Benefits of taking a professional help far outweighs the charges you pay. Using the services of an financial advisor is a smart move as they have a broader and deeper knowledge of money management than most of us. The four key benefits of working with a professional are: You save money, Gives Clarity about your Financial Journey, Gives more bang for your buck, Reduces overall risk in the portfolio.To know about the benefits in detail, read this blog.
Firstly, investing in these bonds makes sense if you have sold a property and have accrued long-term capital gains. Overall, if you invest your gains in the REC Bonds you are not required to pay tax to the government. This is the main reason why one should consider investing in the REC Bonds. This is especially true for high net worth investors, who are in highest tax bracket.
Secondly, considering REC Bonds from a financial planning perspective, it is a low-risk asset class, but still, an investor with a high-risk profile can invest in them because the returns are tax-free after 3 years. Thus the overall post-tax returns are quite high. This enables an investor to not only earn tax-free income but also ensure the safety of capital.
What can you do to minimize the impact of 10% tax on your Long term capital gains (LTCG)? Though this is a new reality now for most of the long term investors, but being more aware of the possible options can help us reduce the impact. It just requires one to do few things on a periodic basis.
Most of us want to keep our money safe while choosing to invest in our long-term goals like child education and our own retirement. This is done primarily because everyone has told us that investments in equity markets are risky, and we really don’t want to take the risk with our important goals like education and retirement. While it looks like a prudent choice, but unknowingly we are making the wrong choice of investment products, like FDs, NSCs, PPF etc. Let us see three main reasons why in long-term goals, it makes perfect sense to take the risk.