Posts tagged: financial advisor

Term and insurance and tax deductions -What you should know

insurance and taxWe all know that saving money is an art, but saving money on tax is a bigger art. Well, we all are aware of different tax rules associated with our daily life. And who doesn’t want to save money on tax? We basically evaluate all our expenses and savings and try further to save money on tax. One of the most common and highly effective tools associated with tax saving is the investment in life insurance policy. Yes, in India, life insurance is eligible for tax deductions under Section 80C. But do you really think it is simple, there are many terms and conditions associated with the same.

Tax rules you must know

1. When it comes to the tax deduction, there is a certain limit associated with the same. For all those policies which were issued on or before March 31, 2012, the maximum premium amount that will be eligible for tax deductions will be around 20% of the total sum assured. Anything in excess to this will not be liable for any deduction under Section 80C.

2. The maximum premium that is eligible for deduction for the plans that are issued on or after April 1, 2012, will get 10% of the total sum assured as the tax deduction. For example, if you invest in an insurance plan and that too which carries the sum assured of Rs 10 lakhs. Keep in mind that the annual premium which will be eligible for tax deductions would be around 1 lakh cannot be claimed for tax benefits. However, if the person is suffering from an illness that is listed under Section 80DDB or has a disability listed under Section 80U, an additional deduction in premium of around 5% is permitted. Therefore, in such cases, the maximum premium which will be eligible for deduction under Section 80C will be 15%

3. Premium amount that is paid someone else like other than children, spouse and self will not be liable for deductions.

4. In case of maturity, if an individual is fine with all the above-stated criteria, the maturity benefits stand exempted from tax. But if in the case where the annual premium exceeds the percentage limit which is mentioned above, the tax will be levied in accordance with the income tax slab

5. In case of demise of the insured person, the death benefits are not taxable.

Moreover, the good thing is that the term insurance plan which is a strong form of life insurance is not much affected with the same. And, in today’s market, there is the multiple and wide range of such plans is available in the market. Such effective plans carry a sum assured which is much higher than the annual premium. So investing in the same is not a big deal and it always comes out with a wider range of benefits.

However, it is important for you to understand that the concept can be different with single premium policies. As a part of these policies the sum assured is not high just to improve the returns. Therefore the premium amount associated with the same fall low, creating not enough percentage difference between the sum assured and the premium.

Under such policies, the sum assured will not be more than 1.5 times the premium amount. As a result single premium plans will not be liable for the tax deduction.

It is true that a life insurance plan demands a long-term commitment that may last for a couple of years. It is obvious that between the tenure policy you don’t want to discover that you made a huge mistake as your premium will not be liable for tax deductions. Then it will become quite late. Even if you want to cancel the policy then you have to pay unexpected charges.

So it is important for you to pay attention to the tax laws, study the same properly before investing in any insurance plan. Term insurance plan comparison is a great choice if you are planning to invest in the term plan. It will provide the needful financial cover to your family in your absence and will be liable for tax deductions. For making an investment in a term insurance plan, you can take help of which is a great platform and assisting customers in choosing the right plan for them.

Are House Prices Likely To Go Down?

balance house pricesWhenever you hear people talk about the housing market it’s all doom and gloom. Prices have been rising consistently for years and there’s a serious fear that a whole generation of young people isn’t ever going to be able to afford a house. Last year was set to be a positive one for housing and an increase in house building was predicted, but the reality is, that didn’t happen. Things did improve a little but not as much as we hoped they would. So, it doesn’t look good at the moment and it feels like it’s never going to get better, but is that really true? Nobody knows for sure but these are some of the major predictions from experts.

Prices Will Rise, But Not As Much

This is good news and bad news. Prices rose by a significant amount every month last year, especially in the latter half of the year. Some people predict that trend will continue, but the increases will slow right down. There are a couple of reasons for this prediction. Firstly, unemployment is going down and people are able to afford houses more easily. Demand is stronger and there will be a slight increase in the number of people that are actually buying houses.

Another factor to consider is the number of people opting for alternative housing situations. More people are opting for prefabricated mobile homes, sometimes called mobile homes. These are far cheaper because the components are made separately, shipped over, and constructed on site. The impact of this is minimal but people choosing to go for alternative housing is going to alleviate some of the strain in terms of housing shortage. It also means that houses can be built far more quickly.

On the other hand, real estate as an investment is on the rise so if all of the houses are being bought up by investors, prices could carry on increasing.

This prediction is good news overall because what they’re essentially saying is that, while there won’t be an immediate turnaround in house prices, we’re coming toward the top of the peak and will soon start to see a downturn in prices.

Affordability Will Go Down

Wages are forecasted to grow in some of the larger cities in America which you would think is good news for buying houses, unfortunately it’s not. The amount of homes that are affordable to somebody on a medium income isn’t growing. That means they are unable to access the cities where wages are growing in the first place, so they can’t get the higher wages they need to buy a house. This disparity is one of the biggest problems in the housing market at the moment. Even if house building does increase this year, they aren’t likely to build the affordable housing that is needed to redress that imbalance.

Credit Availability Could Improve

After the crash of 2008, the availability of credit was regulated more strictly in order to avoid the same thing again. However, the new Trump administration has floated plans to roll back a lot of that regulation so banks will be more free to lend money again. It could go one of two ways; either they’ll start lending more freely and people might be able to afford to buy a house, or they may carry on operating the way that they are at the moment.

There’s no telling exactly what will happen with the housing market but these are three of the best theories so far.

Navigating The Financial Struggles That Come With Being Out Of Work

money strugglesAt one point or another, most people have found themselves out of work. Whether it’s because the company that you work for has folded, you’ve lost your job or are on sick leave, being out of work can have a huge impact on your financial health. Whatever the reason that you are out of work, having a small amount of money to live on and no guaranteed monthly income is a daunting and stressful prospect. Luckily for you, we are here to help make the process of living without an income as easy and free of stress as possible. Below are a few handy hacks that should make navigating the financial struggles that come with being out of work easier.

Set a strict budget (and stick to it)

The first, and most important, rule of living when you are out of work is setting a strict budget and sticking to it. The fact is that it’s possible to live on a tiny amount each month, it’s just a case of learning how to be savvy with your funds and not overspend, which is a habit that many of us have got stuck in – spending money when we don’t need to. There are various budgeting apps that can help you to set a budget and ensure it’s stuck to by linking up your bank account to your budgeting list. These apps really are invaluable when it comes to living within your means.

Find alternative solutions for cash flow

Budgeting will help to make living on a small amount easier, but it won’t solve the problem altogether. The fact is that you can’t get by without a livable income, so if you aren’t earning from work, you need to find a way to supplement your income so that you have an alternative cash flow coming in. This could be by doing some freelance work, it could be by taking out a loan from, or it could mean selling a few of your old and unwanted items. The fact is that when times are tight, it’s important to ensure that you have an income stream so that you are able to keep on top of your rent/mortgage payments, your bills, and afford food. That is why finding an alternative cash flow solution is so important.

Research what you’re entitled to

Another option, when it comes to making life easier when times are tight, is to research what help you are entitled to. There is always help available from local authorities; it’s just a case of determining what help you are entitled to. If you are on sick leave, you may also be entitled to pay from your place of work, depending on your role, the time you have been there, and what your contract says. Don’t struggle on without looking at the help that is available, take the time to research what you are entitled to and apply for it. There is no shame in taking help when you are struggling, so it’s worth taking the time to research what you are entitled to.

It’s not easy navigating the financial struggles that come with being out of work, but if you take note of the tips above, you can make the process a little easier and a little less stressful for yourself.

Get An Adult Mindset For Your Finances

finance thinkingSo, you’ve just graduated from college and have moved into your very first apartment. Now what?

Well, now it’s time you wised up to your financial situation and got into an adult mindset when you start thinking about your money situation. This can help you put in place some good financial foundations that can help you set up a secure future for yourself. So, ready to grow up and get adult about your financial situation? Here are some things you need to start to do.

Start Saving

Now that you are out of college and into full-time work, it is important that you try and save as much as you possibly can from your monthly paycheck. It doesn’t matter if you are only able to save a small amount; after all, every little will help and it will certainly add up after a few years! It is important that you have some savings behind you as they can provide you with a security blanket should you ever run into any financial difficulties. If you take a look at, you can see which accounts are the best ones for your money.

Ditch The Debt

As well as saving up some cash, you also need to try and pay off all of your student loans. If you are struggling to manage all your debt right now, you might want to take a look at the tips on to see how you can consolidate your debt to make one easier monthly payment. It’s also worth setting up a direct payment from your monthly paycheck. That way, you can never forget about paying back your loan.

Budget Well

Now that you are an adult in the big wide world, you will have a lot more responsibilities than what you did at college. Make sure you don’t forget about looking after your finances, though, or else they won’t look after you! The best way to do this is to budget. You just need to enter all of your monthly incomings and outgoings into an Excel spreadsheet to see how much money you have left over at the end of each month. This can help your finances stay extremely organized, and you are a lot less likely to be overdrawn one month!

Plan For Retirement

Have you figured out how you will be financially stable during retirement yet? If not, why not?! You don’t have any excuse of not thinking about retirement, even if you are still only very young. In fact, there is more reason for you to think about saving for retirement now as you will have longer to save and make a bigger nest egg. Firstly, you should take out a pension so you have some savings that are specifically for retirement. If possible, set up a separate savings account as well.

Once you adapt to this adult mindset, you will find that your finances get a much needed boost. Good luck with your financial future!

The Best Educational Investments You Can Make

invest to studyIf you look at the best ways to invest your money, many people will recommend investing in your education. The reason is that spending money on your education isn’t just a one-time investment. Adding qualifications to your resume is an investment in yourself and could lead to higher earnings in the future. You’re not buying an asset that could start depreciating or taking a risk on an investment that could end up losing you money. If you want to invest in your education, there are a few smart ways you can do it. Try the following tips to consider your options.

Go to College

There will always be controversy over whether it’s necessary to go to college. Of course, not everyone wants or needs a college education. And some people will say that studying certain subject isn’t going to help you in your career. However, even though it can be expensive, going to college can do a lot for you in the long-term. There are several options to explore if you want to find one that works best for you financially. There’s the choice of going to community college, attending a college in your state, scholarships, or even studying online. Gaining postgraduate qualifications will also often help to boost your career.

Take a Course

Whether or not you choose to attend college, your education doesn’t need to stop once you’re no longer in school. It’s always worth exploring your options for learning new skills and improving your abilities. There are many online courses you can sign up for, but Training Connection believes that classroom learning is best. When you’re learning practical skills like how to use software, it’s useful to have an instructor who can show you how to do something. As well as investing your own money in training, it’s always useful to take advantage of any opportunities you might gain from employers.

Learn About Finances and Investment

Courses both online and offline can teach you about just about anything. You can choose skills that are useful for your career goals. But if you want to make the most of your money, learning about finance and investment is one of the best things you can do. Seek out courses in investing and managing your money if you want a good way to spend money on your education. While you can find free resources, it pays to invest in a more professional and comprehensive course, or perhaps resources like books.

Invest in Your Child’s Future

Your education isn’t the only one worth investing in. If you want another way to spend your money wisely, investing in your child’s future is also a good idea. You can help them out by saving money for their education, whether it’s a college fund or just general savings. You can also help them out when it’s time for them to go to college, perhaps by co-signing loans or simply giving them some financial support.

Education is one of the best things you can invest in because it sets you up for the future. Don’t dismiss the power it can have.