Page 10 - Guide To Personal Finance

Three financial planning mistakes experts make

Your financial plan should not be based on slogans or catchphrases. Instead, keep asking why till you agree with the rationale behind your plan

2.5% interest, tax exemption on maturity make gold bonds attractive

But there's a lock-in of five years and investors lose tax exemption if they exit prior to maturity

Update your nominations, review credit report before the year ends

Ensure that loans are properly closed and documents submitted to the lender returned

Sectoral, thematic funds: Investors should avoid extrapolating past returns

Such behaviour leads to chasing funds that are past peak performance

US Federal Reserve's potential 2024 rate cuts may extend rally in silver

Investors must, however, be prepared for greater volatility in white metal

Upbeat outlook amid stable credit environment, high portfolio yield

Take moderate exposure to these funds, given the potential for defaults and downgrades in their lower-rated portfolios

Sovereign green bonds for NRIs offer credit-risk-free returns in long term

Investors should be mindful of exchange rate risk and limited liquidity in secondary market

EV insurance: Ensure all-round protection for battery with add-on cover

Return-to-invoice, zero depreciation for major components are must-haves

Retirement planning for self-employed: Invest in NPS, PPF and MF SIPs

Instead of reinvesting all surplus in business, invest a part in accumulating a corpus

Plan in advance for high costs of IVF, surrogacy; consider insurance

Couples opting for surrogacy must bear medical expenses, buy health insurance for the surrogate

Go for gold bonds if you have long horizon, ETFs if you need liquidity

Buy jewellery for consumption; it is inefficient for investment purposes

Planning to buy a car? Minimise tenure, maximise down payment on loan

Selling the old car independently, rather than going for an exchange offer, may fetch better value

Avoid withdrawing more from National Pension Scheme than you need

When the subscriber reaches superannuation or the age of 60, 60 per cent of the total corpus accumulated in NPS can be withdrawn as a lump sum

Prioritise paying off high-cost debt with Diwali bonus you receive

It would also be prudent to channel some of it into replenishing emergency corpus

Dynamic bond funds: Trust manager who has navigated rate cycles properly

Fund managers of dynamic bond funds, too, hold divergent views currently

Small-cap funds: Existing investors should rebalance, continue SIPs

New investors planning large lump-sum investments should stagger them over 6-12 months

Seek refund if alterations in realty project plan affect you adversely

Refund can be sought from the developer even if you had earlier consented to alterations

Received intimation notice from I-T dept? Rectify or clarify discrepancies

If you agree with the notice, file updated return and pay tax dues; if you disagree, send explanation

Managing rent, setting up investment strategy: Top personal finance stories

What tenants should ask from landlords in rent agreements; how to bring discipline in your market play. Our newsletter explains

Planning to buy a premium property? The location holds key to value

Buy property in a much sought-after area where potential for supply expansion is limited