-
The number of exclusions to any insurance policy reaffirms my faith in one truth: Insurance policies are springes to catch woodcocks.0
likes·
-
@atyanand Insurance policies for our lot is just a way to save on taxes. So, doesn’t really matter as of now.0
likes·
0
comments -
@KayB to save tax using insurance is very short term thinking, interest calculations shows, we lose more as compared to IT saved @atyanand0
likes·
0
comments -
@KayB Not even that. PF fills up nearly everything under that Section. Insurance makes sense only if I die, and not my benefit either.
0
likes·
0
comments -
@kv Returns on life insurance just don’t keep pace with inflation or even simple investments like FD, unless you take a huge cover. @KayB0
likes·
0
comments -
@atyanand oh yeah! They fall flat just considering the interest, if we bring in inflation then it’s a whole new low. @KayB0
likes·
0
comments -
@atyanand And insurance is definitely not an investment option. You will get higher returns from an FD. @kv @KayB0
likes·
0
comments -
@pawanrajs But u pay tax on FD interest too. Back to square one. @atyanand @kv0
likes·
0
comments -
@KayB not really, your pay only approx 20% of money made by Interest as Tax, in Insurance you lose money big time. @pawanrajs @atyanand0
likes·
0
comments -
@KayB consider popular TATA AIG policy for 75 years, one loses 30,000 even if he/she survives for 100 years, w/o considering inflation.0
likes·
0
comments -
I think promoting saving and investments by providing tax sops on insurance policies and mutual funds is a bad macroeconomic strategy.0
likes·
0
comments -
Instead, lower the overall tax rate and reduce deductions. Leads to increased tax collections as well as greater incentive to spend or save.0
likes·
0
comments -
@atyanand might be bad economically, but socially government want people to encourage savings. And tax breaks works perfectly for most.0
likes·
0
comments -
With the economy going slow, govt needs to find ways to encourage spending. Providing tax breaks for long-term investments is a bad idea.0
likes·
0
comments -
@kv Also note, you spend 12.3% *every year* as tax on your investment in insurance. Stack up losses, and back to square 0 @KayB @pawanrajs0
likes·
0
comments -
@atyanand are you suggesting better way would be to invest in secondary money markets? W/o proper regulation that can tank too.0
likes·
0
comments -
@kv I’m suggesting ways to increase short-term demand by leaving more disposable cash in people’s hands. Immediate boost to economy.0
likes·
0
comments -
@KayB Yes. But in a slowing economy, demand for illiquid assets falls sharply, coupled with increased barriers to credit. @kv @pawanrajs0
likes·
0
comments -
@atyanand @kv @pawanrajs So on a very broad basis, investment on real estate (specifically, involvin home loan) is the safest/best bet?0
likes·
0
comments -
@KayB it sure is safe bet, better bet would be to just invest in real estate (w/o construction) and keep flipping it. @atyanand @pawanrajs0
likes·
0
comments -
@kv Realestate for 10+ yrs horizon, FD for 3-5 yr horizon, and liquidity thru Gold+index fund+cash. Not bad. @soumna @atyanand @KayB0
likes·
0
comments -
@kv Sure
. I haven’t either tbh. But studies show buy+hold a benchmark fund over 5+ years rarely goes wrong. @soumna @atyanand @KayB0
likes·
0
comments -
@atyanand @KayB @pawanrajs @kv But on a serious note i guess an ideal saving plan would be a combination of Real estate/ Gold/ Shares/FD.0
likes·
0
comments -
@soumna correct only issue could be shares. Don’t do daily trading, long investment and diverse portfolio is key @atyanand @KayB @pawanrajs0
likes·
0
comments -
@pawanrajs: @atyanand ok i lost u guys at index fund. What is that ?@kv @KayB0
likes·
0
comments -
@soumna Index Funds is portfolio of shares, same as what Index (BSE or NSE) consists of, so your fortunes are pegged to index. 0
likes·
0
comments -
@soumna Index fund is a security that derives its price from an index. It’s price changes as the index changes @atyanand @kv @KayB0
likes·
0
comments -
@soumna As an example, a fund marked to NSE sensex will be priced @ 500 when sensex = 5000, 503.5 when sensex = 5035 @atyanand @kv @KayB0
likes·
0
comments
Share and Enjoy:
This entry was posted on September 25, 2012, 2:36 pm and is filed under Uncategorized. You can follow any responses to this entry through RSS 2.0. You can leave a response, or trackback from your own site.
comments