I am getting married in a couple of months. My fiance and I want to buy a car (up to Rs 5 lakh) two years from now and save Rs 5 lakh for kids three to four years later. We have Rs 5-6 lakh investments in fixed deposits and the public provident fund. We both are repaying a home loan each (EMI = Rs 18,000). Another important goal is to start prepaying in five to six years. How do we starting planning? We earn close to Rs 40,000 each.

Financial Planning: Malhar Majumder

Business Standard

Understanding earnings quality and PE ratios can help you find value deals in this market.

Finding a value deal

The duration of a life insurance policy should be determined on the need and the purpose for which the policy is taken. For example, if a child endowment policy is taken to cover the expenses of a child's education, it should ideally coincide with the age at which the child is expected to go for higher studies. In case the policy is taken to build a retirement corpus, it should coincide with the retirement age of the insured. Where a policy is taken to cover the risk of death and to provide income to the dependants, the duration of the policy should normally extend up to the working lifetime of the assured and, sometimes, even the whole of life.

Life Insurance: Deepak Sood

The department allows you to revise these, but there are strict conditions to be noted.

Made a mistake in filing I-T returns?

My car was inadvertently insured twice with two different insurers. I feel there is no point in keeping both the policies.

General Insurance: Gaurav Garg

When a part prepayment of Rs 4 lakh did not change his equated monthly instalment (EMI), 32-year-old Rahul Mishra was taken completely by surprise. On enquiring with the bank, he was told that his tenure that had increased by a good 10 years due to repeated rate hikes, had come down to the original tenure (19 years left). &quot;That was at least some relief,&quot; said Mishra.

Prepay a bigger amount to reduce tenure 

State Bank of India (SBI), the country&rsquo;s largest lender, on Wednesday said it would offer a discount of 25 basis points (bps) to prospective floating home loan customers during the festive season. The move follows leading home loan players like ICICI Bank and HDFC launching fixed-cum-floating home loans to attract customers during the festive season.

SBI offers discount of 25 bps on home loans

With the Bombay Stock Exchange Sensitive Index, or Sensex, falling by a little over 14 per cent in the past year, things are not looking so good for stock market investors. Even the top blue-chips have suffered. And, a sharp rise in interest rates has made many investors bearish on a number of interest-sensitive sectors.

Moving away from stock herd

The ONGC follow-on offer (FPO) is expected soon.

Investing: Rishi Nathany

Travelling and studying will become more expensive. Even your stock portfolio is likely to suffer.

Weak rupee, slipping fortunes

Consider inflation, life expectancy and monthly expenses to calculate corpus needed.

Start early to make future perfect

Show Form 10E which gives the true picture of salary earned in the earlier years.

Reduce tax liability on arrears

Aiming to provide relief to stock market investors facing negative cues of late, the finance ministry is planning to reduce duties on transactions in equities and currency derivatives. It is considering a cut in the securities transaction tax (STT) as well as a reduction in stamp duty on &lsquo;futures and options&rsquo; and currency derivatives.

FinMin move to slim duty on stock trade

Wait for clarity to emerge, unless you are willing to book losses.

When stocks hit the lower circuit

Alternate investment guidelines protect investors against fraud, but the risks for HNIs have increased.

Good for retail, risk for HNIs

I, 36, have four endowment plans. I am planning to buy one more term plan, with an assured sum of Rs 50 lakh, to increase my risk coverage. My investments include a public provident fund (Rs 80,000) and mutual funds (two investments: Rs 80,000 and systematic investment plans (SIP) in four tax-saver and two large-cap funds). I am paying more than Rs 50,000 annually, as premium towards insurance policies.

Past returns lower than MIPs, but these funds provide an opportunity to lock in at higher rates.

Use capital protection funds to tackle volatile times

Credit card users are being lured with discounts on expenses, though conditions apply.

Getting rewarded for spending 

The Insurance Regulatory and Development Authority has allowed portability. However, these aren&rsquo;t portable, as they are long-term (3-15 years). They carry assured benefits which vary. The long-term nature of benefits requires the insurer to create a reserve for such payments, based on actuarial assumptions. The products vary from company to company, making portability benefits complex.

Opt for upfront discounts rather than reduced interest rate offers.

Festive bait for car buyers  

Looking beyond the price could help you pick the right cover.

Shopping for life cover online?

Personal Finance: Read about the smart strategies for Personal Finance Planning, Investing, Insurance, banking, budgeting, loans Tax Planning, retirement and insurance. Browse Business Standard to learn more on Personal Finance.

Personal Finance: Investing, Planning, Retirement, Loans, & Insurance | Business Standard

Read about the smart strategies for Personal Finance Planning, Investing, Insurance, banking, budgeting, loans Tax Planning, retirement and insurance. Browse Business Standard to learn more on Personal Finance.

Page 895 - Personal Finance