Thoughtful resolutions for NEW YEAR:
1. 30 % of your income should be used for monthly living expenses.
2. 30% of your income should be used for Liabilities repayments, if any.
3. 30% of your income should be SAVED and INVESTED for your future LIVING.
4. 10% of your income should be spared for entertainments, vacations.
5. Six months expenses should be available for emergency fund (should be invested in LIQUID FUND, FD Etc)
6. Home must be registered and loan must be taken on both husband and wife name. (Both can get benefits on Home loan Tax benefits)
7. Buying second house for investment is not advisable (It will fetch you very low return)
8. After 45 years of age, not supposed to enter into any BIG LIABILITIES (Higher education of children and wedding of children will happen when your age is 45 to 50, so plan now for the same.)
9. Have joint saving bank account with spouse.
10. Estate planning is the most important comfort you will provide to your family when you are gone.
11. Regular check on Nominations for all financial instruments if not nominated, do it now.
12. Only in insurance policy, Claims payable to Nominee. In other financial instruments legal heirs certificate is must to get back the settlement.
13. Must have Term Insurance to financially secure future of your dependants.
14. Don’t take any financial investment decisions EMOTIONALLY, and also Avoid last minute tax saving investment decisions, plan well in advance, better to plan from April only.
15. MEDICLAIM is must (in spite of Group mediclaim coverage given at office) (After retirement there is no mediclaim coverage, after 50-55 years of age, it's very tough and costly to enter into mediclaim)
16. For your jewelry LOCKER, Only one lakh is payable by bank, if theft or fire happen at bank. Provided insurance done.
17. Similarly, Government guarantee only one lakh for your FD. (Fixed deposits with Banks upto Rs. 1 lakh only are backed by deposit insurance)
18. Must know all Tax implications. You cannot avoid paying tax. But you can minimize by way of tax planning and investments.
19. All financial documents must be kept safely and keep family members informed of the same.
20. Financial investments must be followed through financial advisor.
21. Review your portfolio at every six months.
22. Investments Should be Goal Based