Entries for category "Financial Planning"

When starting to invest, one of the most fundamental decisions revolves around choosing between active and passive funds. While on the surface, both appear similar pooling money from multiple investors into securities, they differ profoundly in their goals, costs, risks, and outcomes.

Choosing between active and passive funds is quite an important task for investors with a long-term outlook, as this decision can significantly impact their financial future. This in-depth …

Employee Stock Ownership Plans (ESOPs) offer a unique way for employees to gain a stake in their companies at a favorable cost, serving as a valuable addition to compensation packages. However, their true potential lies in understanding their tax implications and aligning them with financial goals. From managing domestic and international taxation to leveraging benefits like Section 54F for capital gains exemption, effective ESOP planning can help reduce tax liabilities and optimize financial outcomes. By strategically timing the exercise and sale of ESOPs and diversifying proceeds into other investments, employees can transform this benefit into a cornerstone of their long-term financial security and growth.

Health insurance is a fundamental tool for promoting better well-being. It empowers individuals to access healthcare services, preventive measures, and treatments without the burden of overwhelming financial costs. This not only ensures timely medical care but also encourages regular check-ups and early intervention, contributing to improved overall health. With the security of health insurance, people are more likely to seek medical advice, follow prescribed treatments, and manage chronic conditions effectively. Thus, it plays a crucial role in enhancing physical and mental well-being, providing a safety net for individuals and families to lead healthier lives.

In these unprecedented times, we would like to summarise the steps which one can take if he/she knows a family who is impacted by Covid.

Investing into a volatile asset class like equity without a proper exit strategy is akin to entering into a Chakravyuh without knowing how to come out of it. A robust Goal based exit framework ensures a very high probability of achieving the target amount for a given financial goal. Sudden market crash and black swan events like "Covid-19" may seriously jeopardize your financial journey. A robust Goal based exit framework is your insurance against such unpredictable events.