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Build Your Career ….Build a Corpus…..Then Plan for baby

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The hectic pressure and limitless aspirations make the man and woman busy in money making to lead their regular life. The man and Women are the two chambers of the family who dreamt of various goals to acquire. Nowadays the matchmaking is made on the basis whether the partner earning a good lump sum amount either it is a groom or bride. The groom wants a well educated and earning bride and he gets it too. Both were happily married leading a good package of life. Work to home..home to Work and vise versa. They had a child then suddenly the whole routine of women changes into a collapsed state. Shortage of Time, lack of self and health care and it is difficult for any mother to leave her infant and go to work. Then here the graph earning of working women falls down which reflects badly in every one of the Family.

The sudden coming of an infant in the life results into the change of single economy income from double economy income which becomes a major disaster in both the life. With the new economic prosperity, many highly qualified women are making choice to not go to work. The creator designed the women in a way that she can solve every matter in a tactful and delicate manner for which a man needs a group meeting, personal assistants and so on. The standards of working are set by the Men society which becomes tougher for women to balance the equilibrium between their work and house chaos. However, the growing and modernizing society have options for every problem gives many options for women to balance herself but it doesn’t satisfy the young mother who was running out always in thought of her Infant at home.

The Final Decision taken by the women was to work from Home but the erratic work hours the inability to respond to emails and calls instantly and the rigorous of coordination while working alone setbacks the career of the women. Many women thus choose to quit or take a long break which results in poor personal finance implications.

The family needs to prepare to switch to a single income depending on man pressuring him for each need. The family pushed into the terrific state of lacking finance without pre-planning what it will conclude to. The daily wage workers return to work too soon after delivering the child since their house can’t bear the financial loss of income.

The sudden adjustment in the limited single income becomes stressful to decide or differentiate between mandatory expense and discretionary expense. The new parents get confused about which expense they contribute because while earning the discretionary expense were boosting to become a mandatory expense. The partners were enjoying hanging out around etc which ended up because of the loss of income. It is very important for them to agree on what is essential and what is not. The single income should cover these and leave a surplus for emergencies.

The baby comes with new ala carte packages of expenses and unexpectedly the single income fails to satisfy and many times results in debts. Young parents discover to their dismay that insurance does not cover the frequent trips to the pediatrician. Some parents, unfortunately, have to deal with special medical situations .the Insurance policies for neonatal and Infant policies may not cover all these expenses which entail large additional expenses.

The young household needs time to prepare adequately before having a child. The women need to build a corpus from her income so that she can draw on it when she takes a break and she had to work long and hard so that she can return back to her work after a break. She has to boost up her income and savings for the unexpected expenses which will be prevailed after the arrival of the infant. The man would additionally have to ensure that he has achieved stability in his career to not put the new single income family at any risk of inadequate or irregular income.

The Insurance and investments need of the households also multiply. Adequate insurance cover is a must . It is important to cover the needs of the households for a period until they have enough assets to fall back on. The term insurance that kicks in and supports the family in full should have been taken and paid before the family plans for the child. So is the case for adequate and comprehensive medical insurance.

The arrival of a child becomes a responsibility of the young couples to plan about their future and what they could do to secure and nurture it. Many of them say about the merits of living for the present and dismissing the financial planning are too conservative and cautious. But the major arrival of a child can jolt the careers, modify priorities and make Substantial changes to incomes and is, therefore, a classic example of a goal that needs advance planning and adequate action.

 

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WEALTH

30 Plus age Women should Invest Earlier For Future Finance Security

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There are no easy ways to generate the money we have to work hard and be focused on the goal always. There are no shortcuts to generate income. You not only need to get started as early as possible but you also have to be prepared for continuous and monitored investing.

The best time to start our investment once you take your first job right from your 20’s that’s the time for new beginnings. Many used to start building their asset portfolios in their 30’s.

The late 30’s burry one with more responsibilities that too for women she owes various responsibilities towards family, parenting, etc which hike’s up to the financial responsibilities and your prime focus is to build a comfortable investment plan. Especially it is important for women to ensure her financial security for herself and her loved ones.

There are some investments options for a working woman in her 30’s.

Public Provident Fund is one of the best retirement investment schemes which offer complete tax-free benefits as well as steady interest income. In this scheme, one can deposit up to Rs.1.5 lakh a year and earn an interest rate of 8%. However, the interest keeps compounding annually and credited at the end of every year. It doesn’t provide long-term stability and decent returns after a span of 15 years.

Another tax efficient long term investment option is the National Pension Scheme a concoction of equity, fixed deposits, corporate bonds, liquid funds, and government bonds. It offers completely tax-free benefits under section 80 C of the Income Tax Act to the tune of Rs.1.5 Lakh plus you can claim an additional tax-free deduction up to Rs 50,000 under Section CCD (1B).

Buying Mutual Funds are another method of investment. The equity-linked investment plan schemes a diversified equity mutual fund product that will allow tax saving under section 80c of the Income Tax Act.

In the last years, the average return from the top 10 ELSS stands at almost 20% so even the introduction of 10% long-term capital gains (LTCG) tax on equity earnings does not dent its appeal.

Life Insurance means protection against the risks in life. These risks also exist in a woman’s life, sometimes even more than a man’s life.

According to the data Insurance Regulatory and Development Authority of India show that only 90 lakh women bought life insurance policy in 2017-18 while 1.91 crore policies were purchased by men in the same period. So women should invest more on Life insurance so that she can manage her lateral financial stability.

As per the studies, the women not only live longer than man but they also use more medical services due to a greater likelihood of chronic disease and disability apart from reproduction. Expenses for normal delivery are about between Rs 15,000 and Rs 1.5 lakh, without accounting for unexpected occurrences that may need urgent medical intervention and, hence, further expenditure. Without a health policy in place, such out-of-pocket expenses can do a number on a family’s budget.

According to the analyst, the portfolio of a 35-year-old woman ought to be composed of 65% of equity funds and 35%%  should be in debt, insurance, and cash. But even conservative investors should not go below the 60% equity allocation mark in order to maximize returns at an age when you are able to afford more risk. The older you get, the safer your portfolio will have to be.

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Insurance with Mutual Fund SIPs is not a good idea

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Mutual Fund aims to come back by offering an insurance plan with mutual fund schemes. As the flow of the equity fund has been slowing, fund houses are restoring to the free insurance sale pitch to attract more investors. In a plain vanilla SIP, we have to invest a sum of money every month and the fund house will invest the money in a bond or equity market. But in insurance with SIP package, you get a life cover that is bundled with your investment.if the unit-holder dies the nominee get the sum assured.
The insurance cover increase during the 3 years of SIP investment, if you continue the SIP for three consecutive years it is actually yours. The hope of the mutual fund industry is that this free insurance offer would encourage SIP investors to opt for a longer tenor. and the SIP insurance scheme also acts as a means to attract more investors. Before enrolling for a SIP that comes with an insurance cover, check the extent of cover you’ll get. You might think the cover is for free since fund houses are not charging any extra from you. Your monthly SIP contribution is the thing you pay every month. SIPs that come bundled with the insurance feature impose higher exit loads up to 2% as opposed to the normal 1% for withdrawals made within a year. Look at the historical performance of a scheme versus its own benchmark index and peers, asset allocation, your own risk profile and your schemes and then decide which scheme you should invest in”.
The risk with an insurance cover of this kind has the chance of the cover being discontinued due to many reasons. If you do not continue the SIP for a minimum 3-year or for a tenure you have opted for in certain cases, the insurance cover may be void. And also any partial or full withdrawal and even switch out of mutual fund scheme before the completion of three years would make the insurance cover cease.
If the product is comparable with peers and the scheme is offering an additional insurance cover which fits your objective then there is no harm in opting for the insurance cover. But if the insurance cover should not be a decisive factor.
The scheme gets defeated if the scheme does not perform in the market. The insurance offered is nominal and does not offer much protection except as an additional cover, which is not sufficient by itself. So consider insurance as a bonus and it is not a reason for it to invest in a scheme.

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WEALTH

Money & relationships: Your money behaviour can affect your children

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Usually, children become the reason for the worst collateral damage between the spouses. Being a soft target they are treated as a punching bag or sounding bag for the parent’s insecurities and anxieties. it’s no different in case of financial problem a sudden job loss, debt accumulation, poor spending habits, kids often bear the brunt of a soaring financial situation. A certified financial planner and psychologist came with an idea for this money disorder among adults: financial incest or enmeshment.
Financial incest or enmeshment: it is said to be when the adult over-expose kids to their financial problems to reduce their own stress they are indulging in ‘enmeshment’. This is because the unhealthy exposure can be daunting for a child, even maiming his financial acumen.it can lead to anxiety over money, skewed attitudes and poor financial habits. Klontz described it as the “inappropriate involvement of a minor child in parental financial matters, including conversing with them about financial stress And also using children as messengers to pass along financial messages between adults”.
Here are some ways in which you are subjecting your child to money stress:
Making the kid guilty about the effort you are putting in to fund his requirements Blaming the spouse for a shortage of money, due to his poor spending habit or non-payment of maintenance after divorce. sharing your stress about loss job or lack of increment and feel better after venting on the kid .suspending his pocket money or curbing his spending.
It is good to have the money conversation with children without introducing negativity, aggression or blame games. Children are very smart and if you sit and explain the situation they will immediately understand.”.so as long as you discuss it without blaming the kid and encourage him to offer a solution to the problem in order to resolve it.

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