Life Begins At Retirement: September 2019

Sunday, September 29, 2019

IRCTC IPO

IRCTC IPO sees strong demand: Key things to know before you invest https://www.livemint.com/market/ipo/irctc-ipo-share-price-lot-size-retail-portion-allotment-listing-date-other-details-11569771438193.html

Friday, September 27, 2019

Market Updates::: Good Evening. There are lot of negative developments happening in Global Equity Markets. Most of the economy globally have been seeing *yield curve inversion*. This generally happens when bond yields fall down on account of falling interest rates. ++++ US- China trade war is another negative development +++ Germany which is the industrial town of Europe is witnessing recession +++ There is news that *Industrial Goods Production in China* has collapsed & this in turn affects the economy/ growth of a nation +++ Globally Companies are trimming their profits or has been seeing contraction in global profits +++ Oil prices soaring high on account of several reasons which is generally not good +++ BREXIT issue +++ Argentina Default -- debt & inflation issues +++ Downgrading Ford Credit Rating +++ Thomas Cook Bankruptcy In spite of all these negative developments, Risky Assets like stock markets have gone to all time high, global stocks have delivered more than 20% , commodities more than 15% etc. The basic reason is *there is liquidity coming into the markets*. Hence the global markets are moving in spite of the negative developments. In India on account of US -China Trade War, we have been seeing volatility in the markets.

Thursday, September 26, 2019

Planning for Retirement and Planning at Retirement

Tuesday, September 24, 2019

Plan Investment With A, Goal In Mind

*Good Morning Money!* *Q.* I don't have any goals as such. My children are all married and settled. I earn enough rent income (inflation adjusted, you can say so) to take care of my expenses. I have enough financial assets to take care of any emergency. Will you still insist that I should have financial goals? *A.* Yes, I will still insist you to have goals. I know I am sounding little impractical and crazy. But I do have my reasons behind saying so. Let me explain. Goals need not be popular ones, like child's higher education, world tour or retirement planning. It could be as weiredly named like - "Earning post tax 10% CAGR from Portfolio ABC in next 7 years' time". Ok, how will this help? This will help you to track and review the performances of your investments with much more precision. Now you know what to expect from what. This will also help you to know when you're supposed to redeem an investment. This gives purpose behind making investments. This approach finally brings some orderliness in otherwise chaotic portfolios. A goal is not a goal without a target and timeline. So go ahead, name your goal and put a tag on your investment.

Monday, September 23, 2019

Market Updates

Market Updates::: Good evening Recently the Finance Minister had declared lowering of Corporate Tax Rates which could thereby benefit Corporates. In this regard there was some concern regarding the slippage or deficit of 1.45 lakh crores. As per leading economist, the timing of declaration on deduction of tax was perfect. In fact many of the developing nations including United States have done it. Now US- China trade war is at its peak and in fact India's decision to lower tax rates is a good signal for corporates abroad particularly in USA. It also sends signals about the ease of doing business in India easily. In coming days, there is expectation that many US based companies might shift their base from China to India. Secondly Indian economy which is currently consumption based is slowly changing to Investment based economy. Consumption based economy is generally temporary & country's GDP generally multiplies in case of investment based economy. Overall it's good for economy & markets in the long run.

Sunday, September 22, 2019

Review Your Investments

Minimum Alternate Tax-- MAT

*Good Morning Money!* *Q.* I recently heard about reduction in Corporate Tax and Minimum Alternate Tax (MAT). What is this MAT actually? *A.* There are companies which end up paying very little or no tax even though they make significant gains. This is because they avail many exemptions, deductions and incentives. To plug this loophole, govt. makes it mandatory that every company must pay at least Minimum Alternate Tax (MAT) under section 115JB. Any company that pays MAT, if the tax paid is more than what is accrued, then the excess amount is credited back as Tax Credit to the company. Suppose a company books a profit of Rs.10 lac. After claiming all applicable deductions, exemptions and depreciation, the gross taxable income comes out to be Rs.5 lac. Income tax applicable in this case will be = 30%^ of Rs.5 lac = Rs.1,50,000 However, applicable MAT = 18.5%* of Rs.10 lac = Rs. 1,85,000. So excess tax payable will be Rs.1,85,000 – Rs. 1,50,000 = Rs.35,000. This excess Rs.35,000 can be carried forward and set-off against regular tax payable in future. ^This has been reduced to 22% *This has been reduced to 15% as par recent announcement.

Retirement Should Be A Statement

Retirement is a guest you can ignore but cannot avoid it Retirement is for all of us. It's a question of time. Retirement should not be a State but a Statement. RETIRE:::Recreate, Enjoy, Travel, Independence, Rejuvenate, Energize.

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7 out of 10 Indians expect their children to support them in their retirement

7 out of 10 Indians expect their children to support them in their retirement: Survey While 76% of working age people in India expect a comfortable retirement, only 33% are putting aside money to fund it, finds the HSBC Future of Retirement study. ET Bureau|Sep 17, 2018, 06.30 AM IST https://economictimes.indiatimes.com/wealth/personal-finance-news/7-out-of-10-indians-expect-their-children-to-support-them-in-their-retirement-survey/articleshow/65811259.cms?from=mdr

How Much Money You Need To Retire

How Much Money You Need to Retire in India BY WILLIAM MCGEE Updated Jul 19, 2019 https://www.investopedia.com/articles/personal-finance/111315/how-much-money-do-you-need-retire-india.asp

6 Surprising Facts About Retirement

6 Surprising Facts About Retirement BY DANIEL KURT Updated Jun 25, 2019 Americans are living longer than ever before, resulting in lengthy retirements. But if you assume most people are saving more in order to prepare for their long-term needs, you’d be mistaken. https://www.investopedia.com/articles/retirement/110116/6-surprising-facts-about-retirement.asp

The reality of India's elderly people

Neglect and abuse: The reality of India's elderly people We often assume that our greatest dangers are from strangers on dark streets or from violent men who might break into our houses. The sad truth is that the highest perils of brutal and persistent violence lurk within the intimate spaces of our homes, from those to whom we are closest. Little illustrates this with more poignancy and immediacy than a recent 12-city study by Helpage India. Its stunning finding is that every second elderly person who its researchers spoke to testified to suffering abuse within their families. COLUMNS Updated: Mar 02, 2015 23:00 IST-----Harsh Mander https://www.hindustantimes.com/columns/neglect-and-abuse-the-reality-of-india-s-elderly-people/story-2QYQf5DNGne1yVNuMHxcpL.html

Save Tax Under ELSS Mutual Funds

Reduction in Corporate Tax

FM’s measures infuse ‘josh’ among equity investors Sridhar Kumar Sahu Sep 20, 2019 The government today announced reduction in corporate tax and withdrawal of the enhanced surcharge proposed in July 2019 Budget https://cafemutual.com/news/industry/17369-fms-measures-infuse-josh-among-equity-investors?__sta=vhg.uosvpxYIBmsfjlc%7CJBTH&__stm_medium=email&__stm_source=smartech

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