: Business Standard Mumbai; Date: 6 April, 2008; Section: Investing
INVESTING: Short-term money should not be in equity as you never know when the tide turns.
Rakesh Mehta, a businessman in his late fifties, is surrounded by brokers, agents, banks and portfolio managers all the time. In the last few years, he devotes more time to stock market than his business. And why not, his portfolio has consistently returned a massive 60 per cent gain in the past few years.
Besides the regular churning of the portfolio, he has moved all the surplus money into equities to maximise returns. A cause for fear surely but his confidence stems from the fact that he has not been let down yet. Rejigging the stocks also meant that the period he remains invested has come down to just three to six months.
» Read more..