Financial Planners in Bangalore
Your World of Finance Matters made Easy
Tax planning and tax saving options
Financial Planners in Bangalore
Your World of Finance Matters made Easy
Tax planning and tax saving options
Retirement used to mean settling down, but for some it now means jetting off.
Retirement is increasingly a stage of life when people undertake great and bold migrations – People in their 60s are looking to retire but they’re often cash-poor and living in a country with a high standard of living and prices to match. For some, retiring overseas is an option, but it pays to do your homework.
South-East Asia and Europe are brimming with people from all over the world who have chosen to move in retirement.
Across South-East Asia in particular, the big attraction is an affordable lifestyle. The cost of living in Thailand, for example, is a fraction of that in the West. An enviable standard of living at a frugal price is the goal. It could well be the difference between a retirement spent watching your pennies go or one where you can relax.
“People who are running away from problems at home often and the same problems here, those who haven’t done their homework can become quickly disillusioned”. After a few years, the novelty wears off and they move on.
Planning carefully makes a world of difference.
Money matters !
€ – Get the right credit card
€ – Leave all your investments at home , where they earn interest
€ – Embrace renting and pre-owned movables at your destination
€ – Keep most of your cash in a home country bank which has offshore branches
€ – Take Cover – Health cover (local one is probably cheaper), travel insurance, etc
€ – Plan for Visa / residency requirements (cost effective)
€ – Plan / provision for tax expenses
Organizing your assets and taxes before you move
# Hire a financial adviser , It’s almost impossible to find someone who knows the laws of every country, so find someone who specializes in your chosen country.
# Keep your home bank accounts and open a new one when you move – Ask your bank if they charge a fee for making withdrawals from foreign automatic teller machines; if they do, you might want to upgrade your account or change banks before you move. Embrace online banking
#Tap your home for a source of income as rental – If you’ll be leaving behind a home you own, you may not want to sell it at first. But you could consider renting out all or part of it. Some retirees use Airbnb to flexibly get income from their home, while reserving its availability for when they come back to visit.
# Plan for healthcare , So paying for health care expenses out of pocket or buying local insurance or a hospital membership plan may be reasonable, with many expats saying they pay under $100 a month.
# Insure everything else – It’s a good idea to consult your local real estate agent about what insurance policy to get.
#Get a financial power of attorney – You may need an adult son or daughter, or other representative, to make financial moves in your place while you are overseas. It’s a good idea to leave them with a financial power of attorney document so that they can sign for you, for example, while selling property or other investments.
# Tax – While some retirees may not owe any income tax while living abroad, they must still file returns annually . This would be the case even if all of their assets were moved to a foreign country. The bottom line is that you may still be taxed on income regardless of where it is earned.
Retirement income is generally not taxed by other countries. As a citizen retiring abroad who receives Social Security / pension / gratuity / rent / interest ,etc , for instance, you may owe home country taxes on that income, but may not be liable for tax in the country where you’re spending your retirement years. You may also be required to report and pay taxes on any income earned in the country where you retired. Each country is different, so consult a local tax professional or one who specializes in expat tax services.
Where to ??
But how do you choose? The Retirement Index is still the most comprehensive and in-depth survey of its kind. Here are some bigger and ever-growing selection of outstanding destinations where you can live a healthier and happier life, spend a lot less money, and get a whole lot more.
Thailand – Southeast Asia offers some of the world’s most attractive retirement programs, astounding geographic and cultural diversity, and climates to suit all tastes, ranging from hot beach resorts to cool highland hill stations. You’ll find sophisticated cities, ultra-modern, affordable healthcare, and luxury accommodation for a fraction of the cost . Thailand generally has a tropical humid climate. No cold winters here. Perfect for people who like swimming and sunshine. Arthritis sufferers find great relief in this climate. There are many modern private hospitals in Thailand.
The most enjoyable parts of Thai culture revolve around the idea of sanook (meaning “fun”). Whatever you find yourself doing, you are encouraged to make it fun and enjoy every minute.
Peru – While 95% of people who visit Peru do so to explore Machu Picchu, many have discovered an ideal retirement destination, with miles of beaches, delicious cuisine, and some of the lowest costs anywhere when it comes to enjoying a high-quality lifestyle. Spectacular Macho Pichu, Cusco, and the Sacred Valley of the Incas have always been major attractions for tourists, but more expats are now heading to this area for long-term stays and retirement. Nights are cool, but midday highs can reach the 70s F for much of the year.
The capital city of Lima is home to the largest number of expats. They enjoy some of the best restaurants in the world, a large variety of art galleries and museums, a vibrant theatre scene, and the easily accessible international airport. And for anyone breaking into Peru’s business world, Lima is the place to see and be seen.
Malaysia – Idyllic beaches, islands that seduce the senses, and some of the most pristine ancient rainforests in Southeast Asia—this is Malaysia. And these are just some reasons why many call it home. The other attractive thing is the outdoor lifestyle. If white-sand beaches are your dream, you have here more than 878 islands to choose from! With all year-round good weather, the temperature in Malaysia averages 82 F, there are over 60 hiking trails for us to choose from. Apartment rentals here are good value and you can choose between sea and mountain views. In Batu Ferringhi, a nice beach suburb, you can rent a three-bedroom, apartment with sea views. The unofficial first language of the country is English, so you don’t have to learn another language here if you don’t want to.
Retirement index card-
Dilzer Consultants Pvt Ltd
It is impossible to define an average time to profitability for a start-up company because different start-ups will measure profitability in different ways. In conventional terms, it can take two to five years. The entrepreneur can take an income from a company even while it is making a loss on paper, while investors can profit if they are paid back a fixed interest rate on their investment regardless of how the company is doing.
What are the milestones in a start up?
Milestones are all about moving from one stage of risk to the next. As a person plans for a fundraising strategy, it should be ensured that there is ample time to fundraise so that one is in control of which milestone the start up hits when. The fundraising strategy chosen should use these milestones to the start up’s benefit and one must not get caught between these and stranded for cash. The art of picking milestones is trying to determine which ones are the key ones to focus on.
As a rule of thumb, these are the most important ones:
Human Resources – Hiring key people who makes the right impact on the organization.
Product – Delivering the product in the market – Product launches vs. version releases
Market – Market for the product you deliver, one should build something that people want.
Funding – Maybe some money being committed to a round that the investor in question can lead or participate in.
Other examples of milestones :
How to calculate start up costs ?
Many people underestimate start up costs and start in a haphazard, unplanned way. Estimating realistic start up costs is a key element of a financial plan.
What are startup costs?
Start up costs are expenses an owner incurs and assets one needs before the business can be launched.
Cash balance on starting date
Cash requirement is an estimate of how much money the start up needs to have in its account when it starts. In general, the cash balance on starting date is the money raised as investments or loans minus the cash spend on expenses and assets. Many entrepreneurs decide they want to raise more cash than they need so they’ll have money left over for contingencies.
For a better estimate of what is needed as starting cash balance, one should calculate the deficit spending he/she will probably incur during the early months of the business, after launch, from launch until a monthly break-even state is reached in which revenues are equal to spending.
Timing matters / Pre-launch versus normal operations
With the definition of starting costs, the launch date is the defining point. Rent and payroll expenses before launch are considered start up expenses. The same expenses after launch are considered operating or ongoing expenses. And many companies also incur some payroll expenses before launch because they need to hire people to train before launch, develop their website, stock shelves, and so forth.
The same defining point affects assets as well. For example, amounts in inventory purchased before launch and available at launch are included in starting assets. Inventory purchased after launch will affect cash flow, and the balance sheet; but isn’t considered part of the starting costs.
How to generate revenue for start ups? / Start up Revenue model
One of the most important things one can do to ensure the financial health of the start up is to create a revenue model.
Startup Revenue Model is a frame work to generate revenue for start up. While a business model majorly shows the work flow of start up, revenue model gives clear idea about which revenue source to pursue, what value to offer, how to price the value, and who pays for the value. Financial projections are generally based on the two types of approach –
Top-down Forecasting – In this forecasting the market size is first estimated and the targeted market volume is decided based on the anticipated penetration rate. This figure is then frame wired how to reach from zero to the total potential revenue.
Bottom-up Forecasting – In this forecasting, first the achievable market volume is identified and then based on the expected growth, total revenue is decided.
Both of the above mentioned financial forecasting approach needs to be balanced with revenue model to remain realistic as well as aggressive.
Top Seven key considerations for developing the revenue model
1. Choosing a revenue model approach that is best for the company and background.
2. The revenue model should communicate the uniqueness of the start up.
3. Identify potential investors strategically based on the revenue model.
4. Project out into the foreseeable future.
5. Understand that the revenue model is always evolving.
6. Identify the key variables for the company.
7. Mitigate for variables.
Debalina Roy Chowdhury
Private Equity and Venture Capital are types of financial assistance provided to the companies at various stages. Often, they are taken as one and the same thing. However, Private Equity involves larger investments in the matured companies. While , Venture Capital makes relatively small sized investments in the companies passing through initial stages of their development.
Private Equity fund refers to an unregistered investment vehicle via which investors combine their money for investment purposes. On the contrary, venture capital financing involves funding to those ventures which are started by new entrepreneurs and who need money to give shape to their ideas.
Guide to Private Equity for Start ups
The popularity of Private Equity investment has grown rapidly over the last few years. Private equity investment refers to an equity investment in a potentially successful company that is not traded publicly in the stock market. However recently, private equity firms are investing in a broad array of technology companies, early- to mid-stage profitable and unprofitable companies that a few years ago would have been unable to secure interest from these buyout firms.
Mentioned below are a few pointers about private equity for start ups.
Where from do private equity firms raise funds from?
Private equity firms raise funds from institutional investors, pension funds, endowments, and investment companies and high networth individuals. They help fund managers and high net worth individuals to diversify their portfolio and reduce risk.
The shares of a private company are not traded in public. Value of the shares of a private company is the outcome of a negotiation process between a private equity firm and the founders. To ascertain value, private equity firms use a number of valuation techniques. The selection of an appropriate valuation technique depends on the stage of investment. Here are some of the well known valuation techniques used by private equity firms for evaluating a start up.
The value of the company is estimated by discounting expected future cash flows of the company at an appropriate cost of capital (discount rate). High risk will translate to a higher discount rate and a lower valuation for the company.
Earnings multiples of comparable publicly traded companies are used to determine the earnings of target company. Earnings multiples are calculated by averaging the earnings and value of similar companies, traded in stock markets. Few used multiples are Price/Earnings (P/E), Enterprise Value/EBITDA, Enterprise Value/Sales.
Replacement cost method estimates the value of a business by calculating the estimated cost to recreate the business as it stands as on the valuation date. Replacement cost method is usually used to calculate the value of companies operating in the seed or early stage.
Features adapted by private equity investment that help the private equity firm control the portfolio company
Corporate Board Seats: If a private equity firm or strategic investor invests in the company, it will introduce a person from the Private Equity firm on the Board of Directors of the company so that the private equity firm’s interests are protected in case of major corporate procedures like share sale, restructuring, IPO, bankruptcy, or liquidation.
Noncompeting Clause: Noncompeting clauses prevent the founders from restarting the same activity during a pre-defined period of time.
Reserved Strategic Decisions: Some strategic decisions such as change in business plan, acquisitions or divestitures are subject to approval by the private equity firm.
Exit from the company is the most critical element to unlock value in private equity investment. Most private equity firms consider their exit options prior to investing. The following are some of the exit options for private equity investors:
Initial Public Offering (IPO): It provides higher valuation multiples, enhances liquidity and provides the business with more funding to fuel further growth.
Secondary Market: Secondary market sale is sale of the shares held by the private equity firm to a financial investor or to other financial investors or to strategic investors. Secondary market exits are the most common type of exit.
Management Buyout: Management buyout is purchase of the shares held by the private equity firm by the management group by raising debt or other type of funds.
Liquidation: This is the worst case option wherein the private equity firms liquidate their shareholding in the company at floor price if the company is no longer viable.
Strategic investors are meant to complement existing owners and partners. Strategic investors become involved in the management and operations of the company in addition to providing capital. Based on needs, strategic investors can get on board at any stage of the business. For example, one may want to bring in an investor who’s an expert in financial management and can guide with regard to financial decisions (in which the founder may be lacking skills).
To find private equity investors, one has to hire an investment bank with specialties in exit opportunities. Strategic investors can be found within the industry or a neighbouring industry.
If the need is significant capital, then the founder of the start up needs to demonstrate high upside potential for the next two to three years with substantially less downside risk than a venture-stage investment.
An angel investor is an affluent individual who provides capital for a business start-up, usually in exchange for convertible debt or ownership equity.
It is important to be aware of the possibility of potential loss of ownership before engaging with private equity or a strategic investor. By conducting research and considering options, one should be able to make an informed decision about whether private equity or strategic investors will be a good choice or not.
Debalina Roy Chowdhury
There are no limits on who can become a great entrepreneur. You don’t necessarily need a college degree, a bunch of money in the bank or even business experience to start something that could become the next major success. However, what you do need is a strong plan and the drive to see it through.
If you’re on Entrepreneur, odds are you already have the drive, but, you might not know how to start building your empire.
Check out this step-by-step guide to help turn your big idea into a successful business.
Why do you want to start a business? Use this question to guide what kind of business you want to start. If you want extra money, maybe you should start a side hustle. If you want more freedom, maybe it’s time to leave your 9-to-5 job and start something new.
Once you have the reason, start asking yourself even more questions to help you figure out the type of business you should start, and if you have what it takes.
What skills do you have?
Where does your passion lie?
Where is your area of expertise?
How much can you afford to spend, knowing that most businesses fail?
How much capital do you need?
What sort of lifestyle do you want to live?
Are you even ready to be an entrepreneur?
Be brutally honest with your answers.
Do you already have a killer business idea? If so, congratulations, you can proceed to the next section. If not, there are a ton of ways to start brainstorming for a good idea. Here are a few pointers.
Ask yourself what’s next. What technology or advancement is coming soon, and how will that change the business landscape as we know it? Can you get ahead of the curve?
Fix something that bugs you. People would rather have less of a bad thing than more of a good thing. If your business can fix a problem for your customers, they’ll thank you for it.
Apply your skills to an entirely new field. Many businesses and industries do things one way because that’s the way they’ve always been done. In those cases, a fresh set of eyes from a new perspective can make all the difference.
Use the better, cheaper, faster approach. Do you have a business idea that isn’t completely new? If so, think about the current offerings and focus on how you can create something better, cheaper or faster.
Also, go out and meet people and ask them questions, seek advice from other entrepreneurs, research ideas online or use whatever method makes the most sense to you.
Is anyone else already doing what you want to start doing? If not, is there a good reason why?
Start researching your potential rivals or partners within the market by using this guide. It breaks down the objectives you need to complete with your research and the methods you can use to do just that. For example, you can conduct interviews by telephone or face to face. You can also offer surveys or questionnaires that ask questions like “What factors do you consider when purchasing this product or service?” and “What areas would you suggest for improvement?”
Just as importantly, it explains three of the most common mistakes people make when starting their market research, which are:
Using only secondary research.
Using only online resources.
Surveying only the people you know.
Let people interact with your product or service and see what their take is on it. A fresh set of eyes can help point out a problem you might have missed. Plus, these people will become your first brand advocates, especially if you listen to their input and they like the product.
One of the easiest ways to utilize feedback is to focus on “The Lean Startup” approach but it involves three basic pillars: prototyping, experimenting and pivoting. By pushing out a product, getting feedback and then adapting before you push out the next product, you can constantly improve and make sure you stay relevant.
Just realize that some of that advice, solicited or not, will be good. Some of it won’t be. That’s why you should have a plan on how to receive feedback.
Stop! Your brain will probably be in an excited state when receiving feedback, and it might start racing to bad conclusions. Slow down and take the time to consider carefully what you’ve just heard.
Start by saying ‘thank you.’ People who give you negative feedback won’t expect you to thank them for it, but doing so will probably make them respect you and encourage them to continue be honest in the future.
Look for the grain of truth. If someone doesn’t like one idea, it doesn’t mean they hate everything you’ve just said. Remember that these people are trying to help, and they might just be pointing out a smaller problem or solution that you should look into further.
Seek out the patterns. If you keep hearing the same comments, then it’s time to start sitting up and taking notice.
Listen with curiosity. Be willing to enter a conversation where the customer is in control.
Ask questions. Figure out why someone liked or didn’t like something. How could you make it better? What would be a better solution?
Also, one way to help you get through negative feedback is to create a “wall of love,” where you can post all of the positive messages you’ve received. Not only will this wall of love inspire you, but you can use these messages later when you begin selling your product or service. Positive reviews online and word-of-mouth testimonials can help make a big difference.
Get all of the legal aspects out of the way early. That way, you don’t have to worry about someone taking your big idea, screwing you over in a partnership or suing you for something you never saw coming. A quick checklist of things to shore up might include:
Business structure (LLP, corporation or a partnership, to name a few.)
Register your business
Necessary bank account
Trademarks, copyrights or patents
While some things you can do on your own, it’s best to consult with a lawyer when starting out,
so you can make sure you’ve covered everything that you need.
A business plan is a written description of how your business will evolve from when it starts to the finish product.
As angel investor and tech-company founder Tim Berry wrote on Entrepreneur, “You can probably cover everything you need to convey in 20 to 30 pages of text plus another 10 pages of appendices for monthly projections, management resumes and other details. If you’ve got a plan that’s more than 40 pages long, you’re probably not summarizing very well.”
Here’s what we suggest should be in your business plan:
Title page. Start with name the name of your business, which is harder than it sounds. This article can help you avoid common mistakes when picking.
Executive summary. This is a high-level summary of what the plan includes, often touching on the company description, the problem the business is solving, the solution and why now.
Business description. What kind of business do you want to start? What does your industry look like? What will it look like in the future?
Market strategies. What is your target market, and how can you best sell to that market?
Competitive analysis. What are the strengths and weakness of your competitors? How will you beat them?
Design and development plan. What is your product or service and how will it develop? Then, create a budget for that product or service.
Operations and management plan. How does the business function on a daily basis?
Finance factors. Where is the money coming from? When? How? What sort of projections should you create and what should you take into consideration?
For each question, you can spend between one to three pages. Keep in mind, the business plan is a living, breathing document and as time goes on and your business matures, you will be updating it.
After all the work you’ve put into starting your business, it’s going to feel awesome to actually see your idea come to life. But keep in mind, it takes a village to create a product. If you want to make an app and you’re not an engineer, you will need to reach out to a technical person. Or if you need to mass-produce an item, you will have to team up with a manufacturer.
When you are ready to do product development and outsource some of the tasks make sure you:
Retain control of your product and learn constantly. If you leave the development up to someone else or another firm without supervising, you might not get the thing you envisioned.
Implement checks and balances to reduce your risk. If you only hire one freelance engineer, there’s a chance that no one will be able to check their work. If you go the freelance route, use multiple engineers so you don’t have to just take someone at their word.
Hire specialists, not generalists. Get people who are awesome at the exact thing you want, not a jack-of-all-trades type.
Don’t put all your eggs in one basket. Make sure you don’t lose all of your progress if one freelancer leaves or if a contract falls through.
Manage product development to save money. Rates can vary for engineers depending on their specialties, so make sure you’re not paying an overqualified engineer when you could get the same end result for a much lower price.
To scale your business, you are going to need to hand off responsibilities to other people. You need a team.
Whether you need a partner, employee or freelancer, these three tips can help you find a good fit:
State your goals clearly. Make sure everyone understands the vision and their role within that mission at the very start.
Follow hiring protocols. When starting the hiring process you need to take a lot of things into consideration, from screening people to asking the right questions and having the proper forms.
Establish a strong company culture. What makes a great culture? What are some of the building blocks? Keep in mind that you don’t need to have Google’s crazy office space to instill a positive atmosphere. That’s because a great culture is more about respecting and empowering employees through multiple channels, including training and mentorship, than it is about decor or ping-pong tables. In fact, office perks can turn out to be more like traps than real benefits.
This could mean an office or a store. Your priorities will differ depending on need, but here are 10 basic things to consider:
Style of operation. Make sure your location is consistent with your particular style and image.
Demographics. Start by considering who your customers are. How important is their proximity to your location? If you’re a retail store that relies on the local community, this is vital. For other business models, it might not be.
Foot traffic. If you need people to come into your store, make sure that store is easy to find. Remember: even the best retail areas have dead spots.
Accessibility and parking. Is your building accessible? Don’t give customers a reason to go somewhere else because they don’t know where to park.
Competition. Sometimes having competitors nearby is a good thing. Other times, it’s not. You’ve done the market research, so you know which is best for your business.
Proximity to other businesses and services. This is more than just about foot traffic. Look at how nearby businesses can enrich the quality of your business as a workplace, too.
Image and history of the site. What does this address state about your business? Have other businesses failed there? Does the location reflect the image you want to project?
Ordinances. Depending on your business, these could help or hinder you. For example, if you’re starting a day-care center, ordinances that state no one can build a liquor store nearby might add a level of safety for you. Just make sure you’re not the one trying to build the liquor store.
The building’s infrastructure. Especially if you’re looking at an older building or if you’re starting an online business, make sure the space can support your high-tech needs. If you’re getting serious about a building, you might want to hire an engineer to check out the state of the place to get an objective evaluation.
Rent, utilities and other costs. Rent is the biggest facilities expense, but check out the utilities, as well, and whether they’re included in the lease or not. You don’t want to start out with one price and find out it’s going to be more later.
No matter your product or industry, your business’s future is going to depend on revenue and sales.
There are a ton of different sales strategies and techniques you can employ, but here are four tenets to live by:
Listen. “When you listen to your clients/customers, you find out what they want and need, and how to make that happen,”
Ask for a commitment, but don’t be pushy about it. You can’t be too shy to ask for a next step or to close a sale, but you also can’t make customers feel as though you’re forcing them into a sale.
Don’t be afraid of hearing “no.Most people are too polite. They let you make your pitch even if they have no interest in buying. And that’s a problem of its own. Time is your most important resource.”
Make it a priority.“Actually creating revenue, and running a profitable business, is a good strategy for business. Where are we that people think users or visits or time on site is the proxy to a successful business?”
But how do you actually make those sales? Start by identifying targets who want your product or service. Find early adopters of your business, grow your customer base or put out ads to find people who fit your business. Then, figure out the right sales funnel or strategy that can convert these leads into revenue.
There are a million different ways to grow. You could acquire another business, start targeting a new market, and expand your offerings and more. But, no growth plan will matter if you don’t have the two key attributes that all growing companies have in common.
First, they have a plan to market themselves. They use social media effectively through organic, influencer or paid campaigns. They have an email list and know how to use it. They understand exactly who they need to target — either online or off — with their marketing campaigns.
Then, once they have a new customer, they understand how to retain them. You’ve probably heard many people state that the easiest customer to sell to is the one you already have. Your existing customers have already signed up for your email list, added their credit card information to your website and tested what you have to offer. In doing so, they’re starting a relationship with you and your brand. Help them feel as good about that relationship as possible.
Dilzer Consultants Pvt Ltd
During volatile times, many investors get spooked and begin to question their investment strategies. This is especially true for novice investors, who can often be tempted to pull out of the market altogether and wait on the sidelines until it seems safe to dive back in.
The thing to realize is that market volatility is inevitable. It’s the nature of the markets to move up and down over the short-term. Trying to time the market is extremely difficult. Even long-term investors should know about volatile markets and the steps that can help them weather this volatility.
Volatile markets are usually characterized by wide price fluctuations and heavy trading. They often result from an imbalance of trade orders in one direction (for example, all buys and no sells or more sells and less buys).
One explanation is that investor reactions are caused by psychological forces. This theory flies in the face of efficient market hypothesis (EMH), which states that market prices are correct and adjust to reflect all information. This behavioural approach says that substantial price changes (volatility) result from a collective change of mind by the investing public.
It’s clear there is no consensus on what causes volatility, however, because volatility exists, investors must develop ways to deal with it!
Beat the myths !
√ Long-term investing still requires homework because markets are driven by corporate fundamentals. If you find a company with a strong balance sheet and consistent earnings, the short-term fluctuations won’t affect the long-term value of the company.
‽ One common myth about a buy-and-hold strategy is that- Holding a stock for 20 years is what will make you money.
In fact, periods of volatility could be a great time to buy if you believe a company is good for the long-term !
‽ Large cap stocks are sure bets
√ While companies with a long track record and an established business make for attractive investments, they may not turn out to be fast appreciating stocks.
One of the reasons is that these stocks have already given a decent return in the past and have a higher base.
Secondly, such stocks are widely covered by a number of analysts. As a result, the ability to generate excess returns is severely limited.
‽ If the stock has done well in the past, it must do well in the future too…
√ Warren Buffet often jokes that if the past was what the market was all about, then librarians and archaeologists would be the wealthiest people in the world. Volatile markets can be as testing and cruel on old stocks as well as newbies.
‽What Goes Up Must Come Down
√ The stock market operates by itself driven by performance, demand, potential and stability or ‘financial soundness’ and no laws can be applied to it.
Bear markets do happen but bullish markets are equally common.
The stock prices are a reflection of investor sentiment and the potential of a company in an industry. You have to find a company with an excellent management team that has a stock price on an upward trend and it will continue to be on an upward trend. The selection is extremely important.
Only when the tide goes out do you know who has been swimming naked, Warren Buffett once said. This is apt for so many investors who jump into bull markets, throwing caution to the wind.
For the common man, both are equally intimidating. But which of these is the “right” way of investing?
The most common is, tactical and technical timing. Buy/sell decisions are based on either price movements or, in a more evolved form, on various technical parameters. The price-earnings (PE) ratio is often preferred. The rule here is simple, buy when the PE ratio is low and sell when it is high. The rewards of doing this systematically can be substantial.
On the other hand, for those who believe in time-in-the-market – Median returns generated by investments across various time periods are a good indicator of the rewards of “time in the market”. Median returns are satisfactory once a threshold of five years has been crossed. As expected, the case for patient investing is a strong one. Data show that the chances of loss lessen with more time spent in the market
The unequivocal answer to the question, therefore, is simple. A rewarding investment experience needs both, because the ability to spend the required “time in the market” needs good “market timing”.
Investing discipline will allow you to naturally ‘buy at lows and sell at highs’ and win over the emotions of greed and fear.
Dilzer Consultants Pvt Ltd
Sheroy does not have a specific plan for the Sheroy Corpus Fund. He has learnt the discipline not to waste or overspend from his family. “I want the security that come from having sufficient savings to continue,” he said. Just as he inculcated good habits from his family, he also learnt money lessons from their experiences. His grandparents did not buy a house early in their career and he now sees them dealing with the issues of renting a home. He sagely talks about maybe using the Sheroy Corpus Fund to buy a house early!
What is the mindset of Millennial’s and their attitude to investments and savings.
One of the most integral part of financial planning is Estate Planning. It ensures that in the event of estate owner’s death, the survivors get access to his/her assets without any disputes and legal issues, in the proportion decided by the estate owner. Wills and Trusts are important vehicles for effective estate planning.
A will is a written document of the desired way of distribution of wealth among loved ones after one’s death. A few pointers about a will:
A trust is a three-party financial arrangement where one party (the author) gives a second party (the trustee) the ability to hold assets or property for a third party (the beneficiary). A few pointers about trust:
Difference between a Will and a Trust?
Need for setting up trust in Estate Planning:
Who can form a Trust ? / Parties to a Trust
Any competent individual person over 18 years of age and mentally sound can create a trust for any legal purpose(s). A trust can be created by or on behalf of a minor with the permission of a principal civil court of original jurisdiction. Apart from an individual, a company, firm, society or association of persons is also capable of creating a trust.
What are the different types of trust?
Generally, there are two types of trusts in India, private trusts and public trusts. While private trusts are governed by the Indian Trusts Act, 1882, public trusts are divided into charitable and religious trusts.
A private trust is one in which beneficiaries may be definite and ascertained individuals and a public trust is one in which beneficiaries are unascertained individuals.
(i) Revocable Trust: When the settlor establishes a trust and retains the right to amend, modify or revoke the trust at any time, however if the author is deceased before the expiry of tenure of the trust – the status of the trust automatically changes to irrevocable.
(ii) Irrevocable Trust: When the settlor establishes a trust and the settlor effectively gives up his control over the assets – the trust is irrevocable in nature.
Without a will who gets all the assets?
In absence of estate planning, if one dies intestate (in absence of will), assets are than distributed amongst the family members (legal heirs) as per succession laws of the religion that the person belongs to (the intestacy laws of the state where the person reside). Assets include any bank accounts, securities, real estate and other assets owned at the time of death. A few examples of succession laws applicable as per religion are Hindu Succession Act, Parsi Succession Act, Muslim Shariat Laws etc.
How living trusts avoid Probate?
When setting up a living trust, a person transfer assets from his/her name to the name of the trust, which is under his/her control — such as from “Mr Rajesh and Bina Sinha, husband and wife” to “Rajesh and Bina Sinha, trustees for Rajesh and Bina Sinha trust dated (month/day/year).”
Legally the estate owner no longer owns anything; everything now belongs to the trust. So, there is nothing for the courts to control when the owner dies or become incapacitated. The concept is simple, but this is what keeps the estate owner and the family out of the courts.
“Living Trusts,” are an effective estate-planning tool for avoiding the costs and hassles of probate, preserving privacy and preparing the estate for ease of transition after one dies.
Debalina Roy Chowdhury
From the Research Desk of Dilzer Consultants Pvt Ltd
All Course fees are approximate average fees per year unless specified.
The costs mentioned are taking into account the current costs in Metros like
The costs were derived comparing various courses offered across Indian and Overseas.
|Sl. No.||Education||Category||Duration||Govt / Public||Private Colleges||Exam fees and other Miscellaneous costs|
|1||BBA/BBM||Management||3||Rs. 50,000||Rs. 1,00,000||Rs. 75,000||Rs. 5,00,000||Rs. 10,000|
|2||Bachelor in Engineering||Engineering||4||Rs. 1,00,000||Rs. 9,00,000||Rs. 1,00,000||Rs. 15,00,000||10,000-25,000|
|3||B. Science , B . Commerce ,B. Arts [Full Time]||Bachelor||3||Rs. 10,000||Rs. 8,00,000||Rs. 50,000||Rs. 10,00,000||10,000-25,000|
|4||Bachelors Hospitality and Travel||Hospitality||3||Rs. 70,000||Rs. 4,00,000||Rs. 2,00,000||Rs. 7,00,000||10,000-30,000|
|6||Bachelor in Law||Law||5||Rs. 20,000||Rs. 11,00,000||Rs. 50,000||Rs. 13,00,000||Rs. 20,000|
|8||Medicine – MBBS||Health||6||Rs. 5,00,000||Rs. 90,00,000||Rs. 12,00,000||Rs. 1,50,00,000||50,000 – 1,00,000|
|9||BDS – Dental Sciences||Health||4||Rs. 10,000||Rs. 1,00,000||Rs. 2,00,000||Rs. 40,00,000||50,000-1,50,000|
|10||Bachelors in Pharmacy||Health||3||Rs. 40,000||Rs. 2,50,000||Rs. 1,50,000||Rs. 11,50,000||20,000-75,000|
|11||Bachelors in Physiotherapy||Health||3||Rs. 40,000||Rs. 2,50,000||Rs. 1,50,000||Rs. 8,00,000||20,000-50,000|
|12||Graphics and Animation technology [Full Time]||Design/Visual Arts||6 mts – 2 yrs||Rs. 25,000||Rs. 1,00,000||Rs. 1,00,000||Rs. 3,00,000||50,000-75,000|
|13||Mass Communication , Media ,Journalism||Communication||3||Rs. 20,000||Rs. 75,000||Rs. 40,000||Rs. 7,00,000||10,000-15,000|
|14||Marine Studies||Engineering||4||Rs. 75,000||Rs. 12,00,000||Rs. 2,00,000||Rs. 15,00,000|
|15||CA/ICWA||Finance||NA||Rs. 50,000||Rs. 4,00,000|
|16||Fashion Design||Arts||3||Rs. 35,000||Rs. 10,00,000||Rs. 5,00,000||Rs. 12,00,000|
|17||Nursing||Health||3||Rs. 25,000||Rs. 1,50,000||Rs. 7,50,000|
|18||Teaching [full time]||Science||1-2 yrs||Rs. 75,000||Rs. 20,000||Rs. 1,50,000|
|19||Aviation (BBA)||Science||3||NA||NA||Rs. 2,50,000||Rs. 8,00,000|
|20||Humanities and Social Sciences (BA/ BSW)||Science||3||Rs. 15,000||Rs. 60,000||Rs. 1,00,000||Rs. 4,00,000|
|Sl. No.||Education||Category||Duration||Government/Aided||Private Colleges||Exam fees and other costs|
|3||Executive MBA Full time||Management||1||5,00,000-27,00,000||60,000-36,00,000||20,000-1,00,000|
|4||Online MBA||Management||1-2 yrs||20,000-3,00,000||15,000-5,00,000||20,000-1,00,000|
|Sl No.||Country||Course||Duration||Avg Cost per year||Living Cost||Visa Fee|
|1||US||Under Graduate(B Tech, etc)||Rs. 21,20,000||Rs. 8,00,000||11,000|
|1||US||MS||2||Rs. 19,00,000||Rs. 8,00,000||11,000|
|1||US||MBA||2||Rs. 22,00,000||Rs. 8,00,000||11,000|
|2||UK||Under Graduate – BE / B Tech||3||15,35,000||Rs. 4,81,000||30,000|
|3||Australia||Under Graduate||2.5-3||15,00,000||Rs. 6,00,000||30,000|
|4||Singapore||Under Graduate||2.5-3||13,00,000||Rs. 2,90,000||2000|
|5||Canada||Under Graduate||2.5-3||12,50,000||Rs. 5,00,000||8500|
|6||Germany||Under Graduate||2.5-3||2,50,000||Rs. 3,50,000||6000|
|7||France||Under Graduate||3||3,50,000||Rs. 3,50,000||13,000|
|8||Sweden||Under Graduate||3||10,00,000||Rs. 2,50,000||8500|