MONEY NEWS ONLINE
Curated news items for a quick read
MISTAKES THAT IMPACT RETIREMENT PLANNING
Top Life Insurance mistakes people make
IMO, the topmost mistake is to combine life insurance with other financial goals, and treat the life cover as a ‘bonus’. Life insurance is an income replacement for the family, in case an untoward incident happens. Let it remain sacrosanct to the extent of the envisaged amount.
Letting lifestyle inflation costs impact retirement planning
Lifestyle costs are increasing at a rate higher than the inflation rate of 6-7%. Most of us are addicted to certain items or activities, or find it socially embarrassing to withdraw from a certain event. It leads to an inordinate increase in lifestyle costs, if we do not rein those in time.
Exiting mutual funds without consulting a financial planner
There are number of factors to be considered before exiting a mutual fund.
- Change of fund manager
- Change in investing strategies or sectors targeted by the MF
- Impact on long-term financial goals
It makes sense not to use a dip in the stock market, or unforeseen needs as the reason to exit a mutual fund investment.
HOW TECH IMPACTS CONSUMER OF FINANCIAL PRODUCTS
How will Central Bank Digital Currency impact financial transactions in the country
Central Bank Digital Currency is being embraced worldwide by the big players, owing to the sovereign sanction that it carries.
Payments and other transactions on this platform cuts through several layers of connectivity, and becomes amazingly fast.
It may not pose a threat to bank deposits, as CBDC is not an interest-earning product. Yet, payment operators have a lot to fear.
You are being targeted
Marketing communication has become increasingly personalised. All because data is the new oil.
AI professionals have been embedded into different verticals of financial institutions to help them understand the business, and then apply algorithms to create a personalised experience for every user of financial products and services.
Do you stand to gain or lose?
Balancing financial inclusion and security for financial inclusion
The entire financial system in India is geared for last mile connectivity in the last seven years. The challenge is to manage security and avert frauds with increased levels of digital transactions.
Tech gets those on the periphery into the whirlpool of connectivity and inter-operability, but also exposes them and many more to being duped by tech-savvy fraudsters.
HEALTH INSURANCE TODAY
Common health insurance mistakes people make
Do you give incorrect information for small benefits?
What are the errors which can lead to non-payment or less payment by insurance companies in times of need?
LIC launches Aarogya Rakshak
LIC launches a new health cover – AAROGYA RAKSHA
While it covers a limited number of diseases, it offers ambulance and health check-up benefits. It offers a lump sum amount irrespective of actual medical expenses.
It is available on individual as well as family floater basis.
Sanaa Health Insurance makes health insurance easier
Sana Health Insurance is a start-up which lists around 150 health insurance policies on its site.
It makes the task of comparison and buying easier.
Deepak Parekh asks IRDAI to allow insurers to sell pension and health policies
Distribution networks play a key role in penetration of markets.
There is no denying the fact that population segments in remote and underprivileged sections need health insurance and pension plans more than ever?
Will IRDAI allow life insurers to sell health insurance?
LET’S TALK ABOUT LOANS
Are you considering a Covid Loan?
Banks are providing personal loans to tide over illness – the kind of emergency expenses people face in pandemic times.
Best interest rates on gold loans
Gold loans remain the quickest way to raise money in times of need. But are you aware of the interest load it brings on your future finance?
Where do you find the best home loans?
Check out the rates of interest offered by banks, for home loans below Rs.30 lakhs.
Are you the guarantor on a loan?
Have you wondered why your credit score is low, despite never having defaulted on a payment?
Did you stand as guarantor on a loan?
IS YOUR FINANCIAL PLAN ON THE RIGHT TRACK
Have you got your financial plan audited?
Yes. There are firms and practitioners specialising in finding the gaps in your financial plan.
Are you investing a part of your money in non-traditional products?
Cryptocurrency showed dreams of unusually high returns in a short time. Many entered the fray to make a quick buck.
However, governmental action in many countries is changing trends.
Can you suffer a loss in bonds?
Bonds remain the most popular product offered to retired people, being considered low-risk.
However yields do fluctuate, and the mechanism is not well-understood by the layperson.
Do you have adequate life insurance?
The pandemic has brought a renewed focus on life insurance. Term plans are more popular than they have ever been before.
At the same time, insurance coupled with investment products is being discouraged.
BITS & BYTES ON BITCOIN
Cryptocurrency – the devil lies in the definition
The major fear is that private cryptocurrency will be banned. What exactly is private cryptocurrency?
Are Bitcoin and Ethereum insignificant enough to be banned without causing ripples in the economy?
Beginner’s guide for investment in bitcoins
Asset allocation matters more than anything else
Asset allocation is another mantra, after Power of Compounding, meant to help you lead a happy retired life. Retirement planning gets more important than ever, as the likelihood of early retirement increases.
The author classifies retirement planning into four stages:
- Jet-setting, Go-getter Stage (below 40)
- Settled Down Stage (40-50 years)
- Reflection Stage (50-60 years)
- New Beginning (Beyond 60 years)
Another classification to deal with after our Grihasthashram, Vanaprasthashram and SanyasAshram stages 🙂
When should estate planning strategies start?
Do you think estate planning starts at 40+, after a death or divorce or parenting crisis?
You can live in peace, if you kick off the process early?
If you need more clarity, Deepak Balani, an estate planning lawyer is willing to answer one question, and reward you for asking.