VOLUME: 04| ISSUE:04 | THANE | 4 PAGES | RS.2.00 Vete Associates TAX & INVESTMENTS CONSULTANTS PVT. LTD. B-100, Rutu Business Park, Near Brindaban Society, Thane 400 601 Tel. No.: 022-66888666/25342708 Email: [email protected] Website:www.veteassociates.com POST RETIREMENT PLANNING LOOKS EASY, THANKS TO VETE ASSOCIATES February, 2019 Having been associated for more than 20 years with Vete Associates, one of the leading Financial Planning and Advisory services in Thane, Mr. Fernandes has spread his wings and has smartly placed all his eggs in different baskets. Initially, he was into the typical PPFs (Public Provident Funds) and Post Office Savings, but today, he boasts of a diversified portfolio that caters to his post retirement financial requirements. Mutual fund investments including investments in equity funds, debt funds, balanced funds as well as direct equities, insurances, among many are included in the Vete Associates’ kiy bank. The Financial Planner and Advisor comprehends the client profile well to recommend the best investment options typically based on the client’s goals and age. Vete Associates has played a tremendous part in offering a hassle-free post retirement experience to Mr. Fernandes, ofcourse in terms of financial requirements. A dedicated team of financial planning and advisory experts are assigned to the client and this team indisputably travels the extra mile to give good returns to the client. There is ample of trust shared between Vete Associates and the client, which keeps the investment relationship going. “Vete Associates is a store house of trust and the kind of follow-up that is done by the employees is incredible” averred Mr. Rudolph. “The staff at Vete Associates has been very helpful throughout my 20-odd year investment association with them. Mr. Dnyaneshwar Vishe, Mrs. Deepa Lonkar, Ms. Priyanka Salvi and Ms. Priyanka Parkar are the people with whom I interact, and I am delighted with the kind of service that is provided by them”, expressed Mr. Rudolph. Earlier Mr. and Mrs. Fernandes used to invest in traditional investment avenues, but today, they are aware about the large gamut of modern day investment options which include mutual funds, direct investments in share market, to name a few. “My investment trail has indeed come a long way and I feel proud of it”, concluded Mr. Rudolph Fernandes. One of the most pressing question that each of us has to answer at some or the other time is that “Do I have enough money for my post retirement life?” Mr. Rudolph Fernandes is one such gentleman who has come out well out of this daunting question, thanks to Vete Associates.
Transcript
T W E L H A
N U S R A I C E N
Y M I T U A R T
L A P T A C I
W G L O D O I L
Published on 7 th of every monthVete Associates` Wealth Formula
February, 2019 4RNI No.: MAHENG/2015/65321Postal Registration No.:THC/175/2019-2021 Published on 7th of every month. Posted at Mumbai Patrika Channel Sorting Office, Mumbai GPO 400001 on 9th & 10th of every month.
VOLUME: 04| ISSUE:04 | THANE | 4 PAGES | RS.2.00
Printed, Published and Edited by NITIN RAMAKANT VETE on behalf of VETE ASSOCIATES TAX AND INVESTMENTS CONSULTANTS PVT. LTD., Printed at GOOD ARTS PRINTING PRESS, 118, SHREE HANUMAN INDL. ESTATE, 42-B, G.D.AMBEKAR MARG, WADALA, MUMBAI 400 031 and Published from VETE ASSOCIATES TAX AND INVESTMENTS CONSULTANTS PVT. LTD. B-100, RUTU BUSINESS PARK, NEAR BRINDABAN SOCIETY, THANE 400 601 Editor : NITIN RAMAKANT VETE
Vete Associates TAX & INVESTMENTS CONSULTANTS PVT. LTD.B-100, Rutu Business Park, Near Brindaban Society, Thane 400 601
Disclaimer : All possible efforts have been taken to present factually corrected data. However, the publication is not responsible, if despite this error may have crept in inadvertently or through oversight. This booklet has been prepared by Vete Associates Tax And Investments Consultants Pvt. Ltd. and is meant for use by the recipient and not for circulation. It should not be considered to be taken as an offer to sell or a solicitation to buy any security. All Investments are subject to the financial and other details provided by the company or Government body or Post Office or AMC etc., to be fully understood and read by the investor before investing and we as a publisher shall not be responsible in any manner whatsoever. Insurance is a subject matter of solicitation
B-100, Rutu Business Park, Near Brindaban Society, Thane 400 601Tel.No.:022-66888666/25342708
Vete AssociatesTAX & INVESTMENTS CONSULTANTS PVT. LTD.
Bulletin Compiled by
POST RETIREMENT PLANNING LOOKSEASY, THANKS TO VETE ASSOCIATES
February, 2019
John Bogle, the Founder of Vanguard Group who popularised low-cost index funds, died of oesophageal cancer on Wednesday at the age of 89. Vanguard is now the world's biggest mutual fund firm with around $5 trillion in assets under management. Bogle, who founded Vanguard in 1974, survived at least six heart attacks and received a heart transplant in 1996.
Source: inshorts
Founder of Vanguard, which manages $5 trillion of assets, dies at 89
Financial / Business Quiz
Which is the third most-valued IT service brand globally?Name the first Indian woman CEO of a Foreign Bank.Who founded the famous Wall Street Journal?Which financial services giant is referred as the "Thundering Herd"?What is an unusual service offered by Bank of Baroda at Tirupati?
Answers:
1.
2.
3.
4.
5.
Financial
Having been associated for more than 20 years with Vete Associates, one of the leading Financial Planning and Advisory services in Thane, Mr. Fernandes has spread his wings and has smartly placed all his eggs in different baskets. Initially, he was into the typical PPFs (Public Provident Funds) and Post Office Savings, but today, he boasts of a diversified portfolio that caters to his post retirement financial requirements.
Mutual fund investments including investments in equity funds, debt funds, balanced
funds as well as direct equities, insurances, among many are included in the Vete Associates’ kitty bank. The Financial Planner and Advisor comprehends the client profile well to recommend the best investment options typically based on the client’s goals and age.
Vete Associates has played a tremendous part in offering a hassle-free post retirement experience to Mr. Fernandes, ofcourse in terms of financial requirements. A dedicated team of financial planning and advisory experts are assigned to the client
and this team indisputably travels the extra mile to give good returns to the client. There is ample of trust shared between Vete Associates and the client, which keeps the investment relationship going. “Vete Associates is a store house of trust and the kind of follow-up that is done by the employees is incredible” averred Mr. Rudolph.
“The staff at Vete Associates has been very helpful throughout my 20-odd year investment association with them. Mr. Dnyaneshwar Vishe, Mrs. Deepa Lonkar, Ms. Priyanka Salvi and Ms. Priyanka Parkar are the people with whom I interact, and I am delighted with the kind of service that is provided by them”, expressed Mr. Rudolph. Earlier Mr. and Mrs. Fernandes used to invest in traditional investment avenues, but today, they are aware about the large gamut of modern day investment options which include mutual funds, direct investments in share market, to name a few. “My investment trail has indeed come a long way and I feel proud of it”, concluded Mr. Rudolph Fernandes.
1. TCS 2. Tarini Vaidya of KBC Bank India & South Asia 3. Charles Dow &
Edward Jones 4. Merrill Lynch5. Only Bank in India to sell Prasada
One of the most pressing question that
each of us has to answer at some or the other
time is that “Do I have enough money for my post retirement life?”
Mr. Rudolph Fernandes is one such gentleman
who has come out well out of this daunting question, thanks to
Mutual fund investments are subject to market risk, read the scheme related documents carefully before investing.
Nitin R. VeteB.Com, LLB, CFPCM, RFC
THINGS TO KNOW BEFORE INVESTING IN MUTUAL FUND SIPs
Why you want to start a SIP: Do you have a Goal in mind?
The usual reasons why investors start investing are because either they need to save taxes or just because they have some surplus in their bank accounts. Most of the investments are made with no particular goal in mind and therefore get redeemed as and when there is a need of money. If you want to start a SIP just because your friends are doing it, then it’s like starting a journey without knowing the destination. That’s why determining the goal is the most important factor. It is important to know why you want to start the SIP – Is it for the corpus that you want for your retirement or for the higher education of your kids or the bungalow you want to build at age 50 or maybe the big car you want to buy after 5 years or so. Once you are clear about what is the goal then you should start the SIP. An accumulation of investments over a long period of time through SIP route powered with compounding could generate the desired results.
Know the Money Value of the GoalYou have to attach a money value to the goal
by determining what the present cost of the goal is and what is likely to be the future cost of this goal, depending on when you wish the goal to be fulfilled. For example - If you are planning to invest for higher education of your child in a foreign university, you need a corpus of minimum 30 lakhs as per present value. However, if your child needs this education after five years the future value will be approximately 46lakhs assuming inflation at 9%. Therefore, you need to start the SIP with the goal amount as 46lakhs and not 30 lakhs.
Is it a Short, Medium or Long Term Goal?Short term goals are those which should be
ideally achieved in a year or two. These goals have a very brief investment horizon and require safe and steady returns during the SIP tenure. Medium terms goals are those which have a minimum investment horizon of three to five years. A portion of investment in Equity Funds could be beneficial in such a scenario along with debt and balanced funds. Long term goals are the ones that are five, ten or maybe many more years away. Retirement or higher education planning for a new born child, your retirement home or even a world tour could be a long term goal. Defining the investment horizon of the goal will let you determine the investment you make in present time to attain the required corpus in future value.
Choose the Right Asset Class to Reach the Goal
Experts have said asset allocation determines your returns rather than individual selection of funds. In Mutual Funds you can select from Liquid Funds, Equity Funds and Debt Funds. The amount of investment you make in every asset class will determine the future value of the corpus. Liquid funds or short term debt funds are ideal for a short term goal as they provide returns in a short investment horizon. Partial investments in debt and or equity funds or balanced funds are crucial for medium term goals. And for a long term goal you can depend more on equity oriented mutual funds. If you are a risk averse investor, for
medium or long term goals of just three to five years onwards, you must invest equally (in equity and debt) or be inclined towards debt to balance out the volatility of equity funds.
Which one is the right scheme for your SIP?Ideally, you should invest in a diversified
portfolio of schemes that has consistent performance for the last three, five or ten years and often having outperformed the category average and benchmark returns.
The above table contains a few illustrations of what could be the possible future values of monthly SIP investments. The future value could vary due to changes in the rate of returns generated over a period of time. If you have rightly calculated your future goal value then deciding the right SIP amount should not be a problem. Also, you should keep the return expectation a little lower. For example-the fund chosen by you may show a historical annualized return of 18% but while deciding the right SIP amount you should conservatively calculate the return, say at 12%-15% annualized. Therefore, even if in future the fund is able to generate 3-5% lesser then its historical returns, your goal amount will be achieved. Therefore, it is essential to invest the right amount because in case of shortfall, options such as borrowing can push investor in financial trouble.
Choose SIP Date and Bank CarefullyChoose a monthly SIP date according to the
credits you are getting in your bank account, for example - your salary credit, monthly interest or rental income or any kind of credit which is of fixed nature and hits your account on a particular date every month. Your SIP ECS (Electronic Clearing System) mandate or post dated cheques should be dated after these credit dates. Again for example, if you are getting salary credit on 1st of every month, you can choose any date on or after 2nd of every month. Also, it is advisable to maintain a bank balance of at least one month of your SIP instalment value. This is just to avoid any default in SIP in case your credits are delayed for a few days.
It is also important to choose the bank where you are getting your credits and from there you should allow direct debits for your SIPs. Avoid giving SIP debit instructions from a bank where you hardly maintain any balance or do not get any credits. Transferring funds from one bank to another could be time consuming and you might just forget it.
One of the most integral part of financial planning is estate planning. Now, what is Estate Planning?
Estate is everything that one owns viz. assets & owes viz. liabilities and responsibilities. Estate Planning essentially means to decide how your estate will devolve upon your loved ones post your demise. There is never a specific age or defined affluence level to engage in estate planning. An estate plan is for everyone like you and me who wishes to execute a smooth transfer of assets due to his/ her incapacitation or demise, irrespective of current age or size of portfolio.
Most of us believe that nomination and joint ownership is a way of estate planning. However, both these means are usually ineffective and legally disputable. It is important to know that nomination and joint ownership are both superseded by succession laws. Most family disputes have arisen owning to nomination / joint ownership being different individuals compared with legal heirs.
As individuals, while we place a lot of importance on asset creation, it is equally important to ensure protection, preservation and succession of wealth. We plan for our day-to-day household expenses, purchasing of property, child's education/marriage, retirement needs etc. One area which gets low focus is estate planning, may be due to limited awareness or lack of urgency and expertise. Also, over the last few decades the social landscape of our country has undergone a change, seeing gradual disintegration of the joint family system and advent of nuclear family. In such a scenario, sudden deaths, incapacitations, separations or legal issues cannot be foreseen and may lead to serious challenge for kids.
In India, family businesses have always been an integral part of our economy. But in today's era, family businesses are facing challenges due to disputes among family members, which could lead to disruption in business. Disruption could be due to partition because of mismatch of ideology, the death of a partner, etc. One of the most important challenges faced by family business is ensuring the successful transition of the enterprise to the next generation.
Important vehicles for effective estate planning are Wills and Trusts. Will is the simplest form of estate planning. It is a legal document that comes into effect on the demise of an individual. It is the most convenient way for you to ensure smooth transmission of your wealth to the beneficiaries as per your desired distribution. Drafting of Will is also an opportunity to nominate the guardians for minor children. Will can be made only by individuals and has no legal validity until your demise. Will does not help manage individual's assets when he/she is incapacitated, owing to old age, illness or injury. Will can be modified or revoked during the life time of an individual any number of times. Writing a will is simple and requires minimal efforts and money.
Thus, in absence of estate planning, if one dies intestate (in absence of will), assets are then distributed amongst the family members (legal heirs) as per succession laws of the religion that the person belongs to.
Source: Business World
Estate Planning:
Why should it be a priority in the Indian
Society?7What is the Right Amount for Your SIP?
Monthly SIP Total Returns @12% per annumAmount 5 Years 10 Years 15 Years 20 Years2,000 1.63 lakhs 4.60 lakhs 9.99 lakhs 19.78 lakhs5,000 4.08 lakhs 11.50 lakhs 24.97 lakhs 49.46 lakhs7,000 5.71 lakhs 16.10 lakhs 34.97 lakhs 69.24 lakhs10,000 8.16 lakhs 23.00 lakhs 49.95 lakhs 98.92 lakhs15,000 12.25lakhs 34.50lakhs 74.93 lakhs 1.48 crores20,000 16.33lakhs 46.00lakhs 99.91 lakhs 1.97 crores25,000 20.41lakhs 57.50lakhs 1.24 crores 2.47 crores50,000 40.83lakhs 1.15 crores 2.49 crores 4.94 crores(Future value of your monthly SIP @12% return on different time period)
One of the most important things these days is to buy a suitable health insurance plan for our family. But we need to understand different aspects of the policy before buying and this is where sometimes we may make a mistake. If we buy a health insurance plan either in hurry or without complete understanding of the plan it may result in unpleasant experience at the time of claim.
Underinsuring yourselfThe most common health insurance
mistake is skimping on the coverage amount. You tend to lower your premium costs because of which the coverage gets limited. Would the low coverage be enough in meeting your medical expenses?
The remedy – Medical expenses have become unaffordable to the common man. Since health plans are designed to protect you against such medical costs, invest in an optimal sum insured. Take into consideration the number of members to be covered under your plan and the current medical expenses when selecting the sum insured. If affordability is an issue, buy a top-up plan for supplementing your cover but do ensure a higher coverage.
Overlooking the sub-limitsWhen you buy a health plan you
seldom spare a look at the limits and sub-limits applicable on the coverage features. Consequently, when you are presented with the medical bills in excess of the sub-limits you face a financial strain. You should be careful about this clause of your health insurance policy before buying the health policy.
The remedy-Always find out which
coverage benefits have limits and sub-limits associated with them. The most common one is room rent sub-limits under inpatient hospitalization coverage. This sub-limit influences the total admissible hospitalization claim. So, check these sub-limits before buying the plan. If possible, try and buy a plan which has higher coverage limits or no sub-limits.
Ignoring the exclusionsH e a l t h p l a n s h a v e b e c o m e
comprehensive, but they are not universal in terms of coverage. There are some instances which are excluded from the scope of coverage of any plan. Most of you are unaware of these exclusions as you don’t tend to notice them. The result -rejection of your claim if it is for an excluded ailment/illness.
The remedy-Always go through the exclusions of your health insurance plan. This would give you a clear picture of what is covered and what is not covered under the plan so that you can make a claim accordingly and decide whether to buy the plan in the first place.
Non-disclosure of your previous medical history
Some of us may tend to hide our existing medical ailments or previous medical history when buying a health plan fearing that either the proposal would be rejected, or the premiums would be higher. This is a big mistake that people generally make because, during a claim, if the insurer finds out that you had purposefully wrongly stated your medical history when buying the plan and the claim is due to an existing illness, the claim would be rejected.
The remedy – Insurance contracts are the contracts of utmost good faith where the policy is issued based on the information you provide. So, always be truthful when buying the health plan. An adverse medical history might raise your premium but at least your claims would be honored as the insurance company would be able to account for the additional risk when issuing the policy.
Imitating your friend’s and relative’s health insurance choice
Do you wear the same clothes that your friends and relatives wear? Then why buy the same insurance plan which your friends and relatives have. Your needs are different from others, aren’t they? The plan should, therefore, suit your needs and not the needs of your friends and relatives.
The remedy-Compare health insurance plans before you buy them. The online platform allows easy comparison where you can find the different health plans suiting your requirements, their coverage features and their respective premiums. Buy a plan only after comparing and ensure that the plan is tailor-made for your healthcare needs.
Making mistakes due to lack of knowledge is common but now that you have a ready reckoner of common mistakes, be careful while choosing your health insurance plan. Avoid the above-mentioned common mistakes while choosing a health plan, so that your health insurance policy provides you the best coverage benefits and pays the claims when they incur.
Source - Moneycontrol
mistakes to avoid while buying
health insurance
Here are some of the common mistakes that people make while purchasing health insurance and also some suggestions to avoid them which will make for a happy claim experience.
Mutual fund investments are subject to market risk, read the scheme related documents carefully before investing.
Mutual fund investments are subject to market risk, read the scheme related documents carefully before investing.
Nitin R. VeteB.Com, LLB, CFPCM, RFC
THINGS TO KNOW BEFORE INVESTING IN MUTUAL FUND SIPs
Why you want to start a SIP: Do you have a Goal in mind?
The usual reasons why investors start investing are because either they need to save taxes or just because they have some surplus in their bank accounts. Most of the investments are made with no particular goal in mind and therefore get redeemed as and when there is a need of money. If you want to start a SIP just because your friends are doing it, then it’s like starting a journey without knowing the destination. That’s why determining the goal is the most important factor. It is important to know why you want to start the SIP – Is it for the corpus that you want for your retirement or for the higher education of your kids or the bungalow you want to build at age 50 or maybe the big car you want to buy after 5 years or so. Once you are clear about what is the goal then you should start the SIP. An accumulation of investments over a long period of time through SIP route powered with compounding could generate the desired results.
Know the Money Value of the GoalYou have to attach a money value to the goal
by determining what the present cost of the goal is and what is likely to be the future cost of this goal, depending on when you wish the goal to be fulfilled. For example - If you are planning to invest for higher education of your child in a foreign university, you need a corpus of minimum 30 lakhs as per present value. However, if your child needs this education after five years the future value will be approximately 46lakhs assuming inflation at 9%. Therefore, you need to start the SIP with the goal amount as 46lakhs and not 30 lakhs.
Is it a Short, Medium or Long Term Goal?Short term goals are those which should be
ideally achieved in a year or two. These goals have a very brief investment horizon and require safe and steady returns during the SIP tenure. Medium terms goals are those which have a minimum investment horizon of three to five years. A portion of investment in Equity Funds could be beneficial in such a scenario along with debt and balanced funds. Long term goals are the ones that are five, ten or maybe many more years away. Retirement or higher education planning for a new born child, your retirement home or even a world tour could be a long term goal. Defining the investment horizon of the goal will let you determine the investment you make in present time to attain the required corpus in future value.
Choose the Right Asset Class to Reach the Goal
Experts have said asset allocation determines your returns rather than individual selection of funds. In Mutual Funds you can select from Liquid Funds, Equity Funds and Debt Funds. The amount of investment you make in every asset class will determine the future value of the corpus. Liquid funds or short term debt funds are ideal for a short term goal as they provide returns in a short investment horizon. Partial investments in debt and or equity funds or balanced funds are crucial for medium term goals. And for a long term goal you can depend more on equity oriented mutual funds. If you are a risk averse investor, for
medium or long term goals of just three to five years onwards, you must invest equally (in equity and debt) or be inclined towards debt to balance out the volatility of equity funds.
Which one is the right scheme for your SIP?Ideally, you should invest in a diversified
portfolio of schemes that has consistent performance for the last three, five or ten years and often having outperformed the category average and benchmark returns.
The above table contains a few illustrations of what could be the possible future values of monthly SIP investments. The future value could vary due to changes in the rate of returns generated over a period of time. If you have rightly calculated your future goal value then deciding the right SIP amount should not be a problem. Also, you should keep the return expectation a little lower. For example-the fund chosen by you may show a historical annualized return of 18% but while deciding the right SIP amount you should conservatively calculate the return, say at 12%-15% annualized. Therefore, even if in future the fund is able to generate 3-5% lesser then its historical returns, your goal amount will be achieved. Therefore, it is essential to invest the right amount because in case of shortfall, options such as borrowing can push investor in financial trouble.
Choose SIP Date and Bank CarefullyChoose a monthly SIP date according to the
credits you are getting in your bank account, for example - your salary credit, monthly interest or rental income or any kind of credit which is of fixed nature and hits your account on a particular date every month. Your SIP ECS (Electronic Clearing System) mandate or post dated cheques should be dated after these credit dates. Again for example, if you are getting salary credit on 1st of every month, you can choose any date on or after 2nd of every month. Also, it is advisable to maintain a bank balance of at least one month of your SIP instalment value. This is just to avoid any default in SIP in case your credits are delayed for a few days.
It is also important to choose the bank where you are getting your credits and from there you should allow direct debits for your SIPs. Avoid giving SIP debit instructions from a bank where you hardly maintain any balance or do not get any credits. Transferring funds from one bank to another could be time consuming and you might just forget it.
One of the most integral part of financial planning is estate planning. Now, what is Estate Planning?
Estate is everything that one owns viz. assets & owes viz. liabilities and responsibilities. Estate Planning essentially means to decide how your estate will devolve upon your loved ones post your demise. There is never a specific age or defined affluence level to engage in estate planning. An estate plan is for everyone like you and me who wishes to execute a smooth transfer of assets due to his/ her incapacitation or demise, irrespective of current age or size of portfolio.
Most of us believe that nomination and joint ownership is a way of estate planning. However, both these means are usually ineffective and legally disputable. It is important to know that nomination and joint ownership are both superseded by succession laws. Most family disputes have arisen owning to nomination / joint ownership being different individuals compared with legal heirs.
As individuals, while we place a lot of importance on asset creation, it is equally important to ensure protection, preservation and succession of wealth. We plan for our day-to-day household expenses, purchasing of property, child's education/marriage, retirement needs etc. One area which gets low focus is estate planning, may be due to limited awareness or lack of urgency and expertise. Also, over the last few decades the social landscape of our country has undergone a change, seeing gradual disintegration of the joint family system and advent of nuclear family. In such a scenario, sudden deaths, incapacitations, separations or legal issues cannot be foreseen and may lead to serious challenge for kids.
In India, family businesses have always been an integral part of our economy. But in today's era, family businesses are facing challenges due to disputes among family members, which could lead to disruption in business. Disruption could be due to partition because of mismatch of ideology, the death of a partner, etc. One of the most important challenges faced by family business is ensuring the successful transition of the enterprise to the next generation.
Important vehicles for effective estate planning are Wills and Trusts. Will is the simplest form of estate planning. It is a legal document that comes into effect on the demise of an individual. It is the most convenient way for you to ensure smooth transmission of your wealth to the beneficiaries as per your desired distribution. Drafting of Will is also an opportunity to nominate the guardians for minor children. Will can be made only by individuals and has no legal validity until your demise. Will does not help manage individual's assets when he/she is incapacitated, owing to old age, illness or injury. Will can be modified or revoked during the life time of an individual any number of times. Writing a will is simple and requires minimal efforts and money.
Thus, in absence of estate planning, if one dies intestate (in absence of will), assets are then distributed amongst the family members (legal heirs) as per succession laws of the religion that the person belongs to.
Source: Business World
Estate Planning:
Why should it be a priority in the Indian
Society?7What is the Right Amount for Your SIP?
Monthly SIP Total Returns @12% per annumAmount 5 Years 10 Years 15 Years 20 Years2,000 1.63 lakhs 4.60 lakhs 9.99 lakhs 19.78 lakhs5,000 4.08 lakhs 11.50 lakhs 24.97 lakhs 49.46 lakhs7,000 5.71 lakhs 16.10 lakhs 34.97 lakhs 69.24 lakhs10,000 8.16 lakhs 23.00 lakhs 49.95 lakhs 98.92 lakhs15,000 12.25lakhs 34.50lakhs 74.93 lakhs 1.48 crores20,000 16.33lakhs 46.00lakhs 99.91 lakhs 1.97 crores25,000 20.41lakhs 57.50lakhs 1.24 crores 2.47 crores50,000 40.83lakhs 1.15 crores 2.49 crores 4.94 crores(Future value of your monthly SIP @12% return on different time period)
One of the most important things these days is to buy a suitable health insurance plan for our family. But we need to understand different aspects of the policy before buying and this is where sometimes we may make a mistake. If we buy a health insurance plan either in hurry or without complete understanding of the plan it may result in unpleasant experience at the time of claim.
Underinsuring yourselfThe most common health insurance
mistake is skimping on the coverage amount. You tend to lower your premium costs because of which the coverage gets limited. Would the low coverage be enough in meeting your medical expenses?
The remedy – Medical expenses have become unaffordable to the common man. Since health plans are designed to protect you against such medical costs, invest in an optimal sum insured. Take into consideration the number of members to be covered under your plan and the current medical expenses when selecting the sum insured. If affordability is an issue, buy a top-up plan for supplementing your cover but do ensure a higher coverage.
Overlooking the sub-limitsWhen you buy a health plan you
seldom spare a look at the limits and sub-limits applicable on the coverage features. Consequently, when you are presented with the medical bills in excess of the sub-limits you face a financial strain. You should be careful about this clause of your health insurance policy before buying the health policy.
The remedy-Always find out which
coverage benefits have limits and sub-limits associated with them. The most common one is room rent sub-limits under inpatient hospitalization coverage. This sub-limit influences the total admissible hospitalization claim. So, check these sub-limits before buying the plan. If possible, try and buy a plan which has higher coverage limits or no sub-limits.
Ignoring the exclusionsH e a l t h p l a n s h a v e b e c o m e
comprehensive, but they are not universal in terms of coverage. There are some instances which are excluded from the scope of coverage of any plan. Most of you are unaware of these exclusions as you don’t tend to notice them. The result -rejection of your claim if it is for an excluded ailment/illness.
The remedy-Always go through the exclusions of your health insurance plan. This would give you a clear picture of what is covered and what is not covered under the plan so that you can make a claim accordingly and decide whether to buy the plan in the first place.
Non-disclosure of your previous medical history
Some of us may tend to hide our existing medical ailments or previous medical history when buying a health plan fearing that either the proposal would be rejected, or the premiums would be higher. This is a big mistake that people generally make because, during a claim, if the insurer finds out that you had purposefully wrongly stated your medical history when buying the plan and the claim is due to an existing illness, the claim would be rejected.
The remedy – Insurance contracts are the contracts of utmost good faith where the policy is issued based on the information you provide. So, always be truthful when buying the health plan. An adverse medical history might raise your premium but at least your claims would be honored as the insurance company would be able to account for the additional risk when issuing the policy.
Imitating your friend’s and relative’s health insurance choice
Do you wear the same clothes that your friends and relatives wear? Then why buy the same insurance plan which your friends and relatives have. Your needs are different from others, aren’t they? The plan should, therefore, suit your needs and not the needs of your friends and relatives.
The remedy-Compare health insurance plans before you buy them. The online platform allows easy comparison where you can find the different health plans suiting your requirements, their coverage features and their respective premiums. Buy a plan only after comparing and ensure that the plan is tailor-made for your healthcare needs.
Making mistakes due to lack of knowledge is common but now that you have a ready reckoner of common mistakes, be careful while choosing your health insurance plan. Avoid the above-mentioned common mistakes while choosing a health plan, so that your health insurance policy provides you the best coverage benefits and pays the claims when they incur.
Source - Moneycontrol
mistakes to avoid while buying
health insurance
Here are some of the common mistakes that people make while purchasing health insurance and also some suggestions to avoid them which will make for a happy claim experience.
T W E L H A
N U S R A I C E N
Y M I T U A R T
L A P T A C I
W G L O D O I L
Published on 7 th of every monthVete Associates` Wealth Formula
February, 2019 4RNI No.: MAHENG/2015/65321Postal Registration No.:THC/175/2019-2021 Published on 7th of every month. Posted at Mumbai Patrika Channel Sorting Office, Mumbai GPO 400001 on 9th & 10th of every month.
VOLUME: 04| ISSUE:04 | THANE | 4 PAGES | RS.2.00
Printed, Published and Edited by NITIN RAMAKANT VETE on behalf of VETE ASSOCIATES TAX AND INVESTMENTS CONSULTANTS PVT. LTD., Printed at GOOD ARTS PRINTING PRESS, 118, SHREE HANUMAN INDL. ESTATE, 42-B, G.D.AMBEKAR MARG, WADALA, MUMBAI 400 031 and Published from VETE ASSOCIATES TAX AND INVESTMENTS CONSULTANTS PVT. LTD. B-100, RUTU BUSINESS PARK, NEAR BRINDABAN SOCIETY, THANE 400 601 Editor : NITIN RAMAKANT VETE
Vete Associates TAX & INVESTMENTS CONSULTANTS PVT. LTD.B-100, Rutu Business Park, Near Brindaban Society, Thane 400 601
Disclaimer : All possible efforts have been taken to present factually corrected data. However, the publication is not responsible, if despite this error may have crept in inadvertently or through oversight. This booklet has been prepared by Vete Associates Tax And Investments Consultants Pvt. Ltd. and is meant for use by the recipient and not for circulation. It should not be considered to be taken as an offer to sell or a solicitation to buy any security. All Investments are subject to the financial and other details provided by the company or Government body or Post Office or AMC etc., to be fully understood and read by the investor before investing and we as a publisher shall not be responsible in any manner whatsoever. Insurance is a subject matter of solicitation
B-100, Rutu Business Park, Near Brindaban Society, Thane 400 601Tel.No.:022-66888666/25342708
Vete AssociatesTAX & INVESTMENTS CONSULTANTS PVT. LTD.
Bulletin Compiled by
POST RETIREMENT PLANNING LOOKSEASY, THANKS TO VETE ASSOCIATES
February, 2019
John Bogle, the Founder of Vanguard Group who popularised low-cost index funds, died of oesophageal cancer on Wednesday at the age of 89. Vanguard is now the world's biggest mutual fund firm with around $5 trillion in assets under management. Bogle, who founded Vanguard in 1974, survived at least six heart attacks and received a heart transplant in 1996.
Source: inshorts
Founder of Vanguard, which manages $5 trillion of assets, dies at 89
Financial / Business Quiz
Which is the third most-valued IT service brand globally?Name the first Indian woman CEO of a Foreign Bank.Who founded the famous Wall Street Journal?Which financial services giant is referred as the "Thundering Herd"?What is an unusual service offered by Bank of Baroda at Tirupati?
Answers:
1.
2.
3.
4.
5.
Financial
Having been associated for more than 20 years with Vete Associates, one of the leading Financial Planning and Advisory services in Thane, Mr. Fernandes has spread his wings and has smartly placed all his eggs in different baskets. Initially, he was into the typical PPFs (Public Provident Funds) and Post Office Savings, but today, he boasts of a diversified portfolio that caters to his post retirement financial requirements.
Mutual fund investments including investments in equity funds, debt funds, balanced
funds as well as direct equities, insurances, among many are included in the Vete Associates’ kitty bank. The Financial Planner and Advisor comprehends the client profile well to recommend the best investment options typically based on the client’s goals and age.
Vete Associates has played a tremendous part in offering a hassle-free post retirement experience to Mr. Fernandes, ofcourse in terms of financial requirements. A dedicated team of financial planning and advisory experts are assigned to the client
and this team indisputably travels the extra mile to give good returns to the client. There is ample of trust shared between Vete Associates and the client, which keeps the investment relationship going. “Vete Associates is a store house of trust and the kind of follow-up that is done by the employees is incredible” averred Mr. Rudolph.
“The staff at Vete Associates has been very helpful throughout my 20-odd year investment association with them. Mr. Dnyaneshwar Vishe, Mrs. Deepa Lonkar, Ms. Priyanka Salvi and Ms. Priyanka Parkar are the people with whom I interact, and I am delighted with the kind of service that is provided by them”, expressed Mr. Rudolph. Earlier Mr. and Mrs. Fernandes used to invest in traditional investment avenues, but today, they are aware about the large gamut of modern day investment options which include mutual funds, direct investments in share market, to name a few. “My investment trail has indeed come a long way and I feel proud of it”, concluded Mr. Rudolph Fernandes.
1. TCS 2. Tarini Vaidya of KBC Bank India & South Asia 3. Charles Dow &
Edward Jones 4. Merrill Lynch5. Only Bank in India to sell Prasada
One of the most pressing question that
each of us has to answer at some or the other
time is that “Do I have enough money for my post retirement life?”
Mr. Rudolph Fernandes is one such gentleman
who has come out well out of this daunting question, thanks to
