And for a Friday with Markets in turmoil….. some thoughts on Wealth Protection….. wealth Bequeathing…..
These are VUCA times – Volatile, Uncertain, Complex and Ambiguous. One Tweet from Trump, another move by China and suddenly rupee has depreciated, Petrol prices hit the roof, overnight AAA rated bonds of ILFS have been degraded to “D” status and 900,000 Mn Rs in Default. VUCA times require you to be calm, control your expenses and keep your investment policy steady – 80 minus age only in Equities / Mutual Fund, Exhaust SCSS – 15 lakhs at 8%, PMVBY – 15 lakhs insurance and 60,000 annual interest. Keep your PPF Account going for an Emergency, max investment 1.5 lakhs per year but Tax free 8% interest. Have at least 30% of monthly expenses covered by FD interest still safe and sure. DO NOT follow Investment advisors and so called Relationship Managers. They churn your investments to get commissions. Just shun them.
All those who are 40+ and of course the Senior Citizens, must have written a Will. Your hard earned money must be Bequeathed as per your wish. Make sure all FDs and Insurance Policies you have a Nomination. In Mutual funds you can make up to three Nominations and change them as you wish. However for Equity Shares, it’s more complicated. Companies Act and Depositories Act come into play. You will need Nomination plus a clear mention of beneficiaries in the Will. For NRIs, lots of changes after FATCA and the various Bilateral treaties signed by India. Check with Experts. All pre-2016 information is obsolete. Many linkages and cross country legal requirements.
India is changing. Digitalisation and technology is improving productivity. Our Options are more. Let’s convert every risk into an opportunity. Let’s build a developed India, the healthy way, the legal way, the SEEGOS way.