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How you can effectively do the Financial Planning for your Retirement & for your Childs future and build enormous Wealth for you & your future Generations in India by SIMPLE Financial Planning?
[ For Resident Indians & NRIs]
Investta.com A Personal Finance Forum, Discuss Everything about Financial Planning!!! MyJourneyToBillionaireClub.Com Indias Leading Personal Finance Blog
Asav Patel
Personal Finance Blogger, Ahmedabad, India Blog: www.MyJourneyToBillionaireClub.com Forum: www.Investta.com E-mail: asav4u@gmail.com
Copyright Notice
2011 by MyJourneyToBillionaireClub.com & Investta.com. All Rights Reserved. Copyright holder is licensing this eBook under the Creative Commons License, Attribution 3.0 http://creativecommons.org/licenses/by/3.0/us/ Please feel free to post this eBook on your blog, email it, send it to your friends, or link to it with whomever you believe will benefit from reading it.
Index
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. Introduction: Financial Planning in India What is Financial Freedom? The Definition Know the Power of Compound interest before starting Financial Planning How much is enough to retire in India? Budgeting: The most important Exercise Why Budgeting? So you spend less than you Earn Get out of Debt: The first step of Financial Planning How to get out of debt? Emergency Fund A Must Thing Financial products available in India Financial planning for Retirement Financial planning for childs future Consider inflation Basic asset classes Investment time horizons The power of long term investing Best financial products in India Best asset class Equity Know the power of equity Worst financial products in India- Avoid these products any how Keep (Insurance) agents out of Financial planning game ULIP Charges in India The Simple & most Powerful Financial Planning formula Term Insurance + Mutual Funds + PPF Pure term life insurance Online term insurance plans in India Medical check-ups for Term insurance plans Is it necessary?
26. Mutual funds 27. PPF (Public Provident Fund 28. Asset allocation 29. Mutual Funds Portfolio Building 30. NFOs A Risky Bet Beware NFO Lovers 31. The power of SIP (Systematic Investment Plan) 32. How to Choose Best Mutual Funds in India? 33. How to Invest in Indian Mutual Funds? 34. KYC (know your Client) for the Mutual Funds 35. Direct Equity Investing: Myths & Facts Is it for You? 36. What is Demat Account? How to open Demat account in India? 37. How to learn stock market investing? 38. Value Investing Benjamin Graham Formula 39. IPO Investing Good or Bad? 40. When to Buy a Home on Home Loan? 41. PAN Card 42. Tax Planning for Dummies in India 43. Income Tax Benefits on Home Loans in India 44. HRA House Rent Allowance 45. Tax Saving Infrastructure Bonds Section 80CCF 46. Gift Tax in India 47. Wealth Tax in India 48. Income Tax Return (ITR) filing Which ITR Form to Use? 49. Fixed Deposits & Government Bonds in India 50. Corporate (Company) Fixed Deposits in India
51. Post-office Savings Schemes in India 52. Gold Investing in India 53. Chit Funds in India 54. Digital Assets / Web Properties The Next Generation Investing 55. Art Investment in India 56. Offbeat Assets 57. Health Insurance (mediclaim) in India 58. Gold Loan in India 59. Personal Loans 60. How to Generate Steady Income after Retirement? 61. NPS (NPS) New Pension Scheme A Bad Idea 62. EPF (Employees Provident Fund) 63. Car & Auto Loans in India 64. WILL A Very important step of Financial Planning 65. Top 14 Most Common Financial Planning Mistakes 66. 5 Model Portfolios of Intelligent Indian Investors - Financial Planning for NRIs - About the Author - About MyJourneyToBillionaireClub.com - About Investta.com - Special Offer to the Readers - Feedback - Download My Journey To Billionaire Club eBook for FREE
3. Know The Power of Compound Interest before starting Financial Planning START EARLY & WIN THE RACE!!!
Albert Einstein once said that, The Compound interest is the greatest Force in the Universe. He also said that. The Compound interest is the 8th wonder. Just remember one thing that, investment/financial planning is not just the game of money but its the game of money and time both. The more money and time you invest, the more it will grow and more financially free and rich you will become. If you never save and invest your money, the compound interest will never work for you and thus, you will never become rich. Many people argue that, retirement is still decades away so why to hurry? Well, if you know the power of compound interest, you will understand that the people who have started investing early will accumulate more wealth than people who started just 5 years late even if they save and invest double amount of money for the rest of their lives. This is because people who started early have invested more time and time is the important element of success of financial planning. So if you are reading this eBook than no matter in which age group you are, start financial planning, savings and investing right now. The best time of investment was 20 years before & the second best time is NOW!!! So Start investing NOW!!!
6. Why Budgeting?
I know that budgeting is the most boring part of the financial planning game. Its most boring exercise. And many people ask me that what is the importance of budgeting? Well, the logic behind budgeting is, You Should Spend Less than You Earn Unless you keep track of your all income sources and all kind of expenses, you will never know that weather you spend less than you earn or not? And spending less than you earn is the key of successful financial planning , build wealth and fulfill your financial goals. Many people spend more than they earn by excessively using the credit cards. The idea behind Budgeting Exercise is, you minimize your expenses, increase your income and thus increase the Cashflow (Income Expense) and divert this cashflow towards long term investing. Unless, you divert your cashflow towards investing to build wealth, you cant be financially free and rich. So do budgeting every month and keep the track of all your expenses. Image Source: bythedrop.com
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-Stop Borrowing More Money -Cut Down Your Credit cards & replace them with Debit Cards.
Your Brother-in-laws birthday is not the emergency. Emergency fund is mainly for the financial emergencies like medical emergency Your credit card is not the emergency fund Emergency fund is not for investments or burning it into the stock market.
Not the all the Financial products can help you to achieve Financial Freedom. Many people invest in all types of financial products available in the market This is a BIG Mistake!!! To do the effective financial planning, you need to understand which financial products are best and which are worst? Only 3 financial products are useful for financial planning Term Insurance, Mutual Funds & PPF
-Consider INFLATION while counting your financial goals for retirement -Consider each and every major and minor expense that you want to do after your retirement. -Many people want to retire before 60 years of the routine retirement age so consider this factor before doing retirement planning. -Equity mutual funds are the best financial products to build enormous wealth for your retirement
The above are the 3 major expenses that you will have to plan for your childs future and build capital accordingly. First of all calculate and decide that how much you will need for each and every expense? And then start investing for your childs future. Remember that, you can t build enough capital for your childs future in just few years. You will need more than a decade to fulfill your childs financial goals so plan ahead and start as early as possible.
-The best time to start financial planning for your childs future is the first day he/she born. The second best time is now. -Consider INFLATION -Equity is the most powerful tool to build wealth for your childs future -Equity mutual funds are the best financial products to build wealth for your childs future -Child future plans and other insurance cum investment products offered by insurance companies are worst. Avoid these products.
-You will require a Compound interest calculator to calculate inflation -Consider 7% annual inflation rate (8% better and to be on safer side) in India for next 20 years at least. -Remember that, government inflation figures are much lower than the actual inflation in the economy so always consider higher inflation rate while planning your financial goals.
Modern (Information Age)/Digital Asset Classes 1. 2. 3. 4. 5. Domain names Blogs Websites Forums Online properties -Assets multiply your money and over the time make you rich and financially free -Equity (Stocks) is the only traditional asset class which has given highest returns than any other traditional asset classes -Young generation (Who born after 1990) believe in digital assets and invest in these digital assets to become rich & financially free. -Digital assets can give you highest returns than any other asset class in this world. -Buying assets out of your money is known as INVESTMENT.
Offbeat assets 1. 2. 3. 4. 5. 6. Stamps Coins Collectibles (Vintage toys, coke bottles, stamp papersetc..) Art & paintings [includes Art funds] Antiques Vintage jewellery
-Equity is the best Asset class for long time horizon -Long time horizon investments are to multiply your money & build Wealth - Short & Medium time horizon investments are to preserve and grow the purchasing power of your money for the purpose of near future -Ultra-short time horizon investments are not to multiply your money but to maintain the liquidity of your money say for example Emergency fund. -Equity is not for the short & medium time horizon investments because of volatility.
It is obvious that the younger investors get a lot more heavy lifting from their investments because of the power of the compound interest. The lesson is clear: The earlier you start the less you have to invest to reach your financial goal.
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What is Inflation?
Once upon a time there was a small island which had 5 people and 5 gold coins and nothing else. One day, people decided to print 5 notes of 1 rupee each for the transaction purpose. So how much one gold coin worth now? Well, 1 Gold coin = 1 Rs. Right? Now after a year, these people became greedy & they thought that printing money will solve their financial problems so they printed 5 more rupees and pushed it into the circulation. So now how much one gold coin worth? Well, now 1 Gold coin = 2 Rs. Right? Moral: It is not actually the price of gold which is going high. The gold is same here (5 coins). It is actually the price of money going down & this is known as inflation. Whenever, the governments & central banks from all around the world print money, the purchasing power of money goes down & the price of the gold goes up because now more money is available to buy the same amount of gold. Gold has doubled in its price from 2007-2010. this means governments from all around the world (mainly US Government) has doubled the money supply by printing money out of thin Air!!!
-Above are the best financial products in India that you will require to do the effective and successful financial planning. -Equity mutual funds and equity are the best financial products to build long term wealth -Term life insurance is the best financial product to cover your life with adequate cover -Bonds (Government & Private sector), Bank FDs & Post office savings schemes are best financial products to generate steady income after retirement safely.
-No other financial product is as cheap as Mutual Funds in India as they will charge 0% Entry load and 0% Exit load after 365 days of investing. [1.5% Annual Fund management charge] -Insurance companies claim that their financial products (ULIPs, Child future plans, pension plans, money back plansetc) are better than any other financial product available in the Indian market but well this is not the TRUTH. -Term insurance is the only best product being sold by insurance companies
18. Best Asset Class: Equity Know the Power of Equity Really Risky?
Gone are the days when people used to build wealth with fixed income instruments such as PPF, Bank FDs and Government Bonds. Equity is the must have asset class in anyones portfolio to build wealth in todays world. Most of the Indians dont invest in equity because they think that equity is RISKY. But well, equity can beat the two biggest wealth killers in the long run and provide highest returns than any other traditional asset class in the world. 1. Inflation 2. Tax So consider, equity as a major asset class in your portfolio during the first decade of your active earning life at least. Equity has power to transform an ordinary individual into a financially free and independent individual over the period of time. Benjamin Graham Equity is a Voting Machine in short Run & Weighing Machine in the Long run. -It means over the time the volatility in equity reduces and it gives you excellent returns. But for that you will have to start Investing early.
Is it
-No need to learn direct equity investing now a days. Equity mutual funds will do all the job for you. -Equity mutual funds are so much convenient and professionally managed and cheap (Entry load is 0%) that they can build enormous wealth for you in the long run. -Equity can build enormous wealth for you in the long run that you can fulfill all of your and your childs financial goals -95% of the people have made money from equity who invested for 5 years and 100% have made money from it who invested for 10 years.
19. Worst Financial Products in India Avoid These Financial Products ANYHOW !!!
1. 2. 3. 4. 5. 6. ULIPs (Unit Linked Insurance Plans) Whole life insurance plans Money back insurance plans Pension / retirement plans Child future plans Any INSURANCE CUM INVESTMENT product
-Insurance + Investment = Bad Combination -Never mix insurance with investment or buy any financial product which is the mix of insurance and investments -For a life cover, term insurance plan is the best product and to build wealth/investments equity mutual funds are the best products -ULIPs, Whole life insurance plans and all the other insurance cum investment products selling by insurance companies in India are very very COSTLY. These products will charge lots of charges from you and invest very less money for you.
-ULIPs and other insurance cum investment products give you just 5 to 10 times life cover than the annual premium. So for Rs.1 lakh of annual premium, you will get just Rs.5-10 lakh of life cover which is peanut size in comparison to the term insurance plans. -Many ULIPs and other insurance cum investment products charge 20-100% premium allocation charge from your first premium. While mutual funds charge 0% Entry and Exit load (After 365 days).
There is a JOKE on insurance cum investment products. The insurance cum investment financial products are the most profitable financial products when you are on Selling Side It means you can only make huge profits from these products if you sell them to other fool. The agents are getting huge huge commissions on these costly financial products. Sometimes 100% of the first premium!!!
The above are the commonest SLAES SPEECH of the insurance agents. Dont get fooled by these words. Term insurance is the only best insurance product being sold by the insurance companies and all the other insurance cum investment products being sold by the insurance companies in India are very costly.
22. The Simple & Most Powerful Financial Planning Formula Term Insurance + Mutual Funds (Equity & Debt) + PPF
The most simple and the most powerful financial planning formula to build wealth , save tax and cover your life (insurance) is, Term Insurance + Mutual Funds (Equity & Debt) + PPF No other financial product is as cheap and as effective than the above simple combination. The life cover provided by the ULIPs & other insurance cum investment products (Pension plans, child future plans, whole life insurance plans & money back insurance policies) is just 5-10 times the annual premium which is a peanut size in comparison to the life insurance cover provided by the pure term life insurance policies.
-ULIPs, Pension Plans , Money back insurance plans & child future plans are costlier than this simple combination of 3 financial products. -Mutual funds have 0% entry load & 0% Exit load after 365 days. -ULIPs & other insurance cum investment products will charge 0 to 100% as premium allocation charge from your 1st & subsequent premiums.
The above simple formula/financial combination is both for your retirement planning & child future planning. Child future planning is not different than your retirement planning. You dont need any child future plans or complicated financial products by insurance companies to build a wealth for your childs future. As these products offered by insurance companies are very costly.
You will diversify the risk of rejection by dividing your life cover -Insurance cum investment products will in 2-3 term insurance plans. give you just 5 to 10 times life cover than 2. During your retirement/old age when your dependents become financially free and you become liability free, you can discontinue the annual premium which is very small in comparison to term insurance plans. 1 or 2 term insurance plans and reduce your life cover and premiums also. If you have invested in just 1 term insurance plans -Insurance cum investment products are than this wont be possible. very costly as they charge 20-100% of entry All the insurance cum investment financial products in India are very load from your annual premiums by various charges like premium allocation costly and should be avoided. Remember that, you need a pure term life insurance policy to cover your life, equity mutual funds charges, mortality charges, administrative to build a wealth and PPF to save lots of tax under section 80c. chargesetc -Many insurance cum investment products charge 100% from your 1st Premium!!!
Online Term Insurance Plans in India 1. 2. 3. 4. 5. ICICI iProtect AEGON Religare iTerm Kotak e-Insurance Plan Metprotect Online Many other online term insurance plan will come in future
Well, dont afraid of medical check-ups. All they will do is, collect a sample of your blood and send for various investigations, take your ECG and then you will be examined by a physician. Many people avoid buying term insurance plans because they want to avoid the medical check-ups. Dont do this mistake. Think of your nominees/dependents and go for it.
-Mutual funds have 0% Entry load & 0% Exit load after 365 days of investing. -No other financial product is as cheap as mutual funds. -MFs charge 1.5% Fund management fees every year -All the insurance cum investment products offered by insurance companies are HIGHLY OPAQUE mutual funds which charge 20-100% entry loads by various charges so avoid them anyhow. -Exit from any insurance cum investment product and start SIP in mutual funds.
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What is Hyperinflation?
Do you know that What is Hyperinflation? Well, hyperinflation means excessive inflation in very short period of time. When the government prints money out of thin air to solve the financial problems of the nation, the purchasing power of the money goes down markedly. See the photographs on left side. It is the Zimbabwe Hyperinflation in 2009. You can see the 100 Billion Zimbabwe dollar bank note. And you can buy just 3 eggs from it. In 1923, Germany had also suffered from the Hyperinflation after World War I. Moral: Printing money is not the solution of financial problems. Today governments & central banks around the world are printing money out of thin air to solve the financial problems of the nation. But well, this will cause hyperinflation.
Thus, if your age is 20 years than you should invest 80% in Equity in 20% in debt while if your age is 50 years than you should -Remember, equity is the most powerful asset invest 50% in Equity and 50% in Debt. class to build wealth if you start early and stay invested for more than 10 years of time horizon. Many people started investing lots of money in gold after 20032010 gold rally. But remember that, equity is the only asset class which can give you highest returns than any other asset class in the long run. So dont ignore the importance of equity in your portfolio & never invest more than 10% of your net worth in Gold. -Many financial advisors advise people to invest 100% in debt after retirement (60 years) but I personally believe that, one should invest in equities even after retirement.
Are NFOs really cheap? Nope. Even though the NFOs have Rs.10 per unit NAV price, the underlying market is same stretched or contracted. Second thing is that, Unit price (NAV) does not have to do anything with MF returns. Suppose if Fund A has NAV of Rs.10 and Fund B has NAV of Rs.1000 having identical portfolios and after one year suppose both the funds will generate 10% return, the NAV of fund A will be Rs.11 per unit and fund B will be Rs.1100 per unit. NFOs dont have any past proven record of good performance and thats why they should be avoided. A smart investor is one who invests in mutual funds having past proven record of more than 5 years of good performance.
Image Source: Fidelity.co.in SIP (Systematic Investment Plan) is the most powerful way of invest in equity via mutual funds and build wealth over the period of time. SIP works like this when the market is up, you will buy less units (automatically) and when the market is down you will buy more units (automatically). Over the time, this strategy will dramatically reduce your overall entry price in the market and gives your excellent returns. In the real life people do exactly reverse means when the market is up, they run to buy stocks and the market is down, they sell their stocks and run away from the market. SIP develops patience and systematic discipline in your investments and build huge wealth over time. Start monthly but REGULAR SIP in equity diversified mutual funds since the first day of your active earning life and do this SIP for 10,15,20 or even 25 years or even more and see how wealthy you will become. The compound interest is so powerful over the time that it will multiply your money in a breath taking manner.
You can either visit the website of any mutual fund house and download the form and fill it with required documents and submit it to your nearest fund house office. You can also invest in mutual funds from your online demat account. ICICIDirect.com gives this facility. Many other online demat services in India also gives the same service. The best thing about investing through online demat account is that, you dont have to do any paperwork as everything is online. While in case of buying mutual fund units directly from the fund house, you will have to submit all the physical documents and lots of paperwork. NRIs & Mutual Funds -NRIs can also invest in Indian mutual funds. However, according to SEC, the NRIs living in America cant invest in Indian mutual funds of US origin say HSBC, Fidelity & Templeton. -All the other Indian origin mutual funds are open for NRIs.
Additional KYC Documents for NRIs Notarized GPOA Copy of CDC & Mariner Declaration (For Mariner) Indian Passport, Overseas Employment issued by the Government Foreign passport / National ID Card / Social Security Card (For PIO)
-Returns generated by professional direct equity investing and mutual funds are exactly the same. -If you are going to invest in equity by following the advise of your friend/broker/brother-in-law than direct equity investing is not for you. -Mutual funds have a team of research analysts who take highly informed decisions on behalf of you. -Only go for direct equity investing if you are willing to invest 1-2 hours a day for equity market research
36. What is Demat Account & How to Open a Demat Account in India?
Before 1995, the shares (Stocks) in India were traded in the physical form. But after 1995, the government of India and SEBI has digitalized everything. And this new digital form of the shares is known as Dematerialization (Short form Demat). So now, you can not buy, sell or transfer shares in India without Demat accounts. You can open Demat account with anyone. It may be your bank, private broker or independent brokerage service. But without demat account you can not trade shares. Now a days, online demat accounts available in the market so that you can buy Before choosing a Demat Service... and sell shares online with a single click. You will need to submit PAN Card, Passport/Driving License, Residential proof along with a demat -See the Brokerage rates 0.50% or application form to open demat account with your bank or some other less for delivery base and 0.10% or brokerage service. Following are the few best demat services in India. less for trading is the best brokerage rate. ICICI Direct Kotak Securities -See for the online demat services SBI Sharekhan -Services which provide online Motiwal Oswal trading terminals are good Angel Broking -See customer reviews online before India Bulls going for demat services And many others.
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Benjamin Graham -This calculation should never be used in isolation. -The investor must take into account other factors like Debt to Equity ratio, net current asset value, quality of current assets and other macroeconomic factors. -Analyzing each stock in the stock market by this method is not difficult but time consuming. And this is the reason I advise people that if you are not willing to spend your time, direct equity investing is not for you.
Image Source: Rediff.com -Invest in IPOs only if you think that the company is fundamentally strong and you are willing to stay invested for a long time horizon (> 5 years) -Check the CRISIL IPO rating before investing - CRISIL IPO Grade 3 or more is the good indicator to invest in IPO. -Most of the government PSUs have 4+ CRISIL grading.
Principal: Under Section 80C, you can get tax deductions up to Rs.1 lakh every year on the principal amount paid. Interest: Under Section 24(b), interest component of EMI is eligible for deduction from taxable income if the loan is on a property/house that you are currently living in. you can claim MAXIMUM Rs.1.5 lakhs in every financial year.
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Some Useful Tips -If you are living in your own house than you can not claim HRA even if you get HRA allowance from your employer -If your house is in your parents /spouse name than you can claim HRA by showing that you are living on rent. -If you have taken a home loan to buy a house and you are living in rental house than you can claim HRA & home loan tax benefits both. -If you are not employee (selfemployee/businee owner) & living in rental house, you can still claim HRA under section 80GG
-If you receive a gift of Rs. 50 Lakh from your fathers brother (your uncle ), it will not attract gift tax. -If you receive a gift of Rs. 50 Lakh from your fathers brothers wife (your aunt), it will not attract gift tax. -If you receive a gift of Rs. 50 Lakh from your wifes father (your father in law), it will not attract gift tax. -If you receive a gift of Rs. 50 Lakh from your wifes fathers brother (your wifes uncle), it will attract a gift tax. -Gift money to your Major Children: Suppose if you have Rs.50 lakh than income generated by investing this money will be taxable. In this case you can divide this money & gift to your major children and then it will be considered as their income and tax slab thus you will save tax.
The wealth tax is the tax which is to be paid on your wealth. Here are the few things which are considered as your wealth. Residential House Moto car Jewellery Yacht / Boat Aircraft Urban land Cash on hand
Wealth Tax Rules are same For Resident Indians & NRIs Wealth Tax Exemptions -Cash on Hand < 50k -Aircraft or boat used for business purpose provided by the company -Furniture & electronic items for personal use -Accommodation provided by the company or organization to its employee. The annual salary of the employee is less than Rs 500,000 Any land donated for the religious purpose or to charitable trust is not subjected to wealth tax. - Assets transferred to sons wife, spouse, grandchildren, & assets held by minor child.
How much is Wealth Tax in India? Net Worth - < Rs.30 Lakhs NIL Net Worth > Rs.30 Lakhs 1% on the amount which exceeds Rs.30 lakh Say for example if your net worth is Rs.40 lakhs than you are liable to pay tax on extra 10 lakhs at the rate of 1% per annum means Rs.10,000. Here you dont have t pay any wealth tax on the entire 40 lakhs. But you will have to pay tax on anything which exceeds 30 lakhs.
Form ITR1 For Individuals having income from, Salary / Pension / Family Pension Interest Form ITR-1 is not for people having capital gains, or for people having income from house property or business / profession. Form ITR2 ITR-2 is for individuals and Hindu Undivided Families (HUFs) having income from: Salary / Pension / Family Pension Interest House Property Capital Gains Form ITR3 From ITR-3 is for individuals or HUFs that are partners in firms, but who are not carrying out business or profession under any proprietorship. ITR4 Form ITR-4 is for individuals and HUFs that have income from a proprietary business or profession.
-You can now file your IT Returns Online in India. -Visit Government of India Online Tax Filing Website & file your IT returns online. -There are several private websites that also offer you online tax filing services.
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The only problem in India is higher inflation. Suppose if the inflation rate is 10% per annum and your FD/Bonds generate 8% annual return than your actual return is -2% (Negative). Thus, actually you are loosing 2% every year from your money parked in these instruments in terms of purchasing power. Another problem is Tax. Interest income will be included in your total income and will be taxed according to the tax slab you fall.
How to Invest in Post Office Saving Schemes? Visit your nearest post-office branch and you can open any of the above schemes from there. They open an account after some paperwork & give you a passbook for your account.
SCHEME
Interest Rate
Investment Limits
Minimum INR 50/-. Maximum INR 1,00,000/- for an individual account. INR 2,00,000/- for joint account. Minimum INR 10/- per month or any amount in multiples of INR 5/-. No maximum limit. Minimum INR 200/- and in multiple thereof. No maximum limit.
One withdrawal upto 50% of the balance allowed after one year.
Interest payable annually but calculated quarterly. Period Rate 1 yr. A/c 6.25% 2 yr. A/c 6.50% 3 yr. A/c 7.25% 5 yr. A/c 7.50% 8% per Annum
Account may be opened by individual. 2,3 & 5 year account can be closed after 1 year at discount. Account can also be closed after six months but before one year without interest. The investment under this scheme qualify for the benefit of Section 80C
In multiples of INR 1500/- Maximum INR 4.5 lakhs in single account and INR 9 lakhs in joint account.
Maturity period is 6 years. Can be prematurely encashed after one year but before 3 years at the discount of 2% of the deposit and after 3 years at the discount of 1% of the deposit. (Discount means deduction from the deposit.) A bonus of 5% on principal amount is admissible on maturity in respect of MIS Deposits qualify for deduction from income under Sec. 80C of IT Act. Interest is completely tax-free. Withdrawal is permissible every year from 7th financial year. Loan facility available from 3rd Financial year. A single holder type certificate may be issued to an adult for himself or on behalf of a minor or to a minor, can also be purchased jointly by two adults.
PPF
Minimum INR. 500/- Maximum INR. 70,000/- in a financial year. Deposits can be made in lumpsum or in 12 installments. No limit on investment. Available in denominations of INR. 100/-, INR. 500/, INR. 1000/-, INR. 5000/-, INR. 10,000/-, in all Post Offices and INR. 50,000/- in all Head Post Offices. Minimum INR. 100/- No maximum limit available in denominations of INR. 100/-, 500/-, 1000/-, 5000/- & INR. 10,000/-. There shall be only one deposit in the account in multiple of INR.1000/maximum not exceeding rupees fifteen lakh.
KVP
NSC
A single holder type certificate can be purchased by an adult for himself or on behalf of a minor or to a minor. Deposits quality for tax rebate under Sec. 80C of IT Act. Maturity period is 5 years. A depositor may operate more than a account in individual capacity or jointly with spouse. Age should be 60 years or more. and 55 years or more but less than 60 years who has retired on superannuation or otherwise on the date of opening of account subject to the condition that the account is opened within one month of receipt of retirement benefits. Premature closure is allowed after one year on deduction of 1.5% interest & after 2 years 1% interest. TDS is deducted at source on interest if the interest amount is more than INR 10,000/- p.a. The investment under this scheme qualify for the benefit of Section 80C of the Income Tax Act, 1961 from 1.4.2007.
9% per annum
This is the information age and you MUST be familiar with the new asset class Digital Assets also known as Web properties or Internet Assets. Right now the young generation (teen agers, 20s & early 30s) from all around the world is investing in the web properties for huge profits. -Website Flipping is the hottest investment & money making opportunity online. Website flipping means developing a Web Properties/Assets: website/blog out of scratch or buying an already established website/blog & selling it for huge profits later on. Domain names Websites -Domaining/Domain flipping: means buying & selling domain Blogs names. Forums -Flippa.com is the reputed marketplace where you can buy web Facebook Applications properties for investment purpose and later on sell them for huge iPhone Applications profits. Anything else which is on the Internet -GoDaddy.com is the website where you can buy domain names for just Rs.500/year charge. Advantages of investing in Web Assets: Fastest growing asset class Potential to make you very rich in young age Low investment capital required -Sedo.com is the largest online marketplace to buy and sell domain names. -Always make overseas online payments for web property transactions via PayPal.com or Escrow.com
How much return Vintage/Offbeat Assets generate? Where to buy & sell offbeat assets? You can expect 20-30% compounded annual returns from these assets. You can buy & sell these assets on eBay, auctions or from private seller. Caution: Investing successfully in offbeat assets require deep knowledge of the market otherwise you will end up buying artificial assets at over price. Invest in offbeat assets only if you have expertise in it or you know someone who help you to invest in these assets.
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Save Money Old Financial Advise Save & Invest New Financial Advise
Do you know that, Saving Money is the age old financial advise which is no longer effective to ensure any kind of financial success? In fact, today if you follow this advise, you will surely meet the financial disaster. Why Save Money was effective Financial advise once upon a time & not now? Saving money was the golden financial advise during the time of our parents & grand parents. I am talking about the era before 1971 when there was a Gold Standard in the world & the entire money supply of world was backed by Gold. Before 1971, saving money means actually you are saving that much amount of gold. But after 1971, the Gold standard has been removed & the money became Currency. Today if you only save money, inflation will erode its purchasing power as it is no longer backed by any gold. Today you will have to Save & Invest your money to maintain its purchasing power by growing it. This is the only way to maintain the purchasing power of your hard earned money. Moral: Investment is now a MUST learning skill for everyone who want to become financially free. As our parents told us that stay away from investments as they are risky. But well, it was the Gold standard era. Today the scenario is different.
Tips of taking a Gold Loan in India -Cheapest Gold Loan: if you can restrict your loan amount to around 50% of the market value of the jewelry than the interest rates are most reasonable. -Only go for gold loan if you really think that you will repay that money. Because in case of your default, your lender will sell your gold jewellery which is psychologically disturbing. -Smart investors borrow money against gold, invest it in businesses and generate huge returns from this idle asset class. Dont borrow money against gold to do speculative investments. -You can take up to 80-90% loan as that of market value of your gold. -Take gold loan for genuine reasons when all the options to raise money have failed. -Traditional LIC (Non-ULIP) policy is the best alternative to Gold loan which gives 90% loan to surrender value at just 8% interest rate. -Documents required: Original Identification proof & Residential Proof nothing else. -Gold loans usually dont have pre-closure charges
Loan repayment options 1. 2. Regular option: Means you pay Interest + Principal as Monthly EMI Interest Only option: Here you pay only interest during the entire tenure of the loan and pay the entire principal at single shot at the end of the tenure.
Tips: A) For Emergency Purpose, you should have Emergency Fund & not the Personal Loans. B) The Best Financial Planning is one in which the person has build emergency fund so that during any financial emergency he does not have to take personal loan. C) Never use personal loan for Travel, shopping or any other un-necessary things as its costly. Flat Rate Vs Reducing Rate Which is Better? -Always go for Reducing rate personal loans.
Because of the above features the Personal loans in India are very popular. However, keep in mind the following key facts before taking a Personal Loan in India. Facts about Personal Loans: Very Costly: They charge 15-30% Annual interest rates Processing Fee: The Bank will also charge upfront processing fee which is non-refundable to give you this loan. Prepayment penalty: Prepayment of the loan will attract 1-5% of penalty on amount outstanding.
-Your lender will tell you that flat rate is better than reducing rate because of several reasons but this is not the Truth. -Flat rate means at the time of your loan your lender will calculate the interest payment on the entire loan amount for entire tenure and divide it and add it into each EMI. So on your last EMI also you will pay the interest on the entire loan amount. -Reducing rate means you are paying the interest on the amount outstanding. Say for example, if you have taken Rs.5 lakh of loan and paid Rs.3 lakhs than you will have to pay interest on just Rs.2 lakhs outstanding and not the entire 5 lakhs like flat rate like flat rate.
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5. Post-office savings schemes - NSC National Savings scheme (8% annual return) - Post-office Monthly Income Scheme (MIS) 8% per annum - Senior Citizens Saving Scheme (9% per annum)
Tier I Accounts: We can not withdraw money in tier-I Tier II Accounts: We can do unlimited withdrawals in tier-II
-If you are a car lover & want to own a car for just 2-3 years than the car lease is the best option as you can use a new car model for 3-4 years and give it back to the financer and go for another car. -Car lease is not a good option for employees but best option for selfemployees & business owners for the tax purpose. -If you want to keep a car for years or decades, regular auto loan is the best option for you. -Never consider your car as your investment. A car is not your investment/asset as the value of a newly bought car always go down and down.
You can make a WILL on a plain paper in India. Its not legally necessary to make a WILL on stamp paper.
However, it is advisable that you hire some attorney/lawyer to make a professional WILL of your assets.
-Make a WILL to avoid any disputes between your nominees after your death -If you dont want to give anything to your nominees, give everything in some charitable organization. -You can change the WILL anytime. However, in the new WILL make it clear that the old one is cancelled otherwise it will make confusions.
Parts of WILL: 1) 2) 3) 4) First Part: Declaration You will have to declare that you are making WILL in full sense and without pressure of anyone. Details of Property & Ownership Details of Ownership Signing the WILL in presence of 2 Witnesses
All of us are human beings and we afraid of doing mistakes and we learn from out own mistakes. These are the 13 most common financial planning mistakes that you should avoid. Since March 2008 I am advising the financial planning via my blog MyJourneyToBillionaireClub.com and since June 2010, I am advising through my forum Investta.com. These are the commonest financial planning mistakes that I have encountered.
A) Starting Late
Name: Ramesh Kumar Age: 45 Years, Married, 2 Children Occupation: Doctor Monthly Income: Rs.1.5 Lakh Monthly Expenses: Rs.80,000 Monthly Cashflow: Rs.70,000 Emergency Fund: Rs.4 Lakh in Savings Account Started investing in equity mutual funds via SIP just 6 months ago. Mutual Funds Portfolio Equity MFs 4 funds Debt Funds 2 funds ELSS 1 Gold ETF 1 PPF Rs.70,000 / Year
This is the commonest mistake most of the people (especially high earning professionals) do. They think that their income is high so no need to do financial planning & start investing early. Dr. Ramesh Kumar earns lots of money every month from his medical practice but he started investing at the age of 45 years. Thus, to retire with financial freedom, he will have to invest lots of money. While someone who started investing at the age of 25 will definitely be ahead of Ramesh Kumar even thoguh he earns & invests much less amount than Mr. Ramesh because the compound interest will work more in favour of him as he has invested more time. Remember, When you are too smart, You are Too Late!!!
The only problem with this portfolio is that, Mr. Suresh Babu considers his credit card as an Emergency Fund. This is one of the most commonest financial planning mistake. What will happen during the time of Financial emergency? Well, you will scratch your credit card and go into a deep credit card debt. And the ultimate logic of financial planning is you should be debt free Your credit card is not your emergency fund but you should have emergency fund (3-6 months of monthly expenses) for this purpose in your bank savings account.
C) Excessive Debt
Name: Vikas Shah Age: 42 Years, Married, 2 Children Occupation: Software Engineer Monthly Income: Rs.2 Lakh Monthly Expenses: Rs.50,000 Monthly Debt Payments: Rs.1.3 Lakh Monthly Cashflow: Rs.20,000 Credit Card Outstanding: Rs.80,000 Personal Loan: Rs.6 Lakhs Car Loan: Rs.8 Lakh Home Loan: Rs.25 Lakh Term Insurance: 2 Term Insurance plans of Rs.25 lakh each Mutual Funds Portfolio: 3 Equity, 2 Debt & 1 ELSS Fund investing via SIP PPF: Rs.5000 / year The only problem with this portfolio is Excessive Debt Vikas is earning lots of money every month but most of that money (Rs.1.3 lakh) goes towards paying those loan payments. Remember that, Borrower is a slave to lender. In India, many high income group people are passing through this kind of situation. They earn lot but the more they earn, the more they take debt and than they cant stop working. If Vikas had not taken these loans than today his Monthly cashflow was improved by Rs.1.3 Lakhs and he could have easily become financially free at the age of 55.
D) Negative Cashflow
Name: Prakash Parekh Age: 30 Years, Married, No Children Occupation: Lawyer Monthly Income: Rs.70,000 Monthly Expenses: Rs.80,000 (including credit card payments) (Rs.70k + Rs.10k Credit card Debt) Monthly Cashflow: - Rs.10,000 Credit Card outstanding: Rs.60,000 (Growing at the rate of 10k/mth) Term Insurance: 1 Term Insurance plans of Rs.25 lakh Mutual Funds Portfolio: NIL PPF: NIL How someone can spend more than they earn? Well, by scratching their credit cards and borrowing money every month after month. Prakash is a high earning lawyer but he loves to scratch credit cards while shopping and never do Budgeting, the most important financial planning exercise. As a result of this nothing goes towards long term investing (Mutual Funds, PPFetc..) at the end of month. Thus, Prakash spends a lot but no wealth is being created out of that spending. Thus, he cant be retire peacefully unless he makes his cashflow positive by spending less than he earns.
E) Playing it Very Safe - Very Less/NO Equity exposure in Early Years of your Life
Name Mr.Aniket Age 32 Years, Married, 1 Child Occupation Public Relation Officer, XYZ Bank Monthly Income Rs.40,000 Monthly Expenses Rs.25,000 Monthly Cashflow Rs. 15,000 Term Insurance - 2 term insurance plans of Rs.30 Lakhs each Portfolio PPF Rs.30,000 / year ICICI Bank Fixed Deposit (5 years, 8.0% interest) - Rs.2 Lakh SBI Bank FD (3 years, 8.0% interest) Rs.3 Lakh Post-office Recurring Deposit Rs.1.5 Lakh (Rs.10,000 / month) GOI Bonds (8.5% interest) Rs.1 Lakh TATA Motors Fixed Deposits Rs.80,000 Stocks: NIL Equity Mutual Funds: NIL -Mr. Aniket believes to play it very safe. He has not invested anything in equity (Directly or via Mutual Funds). He loves to invest in fixed income instruments. -Age 32 years, 100% Debt allocation & 0% Equity Exposure -Dont play it very safe. Equity is MUST in the initial first or two decades of your early earning life to build wealth. -Equity is the only asset class which can give you highest returns than any other asset class so give it a place in your portfolio. -Inflation in India is roughly 7% and FDs give 8% returns so real return is just +1%
Break Time
Good Debt Versus Bad Debt
Do you know that not the all types of debts are bad. Many personal finance advisors will advise you to get out of debt as early as possible & stay away from new debt. This advise can actually harm you. Because if you follow this advise, you will never take any debt in future Good or Bad and to become rich many times you need to take good debt. Here, understand the difference between two types of debts. Good Debt: Whenever you borrow money to acquire (Buy) assets out of that money, it is known as Good debt such as business loan, real estate mortgage loans, education loansetc..Here ultimately you become the owner of some kind of asset when you repay this debt. Bad Debt: Whenever you borrow money to acuire liabilities out of that money, it is known as a Bad Debt such as Car loan, personal loans, credit card debt, shopping EMIs, loans for travellingetc.. Here you become the owner of something, the value of which goes down markedly (Say for Example car) when you repay that debt. A Good debt will make you rich while a bad debt will make you poor.
H) Investing in ULIPs
Name Mr. Anil Kulkarni Age 34 years, married, 1 Child Occupation Bank Officer Monthly Income Rs.40,000 Monthly Expenses Rs.15,000 Monthly Cashflow Rs.25,000 Portfolio
Term Insurance 2 term insurance plans, Rs.25 lakh each Emergency Fund Rs.1.5 Lakh in Bank savings accounts PPF Rs.50,000 per year Mutual Funds 3 equity diversified mutual funds SBI Fixed Deposit Rs.2 lakh ULIPs portfolio 1. SBI Life Unit Plus Super 2. SBI Life Smart Elite 3. ICICI Prudential Life stage Pension 4. Kotak Wealth Insurance Plan 5. ICICI prudential Pinnacle II
-Mr. Kulkarni is ULIP Lover. He has collected lots of ULIPs in his portfolio thinking that ULIPs will give two benefits Insurance + Investment -Well, ULIPs are the WORST FINANCIAL PRODUCTS of India. -ULIPs are costly because of charges associated with it and ULIPs provide just 5-10 times life cover than annual premium which is peanut size in comparison to the life cover provided by Term Insurance plans. -Get out of all your ULIPs & Never invest in any ULIP or insurance cum investment product. ULIPs have no role in successful financial planning.
Term Insurance NIL Life Cover 2 ULIPs with annual premium of Rs.50,000. Each ULIP provided life cover of 5 times (Sometimes 10 times) the annual premium (Rs.2.5 lakh in this case). Thus, total life cover is Rs.5 lakh Emergency Fund Rs.2 Lakh in Bank Savings Account Mutual Funds 4 Equity Diversified Mutual Funds PPF Rs.70,000 / year
-Mr. Suraj has done BIG financial planning mistake and that is, considering ULIPs to cover his life. -ULIPs dont adequately provide life insurance cover. Just think that what if suppose Mr. Suraj dies today? Will his nominees survive on just Rs.5 lakh of Capital & fulfill their financial goals?....Probably Not. -You need huge life cover (probably Rs.50-75 lakhs) to cover your life and only term insurance plans can provide this much of life cover. -Term Insurance plans provide adequate life cover with cheapest premium rates so go for them and avoid ULIPs
J) Having only one Term Insurance Plan: Divide life cover in 23 term insurance plans
Name Rajesh Kumar Age 50 years, Married, 2 Children Occupation Professor Monthly Income Rs.60,000 Monthly Expenses Rs.40,000 Monthly Cashflow Rs.20,000 Term Insurance Plan 1 Term Insurance plan with Rs.75 lakh of life cover. Emergency Fund Rs.3 lakhs in savings account Mutual Funds 3 Equity Diversified funds, 2 Debt funds, 1 ELSS Fund & 1 Gold ETF PPF Rs.50,000 / year -Mr. Rajesh Kumar has adequate life cover of Rs.75 lakhs but the only problem is that, he has only one term life insurance plan so after his retirement if he wants to reduce the life cover, he cant. -Always divide your life cover in 2-3 term insurance plans so that on your retirement you can discontinue 1 or 2 term plans and reduce your life cover as well as annual premiums. -The advantage of dividing life cover between 2-3 term insurance plans is that, when your dependents become financially free and you become liability free, you can reduce the life cover and annual premiums by discontinuing 1-2 term plans.
-After 2007, many people started thinking that Gold is better than Equity. But this is the biggest mistake. Gold has never outperformed the equity in past 300 years all around the world. -Never invest more than 10% of your portfolio net worth in Gold. -Gold is not to build wealth. It just beats the inflation very well. Equity is the only asset class which has given highest returns than any other asset class & its best asset class to build wealth & beat inflation and tax.
66. Model Portfolios of Intelligent Indian Investors The Optimally Diversified Most Powerful Portfolios
Following are the Top 5 Model portfolios of Intelligent Indian investors in various age groups. Remember that, Financial Planning is to make your life simple and easy. You really dont need complicated financial products to do successful financial planning. Following simple financial products are most effective to build most powerful wealth building portfolios. Avoid Following Financial Products Anyhow 1. 2. 3. 4. 5. 6. 7. Term Insurance Mutual Funds (Equity & Debt) PPF Bank FDs & Government Bonds Gold Health Insurance Real Estate 1. 2. 3. 4. 5. 6. 7. 8. Credit cards ULIPs Pension Plans Endowment Plans Money back Plans Child Future Plans Any Insurance cum Investment Products Direct equity investing (If you blindly invest in it after following the advise of your broker/friend/relative)
Portfolio: 1 Age Group 20 to 30 (College going, Just Started Earning & Without Any Dependents)
Name: Sandip Age: 26 Years Occupation: Software Engineer Term Insurance N.A. (As in this age group you dont have any Monthly Income (Salary): Rs.30,000 / month dependents on you so no need of term Insurance) Monthly Expenses: Rs.10,000 Monthly Cashflow: Rs.20,000 Mutual Funds Portfolio [Monthly SIP Rs.20,000 divided into 4k, 6k & Annual Salary: Rs.3,60,000 10k in each of the following funds] Total Debt: NIL
Emergency Fund Rs.50,000 in Bank Savings Account. 1. 2. 3. Franklin India Bluechip Fund (Large cap Fund) - 20% Quantum Long Term Equity Fund (Multi cap Fund) 30% HDFC Midcap Opportunities Fund (Mid & Small Cap Fund) 50%
Asset Allocation Equity: 100% Debt: 0% Gold: 0% Real Estate: 0% -Just 3 equity funds are enough to achieve optimal diversification -No need to invest in debt/fixed income instruments at all in your 20s. -No need to have any term insurance plan if your age is young (20s), you are single and you dont have any dependents.
[ Note: All of the above funds are 5 star rated funds according to Valueresearchonline.com as on Jan. 2011] PPF Rs. 5000 per year. Even if you are not going to invest large amount in PPF, it is better to open PPF account as early as possible to keep in mind the future. After 1012 years, you can start investing in it and than in just 4-5 years you will have Tax-free maturity of your money.
Mutual Funds Portfolio [65% in Equity & 30% in Debt & 5% in Gold] Equity Funds Four 5 star rated (According to Valueresearchonline.com) Equity Diversified Mutual Funds 2 Largecap & 2 Mid cap funds 60:40 allocation Debt Funds 2 Debt Funds (5 star rated) ELSS 1 Tax Saving Fund (5 star rated) 1 Gold ETF PPF Rs.70,000 / annum investment in PPF to save tax under section 80C. Health Insurance Family Floater Plan
Mutual Funds Portfolio [50% in Equity & 40% in Debt & 10% in Gold] Equity Funds Three 5 star rated (According to Valueresearchonline.com) Equity Diversified Mutual Funds 2 Largecap & 1 Mid cap funds 60:40 allocation Debt Funds 2 Debt Funds (5 star rated) ELSS 1 Tax Saving Fund (5 star rated) Gold ETF Reliance Gold ETF PPF Rs.30,000 / annum investment in PPF to save tax under section 80C. Health Insurance Family Floater Plan
Mutual Funds Portfolio [0% in Equity & 100% in Debt ] Equity Funds NIL Debt Funds 4 Debt Funds (5 star rated) ELSS 1 Tax Saving Fund (5 star rated) Health Insurance Senior Citizens Health Insurance Plan
Break Time
Know the Difference between Assets & Liabilities
Many parents ask me that, which is the best personal finance advise that you would like to give to our children? Well, its only one. Teach your Children the Difference between Assets & Liabilities, Buy Assets & Stay away from Liabilities Assets: means anything that appreciates in its value over the time & put money into your pocket (Cashflow). Examples: Stocks, bonds, gold, real estate, mutual funds, businesses, art, coins, web propertiesetc.. Liability: means anything that starts loosing its value from the day you buy it & takes money away from your pocket. Examples: Car, Luxurious automobiles, Watches, Club memberships, expensive mobile phones, clothes, electronics, credit cards, personal loans & other high status symbols items.
The following section is specifically for NRIs or people who are planning to become NRIs. In this section, I have given very important information about financial planning for NRIs in very COMPREHENSIVE manner such as which accounts they should open?, in which Indian Financial products & Asset classes they can invest, which are the financial products in which they cant invest and various Tips, Dos & Don'ts for NRIs while investing in India.
-Both the accounts can be opened jointly with NRI & both are the Rupee accounts. -Power of attorney holder cant open NRE or NRO accounts. However, power of attorney can operate the account. -Nomination facility is available in both the accounts. -When the NRI returns to India, both the accounts will be converted into resident account. -It is possible to transfer funds from NRE to NRO account. But the reverse is not possible.
Which Asset classes NRIs cant invest? Government of India (GOI) Bonds PPF (Public Provident Fund) Senior Citizen Saving Schemes Post-office saving schemes (MIS, KVP, NSC, Recurring deposit scheme & Time deposit scheme) US origin mutual funds like HSBC. Fidelity & Templeton
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There is no upper limit of investing in the above assets. NRI can invest as much money as he/she wants.
If and when the accounts office comes to know of the anomaly, the deposit will be returned to the investor, without any interest.
This is a Joke (Fake Bio). Please dont take it seriously. If you want to read my Real Bio than go to the next page. On the next page, you will find everything about me (And thats REAL BIO.!!! ;)
Real Bio
Hiii, I am Asav Patel, Personal Finance Blogger from Ahmedabad, Gujarat, India. I born on 7th Jan 1983, Sunshine Capricorn; Moonshine Libra. Basically I am a doctor (Ophthalmologist) but I found my Passion in Personal Finance, Investments & Entrepreneurship & thats why I started a personal finance blog MyJourneyToBillionaireClub.com in March 2008 also known as MJ2BC. The Blog started purely out of my passion as a hobby to teach people personal finance & spread the real financial awareness all around the world. But ultimately it turned out to be a Mega Success Online Business. Today the blog receives literally Millions of visitors every year from India & all around the world & its Indias leading Personal Finance Blog. In June 2010, I launched a Personal Finance Forum Investta.com so that people from India & all around the world can discuss, share & solve their financial problems Spreading the Financial Awareness all across the world is the basic spiritual mission of MJ2BC & Investta. Its me, Asav Patel, Ophthalmologist, Personal Finance Blogger & the founder of MyJourneyToBillionaireClub.com & Investta.com And yes, thats my Real Photo & Real Bio!!! No Kidding!!! I am not any gold medalist from any economics school nor I am any Certified Financial Planner (CFP). I am just like you who started MJ2BC & Investta out of my passion to teach personal finance & spread financial awareness.
About MyJourneyToBillionaireClub.com
MyJourneyToBillionaireClub.com also known as MJ2BC is a personal finance blog which started as my passion to teach personal finance & spread financial awareness in India & all around the world. In March 2008, when I first time launched this blog, many people told me that, such kind of things dont work. Because nobody in India is interested to learn personal finance. But well, Today the readers of MJ2BC have proved everything wrong. Today MJ2BC receives millions of visitors every year from all around the world. This shows that, Indians are willing to learn money & personal finance. This shows that, Indians are willing to solve their financial problems. Many of you may not know that How I started MJ2BC? Well, I started it from my home only on 25th March 2008 & after that in May 2008, I joined my Post-graduate course in MS-Ophthalmology at D.Y. Patil Hospital, Kolhapur, Maharashtra, India. And since then up to May 2011, I have run this blog through my hostel room. I used to write 6-8 hours a day during the initial 3 years of this blog.
Thats my notebook in which I write down the future articles titles for my readers. My Laptop on my study table in my Hostel room
About Investta.com
Investta.com is a personal finance discussion forum which is also just like MJ2BC born out of my Passion to teach personal finance & spread financial awareness all around the world. I launched this forum in June 2010. You can discuss & share your personal finance & financial planning problems, mistakes & knowledge on Investta anytime for the benefit of other people around the world. I am full time available on Investta.com & only thing I want to tell you about Investta is, just visit Investta.com not only to discuss & learn personal finance and financial planning but to see the PASSION of Investta forum members. You can ask me anything related to financial planning, personal finance & money on Investta & I will be more than happy to discuss & solve all of your queries. Be the Active member of Investta.com and discuss anything about personal finance, make money online, businesses, entrepreneurship & Investing. Share your knowledge, experience & mistakes about money & finance on Investta and help other people in India and around the world to solve their financial problems.
Thats me, Asav Patel, The Founder of Investta.com , A Personal Finance Forum & MJ2BC, Indias leading Personal Finance Blog. Visit Investta to discuss & solve your financial problems & to see the passion of Investta forum members.
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Give your Feedback / Suggestions: So Finally, If you want to give any kind of feedback (Positive & Negative) and suggestions about this eBook than you can directly contact me on my personal e-mail address asav4u@gmail.com Your suggestions & feedback is very important to improve the quality of this eBook. Discuss and Solve Your Financial Problems & Queries: However, if you have any query about financial planning / personal finance that is still in your mind and didnt solve after reading this eBook than the best way is to put your this query in detail on my Forum Investta.com I am full time available on Investta to discuss & solve your financial problems. So feel free to ask & discuss any of your financial problem/query on Investta.com
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