What are some financial tips that everyone should know?

What are some financial tips that everyone should know?

1. Avoid buying property on loans as it eats most of your earnings unless you have a clear plan for its repayment. It’s important to monitor cash flow. Though, the house will be your asset, your liability will be much more.

2. Start a SIP at a very young age. Try to save atleast 15–25 % of your earnings.

3. Avoid buying a car unless you use it everyday
.
4. Do not let this sentence scare you. “Mutual fund investment are subject to market risk. Please read the offer documents carefully before investing”. Most people avoid investing in mutual funds just because of this one warning. Yes, there is a market risk, but look at the history and growth of mutual funds.

5. Try having a simple wedding.

6. Atleast 20% of your wealth should be liquid so you can utilize it when necessary.

7. Considering inflation, you are actually losing money if it is in savings bank account. Do not keep huge money in savings bank account.

8. If you invest in stocks, pay due attention on the brokerage part.

9. If you invest in stocks have a separate account for delivery investment and Intraday investment. It is easy to monitor this way and also makes tax calculation easy

10. Do not have a belief that property and car make you rich. Its what you save and invest, that is important.

11. Never invest in insurance for returns. Insurance is not an investment option. It is a risk management tool.

12. Your personal life and health are the most important investment. Stay healthy and live happily.

*LIFE AFTER 60*

🕉🇮🇳🕉gd mrng🕉🇮🇳🕉
*Dr A.LOH:*
*LIFE AFTER 60*
Life can begin at 60, it is all in your hands! Many people feel unhappy, health-wise and security-wise, after 60 years of age, owing to the diminishing importance given to them and their opinions. But, it need not be so, if only we understand the basic principles of life and follow them scrupulously. Here are ten mantras to age gracefully and make life after retirement pleasant.

*1. Never say I am aged’ :*
There are three ages, chronological, biological, and psychological. The first is calculated based on our date of birth; the second is determined by the health conditions; the third is how old we feel we are. While we don’t have control over the first, we can take care of our health with good diet, exercise and a cheerful attitude. A positive attitude and optimistic thinking can reverse the third age.

*2. Health is wealth:*
If you really love your kith and kin, taking care of your health should be your priority. Thus, you will not be a burden to them. Have an annual health check-up and take the prescribed medicines regularly. Do take health insurance coverage.

*3. Money is important:*
Money is essential for meeting the basic necessities of life, keeping good health and earning family respect and security. Don’t spend beyond your means even for your children. You have lived for them all through and it is time you enjoyed a harmonious life with your spouse. If your children are grateful and they take care of you, you are blessed. But, never take it for granted.

*4. Relaxation and recreation:*
The most relaxing and recreating forces are a healthy religious attitude, good sleep, music and laughter. Have faith in God, learn to sleep well, love good music and see the funny side of life.

*5. Time is precious:*
It is almost like holding a horses’ reins. When they are in your hands, you can control them. Imagine that everyday you are born again. Yesterday is a cancelled cheque. Tomorrow is a promissory note. Today is ready cash – use it profitably. Live this moment; live it fully, now, in the present time.

*6. Change is the only permanent thing:* We should accept change – it is inevitable. The only way to make sense out of change is to join in the dance. Change has brought about many pleasant things. We should be happy that our children are blessed.

*7. Enlightened selfishness:*
All of us are basically selfish. Whatever we do, we expect something in return. We should definitely be grateful to those who stood by us. But, our focus should be on the internal satisfaction and the happiness we derive by doing good for others, without expecting anything in return. Perform a random act of kindness daily.

*8. Forget and forgive:*
Don’t be bothered too much about others’ mistakes. We are not spiritual enough to show our other cheek when we are slapped in one. But for the sake of our own health and happiness, let us forgive and forget them. Otherwise, we will be only increasing our blood pressure.

*9. Everything has a purpose:*
Take life as it comes. Accept yourself as you are and also accept others for what they are. Everybody is unique and is right in his own way.

*10. Overcome the fear of death:*
We all know that one day we have to leave this world. Still we are afraid of death. We think that our spouse and children will be unable to withstand our loss. But the truth is no one is going to die for you; they may be depressed for some time. Time heals everything and they will go on.

Sunday reflection – Be grateful.

Sunday reflection – Be grateful.

The qualifications that gave you a job are the same qualifications others have, but are without work.
*Be grateful*.

The prayers that God answered for you, is the same prayer others are still waiting to be answered.
*Be grateful*.

The road that you use safely every day is the same road many others have died on.
*Be grateful*.

The temple in which God blessed you is the same temple other people worship in, but their lives are still in discord.
*Be grateful*.

The hospital bed you used and got healed on is the same bed many others died on.
*Be grateful*.

The rain that made your field produce crops is the same rain that destroyed someone else’s fields.
*Be grateful*.

Be grateful because whatever you have is not due to your power, your might or your qualifications but it’s only due to the Grace of God.

Remember He is the Giver of everything that you have today.

Be grateful !

Aadhar vs Apple & Samsung

*Aadhar vs Apple & Samsung* 🤔

Aadhar – I have Biometric information of people who posses me

Apple – I too have the same

Samsung – I too have what’s new

Aadhar – But Why People Criticise me I only take it once from the people

Apple – 😂😂😂😂 I take finger print and eye scan daily and People love giving it and pay 50000 to buy me

Aadhar – OMG Why ? But they say Some one can steal these biometric from me. Don’t they tell you ?

Apple – 🖕 uff I actually save every information on IPhone backup Server But they love me because I am costly. Indians love Costly death

Aadhar – They say I am not secured despite the fact that I am encrypted

Apple – Look Do you remember when FBI took data from us ? It’s not about encryption I gave all data to US Intelligence

Samsung – I too 😂😂😂 My brothers like Vivo , Xiomi do the same and Chinese take it

Aadhar – But Why Only I am cursed ?

Apple, Samsung Unitedly – It is because you are Indian and possessed by Indian People who needs excuses to abuse their own Government. You become that Excuse, We are brands people give 40K- 50 K and give all details like Location, GPS, Contacts, Biometric every damn thing and Love Posting on Facebook – Hey That’s my New IPhone 😄 🤔

*USAGE*- Use stevia to sweeten your beverage like tea, coffee, milk, lemonade or soup or replace of normal SUGAR.

*Features & details*

*STEVIA*

*ZERO CALORIE SWEETNER* – Stevia is a plant based 100% natural sugar substitute. Stevia is considered 200 times sweeter than sugar. It does not contain any added chemicals. Stevia leaves are sweet and contain lot of beneficial nutrients. Stevia contains a wealth of antioxidant compounds.

*DIABETES* – Stevia is a naturally sweet plant which can be used by a diabetic person to control craving of sugar without increasing blood sugar level. Stevia contains “stevioside” which is a non-carbohydrate compound.

*WEIGHT LOSS* – There are many causes of weight gain including high calorie food, high carbohydrate food, low physical activity and prolonged sitting. Intake of excess sugar is associated with obesity, diabetes, gastric flatulence and skin darkening. Stevia is a plant based, zero calorie, 100% natural, gluten free sugar substitute for healthy living and weight loss. Reducing sugar in diet will immediately help you in weight management.

*SAFE* – Independent scientific experts in both the U.S. and globally have concluded that stevia sweeteners are safe for people of all ages and populations. Stevioside, the main glycoside of stevia, was found to be nontoxic in acute toxicity studies in variety of laboratory animals. In 2008, the FDA declared that stevia was safe in foods and beverages.

*USAGE*- Use stevia to sweeten your beverage like tea, coffee, milk, lemonade or soup or replace of normal SUGAR.

Practice is boring but that’s what makes your performance interesting

Practice is boring but that’s what makes your performance interesting

Once, Lord Indra got upset with Farmers, he announced there will be No rain for 12 years & you won’t be able to produce crops

Farmers begged for clemency from Lord Indra, who then said, Rain will be possible only if Lord Shiva plays his Damru, but he secretly requested Lord Shiva not to agree to these Farmers & when Farmers reached Lord Shiva he repeated the same thing that he will play Damru after 12 years

Disappointed Farmers decided to wait till 12 years but one Farmer regularly was digging treating & putting manure in the soil & sowing the seeds even with no crop emerging

Other Farmers were making fun of that Farmer. After 3 years all Farmers asked that Farmer why are you wasting your time n energy when you know that rains will not come before 12 years

He replied ” I know that crop won’t come out but I’m doing it as a matter of “practice”. After 12 years I will forget the process of growing crops n working in the field so I must keep it doing so that I’m fit to produce the crop, the moment there is rain after 12 years

Hearing his argument Goddess Parvati praised his version before Lord Shiva & said You may also lose the practice of playing the Damru after 12 years
The innocent Lord Shiva in his anxiety just tried to play the Damru, if he could, and hearing the sound of Damru immediately there was rain n the farmer who was regularly working in the field got his crop emerged immediately and others were disappointed.

Debriefing of this story

The game is won during the practice, not during the performance. If you are waiting for the good opportunity before you start practicing, then you have lost the race.

“Practice is boring but that’s what makes your performance interesting”

I wonder how many of us are aware of this legal twist about Nominee and Nominations

I wonder how many of us are aware of this legal twist about Nominee and Nominations

 

Will your Nominee get the money on your death ?

Did you think that your nominee is the person, who will get all the money legally from your Life Insurance Policy and Mutual funds investments ?
Ha! That is exactly what you think if you are not aware of the legal aspects.
We assume a lot of things which sounds like they are obvious, but are not true from the legal point of view.

Today, we all concentrate on nominations in financial products.

*For whom are we earning ?*
*For whom are we investing ?*

*Who, do we want to leave all our wealth to, in case something happens to us ?*

It might be your children, your spouse, parents, siblings etc., or just a subset of these.
You also might want to exclude some people from your list of beneficiaries!.
So you think you will nominate person X in your Insurance policy, and when you are dead and gone, all the money goes to person X and he/she becomes the sole owner ? *You are wrong, dude !*
It does not work that way.

Let us see how it actually does!

*What is a Nominee ?*

According to law, a nominee is a trustee, *not* the owner of the assets.
In other words, he is *only a caretaker* of your assets.

The nominee will only hold your money/asset as a trustee and will be legally bound to transfer it to the legal heirs.

For most investments, a legal heir is entitled to the deceased’s assets.

For instance, Section 39 of the Insurance Act says the appointed nominee will be paid, though he may not be the legal heir.
The nominee, in turn, is supposed to hold the proceeds in trust and the legal heir can claim the money.

*A legal heir will be the one who is mentioned in the will.*
However, if a will is not made, then the legal heirs of the assets are decided according to the succession laws, where the structure is predefined on who gets how much.

For example, if a man during his lifetime executes a will… In the will, he mentions his wife and children as legal heirs, then after his death, his wife and children are the legal owners of his assets.

It is essential that one needs to execute a will.
It is the ultimate source of truth and replaces the succession law.

Nominee can also be one of the legal heirs.

*Important :*
Mention the Full Name, Address, age, relationship to yourself of the nominee.
Do not write the nomination in favour of wife and children as a class.
Give their specific names and particulars existing at that moment.
If the nominee is a minor, appoint a person who is a major as an appointee giving his full name, age, address and relationship to the nominee.

*Why is the concept of Nominee ?*

So you might be wondering, if the nominee does not become the sole owner, why does such a concept of a nominee exist at all ?

It is pretty simple. When you die, you want to make sure that the Insurance company, Mutual fund or your Shares should at least get out of the companies and go to someone you trust, and who can further help, in process of passing it to your legal heirs.

Otherwise, if a person dies and has not nominated anyone, your legal heirs will have to go through the process of producing all kind of certificates like death certificates, proof of relation etc., not to mention that the whole process is really cumbersome! (For each legal entity! The insurance company, the mutual funds, for the shares, for the real estate..) .
So, to simplify, if a nominee exists, these hassles do not happen, since the company is bound to transfer all your money or assets to the nominee.
The company then goes out of scene & then, it is between nominee and legal heirs.

*Example of Nomination :*

Ajay was 58 years old who died recently in an accident. As his children were settled, he wanted to make sure that his wife is the sole owner of all the monetary assets. This includes his insurance policy and mutual funds. So during his lifetime, he nominated his wife as a nominee in his term insurance policy and mutual funds investments. However, after Ajay’s death things did not turn up the way he wanted. The reason being Ajay did not leave a will. Though his wife was the nominee in all his movable assets, *as per the law, his wife, along with children, were the legal heirs and all of them had equal right to Ajay’s assets.

One simple step which could have saved the situation was that Ajay should have made a will which clearly stated that only his wife was entitled to get all the money and not his children.

*Nomination in Life Insurance :*

A policyholder can appoint multiple nominees and can also specify their shares in the policy proceeds. Nomination in life insurance has one limitation, as insurance policies are bought to secure your financial dependents, your first choice of nominee has to be your family members. In case you want to nominate a non-family member like a friend or third party, you will have to show/PROVE the insurance company that there is some insurable interest for the person. This happens because of a Clause called *PRINCIPAL OF INSURABLE INTEREST* in insurance. Note that provision of nomination in life insurance is related to Section 39 of the Insurance Act.

*Note that as per LIC website *

Nomination is a right conferred on the holder of a Policy of Life Assurance on his own life to appoint a person/s to receive policy moneys in the event of the policy becoming a claim by the assured’s death. The Nominee does not get any other benefit except to receive the policy moneys on the death of the Life Assured.
A nomination may be changed or cancelled by the life assured whenever he likes without the consent of the Nominee.

Make sure, you have a nominee for your policy for easy settlement of the claim, if you do not have any nominee mentioned in the policy, it can turn out to be a disaster for your dependents to get a claim.

*Nomination in Mutual Funds :*

In case of mutual funds, you can nominate up to three people, who can be registered at the time of purchasing the units. While filling in the application form, there is a provision to fill in the nomination details.

Even a minor can be a nominee, provided the guardian is specified in the nomination form.
You can also change nomination later by filling up a form which is available on the mutual fund company website.
*Nomination in mutual funds is at folio level and all units in the folio will be transferred to the nominee(s).* If an investor makes a further investment in the same folio, the nomination is applicable to the new units also.
A non-resident Indian can be a nominee, subject to the exchange control regulations in force from time to time.

*Nomination in Shares :*

*Quiz for you…*
Now you know what a Nominee means and who actually gets the money.
So if there is a husband H, with wife W and nephew N, and he has nominated his nephew N to be the nominee of his shares in demat account, who will have the legal right to own the shares after husband’s death ?  If you answer is wife, you are wrong in this case!

*In case of stocks, it does not work the usual way, if a will does not exist.*

In the verdict, Justice Roshan Dalvi struck down a petition filed by Harsha Nitin Kokate, who was seeking permission to sell some shares held by her late husband.
The Court noted that as she was not the nominee, she had no ownership rights over the shares. Ms Kokate’s lawyer had argued that as she was the heir of her husband who had died intestate (without a will), she should have ownership rights of the shares, and be able to do anything with them as she wished.
In this case, Ms Kokate’s husband had nominated his nephew in favour of the shares. Justice Dalvi however noted that under the provisions of the Companies Act and the Depositories Act, Acts which govern the transfer of shares, the role of a nominee was different.

A reading of Section 109(A) of the Companies Act and 9.11 of the Depositories Act makes it abundantly clear that the intent of the nomination is to vest the property in the shares which includes the ownership rights there under in the nominee upon nomination validly made as per the procedure prescribed, as has been done in this case.

It means that if you have not written a will, anyone who has been nominated by you for your shares will be the ultimate owner of those stocks. The succession laws on inheritance will not be applicable. but, in case, you have made a will, that will be the source of truth.

*Nomination in PPF :*

Let me give you some shock first. *If you have Rs 10 lakh in your public provident fund (PPF) account* and you have not nominated anyone for your PPF account, your legal heirs will get maximum of Rs1 lakh only!
Yes, it is so important to have a nominee, now you get it .

You can nominate one or more persons as nominee in PPF. *Form F* can be used to change or cancel a nomination for PPF.
Also note that you cannot nominate anyone if you open an account for a minor.

*Nomination in Saving/Current/FD/RD Account in Banks :*

FD’s also come with nomination facility. While opening a new account, there is a column for nomination in the same form and you should fill it. You can nominate two persons with first and second option. Note that in case you have not done any nomination till now, you should request Form No DA-1 from your Bank which is used to assign a nominee in future. (Examples of ICICI Bank , HDFC Bank , Canara Bank) .
In the same way to change/cancel the nomination, you need to fill up Form no DA-2.

*Read about Corporate Fixed Deposits :*

As per a famous case, A Bench of Justices Aftab Alam and R M Lodha in an order said that the money lying deposited in the account of the original depositor should be distributed among the claimants in accordance with the Succession Act of the respective community and the nominee cannot claim any absolute right over it.
*Section 45ZA(2)(Banking Regulation Act)* merely put the nominee in the shoes of the depositor after his death and clothes him with the exclusive right to receive the money lying in the account. It gives him all the rights of the depositors so far as the depositors account is concerned. *But, it by no stretch of imagination make the nominee the owner of the money lying in the account,* the Bench observed.

*CONCLUSION :*

Now you know!
Taking Personal finance for granted can be fatal!!!!!

Just investing knowledge, is not enough to have a great financial life.
You also need to be well versed with basic legal aspects and make sure you carry out all due arrangement .

*Nomination is one important aspect you should seriously consider, when checking for the financial products you have bought or plan to buy in future.*

Mistakes in Personal Finance :

It’s important to make sure that your loved ones do not face legal issues and only say and think lovely thoughts about you when you are not around, rather than crib & grumble.