Stop Paying Money to Hospitals

Stop paying money to hospitals

Shekar was extremely upset with the hospital bill. He did not know what to do. A small mistake had cost him a lot.

Shekar's son falls sick. Shekar rushes him to the hospital.

His 5 year old son was admitted in the hospital. Doctors had to conduct multiple tests to determine the cause of the illness. After 5 days, his son was discharged from the hospital with a big bill.

Big Bill

X rays, MRIs, medicines, consultation with multiple doctors, GST, recovery cost – the total bill came up to Rs.1,35,000/-

Shekar comes from a lower middle class family and had just paid the fees for both his sons. He had very little money in his bank.

He took loan and paid the bill.

He did not have enough to pay the hospital bill and had to borrow from relatives, take advance loan and pay off the bill. 

One small mistake of not buying health insurance cost him a lot.

BUY INSURANCE

His brother, Ganesh instructed him to “STOP PAYING MONEY TO HOSPITALS”.

He should have bought HEALTH INSURANCE

Ganesh told him that health insurance can ensure a cashless, secure future and a better experience with hospitals. Individual and family coverage can secure their future.

Ganesh recommended Right Horizons Financial Services PVT. Ltd to buy insurance and secure his family’s future.

So instead of Paying Hospital bills, take a wise step and choose the right insurance to focus on future Plans

Right Horizons’ core expertise includes Financial Planning, Mutual Funds, SIP, Insurance, Portfolio Management Services, Estate Planning, Retirement Plans, Child Education, Family Office, etc.,

Kindly visit our website for more details

Health is wealth. Get Insurance.

Call: + 91 9845399780

Visit: https://www.righthorizons.com/insurance-services/

Hey Woman! Take Charge Of Your Finances To Be Truly Independent

Take charge of your finances

Some Facts and Stats

  • Lack of sufficient funds and home responsibilities largely come in the way of women’s aspirations to start their own business/venture as per a study conducted by Nielsen for biscuit major Britannia.
  • A whopping 4% of women do not have a medical cover as per a survey conducted by Economic Times. Many separate studies across Indian states and cities have shown that women are wary of investing in the equity market.
  • On the positive side,
    • The number of Indian women investing in mutual fund schemes and stocks is on a rising trend which is a good sign.
    • 27% of the stock market investors are women.

 

Indian women have come a long way in terms of education, independence and self-identity. But the tendency to leave financial decisions in the hands of the men in their lives – son, husband, father is still quite prevalent. Though this has been changing, it is important that more women take charge of their financial life as there are many indicators that women are good investors – Why?

  • Indian women are historically and culturally well-versed with saving. Women save more and therefore can invest more.
  • Women are more risk-averse as compared to men. Therefore they perform in-depth research before investing their money. They stay away from risky products.
  • Women have more self-control. They are less prone to impulsive trading and over trading. Overtrading usually results in reduced performance portfolio.

 

But on the other hand, there are certain weaknesses that are inherent in women investors –

  • They are very conservative investors and this can lead to reduced overall portfolio returns.
  • On an average, women earn less. They also take breaks in their career. This leads to lesser funds available for investment. Since there is a smaller kitty, they prefer to invest in debt products which are secure but give less returns
  • They are busy with too many responsibilities of family and work that they do not find time to manage their finances.
  • Women are not part of discussions related to financial matters in social realm as some feel they do not know anything. Sometimes they are not included as it is assumed they do not know much. These discussions are sometimes closed men’s clubs or informal networks; which are not easy to get into.
  • Women are hesitant to ask for raises in salaries. They underplay their skills and achievements while negotiating for a pay package.
  • Women let emotions rule and end up helping friends and family financially without considering the dent it would do to their financial portfolio. It is of course good to help others in need but not at the cost of putting yourself in financial peril.

 

Women  have to play to their strengths and overcome their weaknesses and gain financial independence. Here are some steps that you can take to get involved in matters of personal finance –

  1. Get involved in the finances of the household by managing a budget. It is the simple task of tracking income expenses and savings. You will get an idea of how much is the monthly expenditure and if you can cut back on some expenses.
  2. Read up on personal finance. There are many personal finance websites and books that can be referred to.
  3. Start investing small amounts in different financial products with the guidance of an experienced investor or financial planner to understand how investments work, the returns and tax implications and tax saving opportunities.
  4. Set up financial goals and work towards achieving them. You will be really proud of yourself when you achieve it and gain confidence in financial matters.

 

Make your financial resolutions this Women’s Day to be truly independent

Key takeaways:

  • Women need to participate actively in financial matters. 
  • Personal financial freedom should be every woman’s goal.

 

This women’s day, Right Horizons offers a FREE financial planning session for women at Dialogues cafe, JP Nagar on March 9th, 3-5pm. To register, write to us at contactus@righthorizons.in or 9845399780.

Review Your Portfolio Before Investment Decisions In A Bear Market

Vinay’s portfolio has taken quite a beating. He had purchased YES Bank at a price of around Rs. 450 per share about 8-9 months back. Today the share is hovering around Rs. 168. Sintex Plastics, which he had purchased in December 2017, has lost about 60% of its value. His portfolios largely comprised of midcap stocks, have lost 40-60% value from their peak. His stock portfolio was doing very well at one point, based on which he significantly increased his investments into stocks. Now, he is unsure as to what to do. Should he buy more of the stocks that he has so that his costs can be averaged?

The stock market has seen quite a few crashes this year. It is highly volatile these days and in a bear phase. The mid and small cap indices lost between 25-35% in a short period. In a bear market, confidence is low and stock prices are not rangebound. They can swing wildly.

In case you are in such a dilemma, here are some action points to bear in mind before making a random or emotional decision –

Review and Adjust Your Portfolio

Its ideal to book profits on your portfolio and hold some cash for deployment on market falls.  You may still want to review the stocks and equity mutual funds in your portfolio so as to remove the duds. You might want to let go of the duds in your portfolio by taking advantage of bear market rallies.

If you have stocks that were bought because of tips, recommendations or just to make quick profits, review them and sell off those that do not seem to have the potential for giving good returns in the long run.  Look to buy good stocks that can gain strongly on a market recovery.

Avoid Panic Selling

Some of us panic and sell off stocks the moment we see that they are losing value. That may not be the best course of action for all stocks. It is not a good idea to exit quality stocks with a good long-term record and good cash flow, , especially at points when they have fallen sharply and their valuations become attractive again.

Don’t Miss Out On Buying Low

Averaging is a smart investment strategy, especially for diversified mutual funds and exchange-traded funds. Systematic Transfer Plans are good to supplement your SIPs when markets have fallen; and you are unable to predict the bottom of markets, but you know it is somewhere around the corner.

Most investors become too fearful on large market falls and miss out the opportunity of buying stocks at their best prices.  Keep in mind that the news flow is likely to very negative at such points.  At the same time, don’t fall into the trap of getting in too early. You can add more of blue chip stocks, high quality funds and ETFs when the prices are down.

Be Practical

If you don’t have the time or find it difficult to track individual stock and the market environment, stick to mutual funds. Seek professional advice if required.  Understand your portfolio, risk tolerance and risk capacity, so that you do not make any hasty decisions that you might regret later on. Work on a disciplined investment style that suits you.

It is difficult to time the market. So investors have to be patient and keep the right investment perspective before making decisions.

In the current market scenario, the prices have fallen quite a bit. It may be time to take some positions slowly. For example, one can invest in blue chip equity funds such as Mirae India Equity and Aditya Birla Sunlife Frontline funds in a phased manner, especially on corrections. One can use a combination of lump sum investment and SIPs to average the costs. When the markets move upward, they can sell off some positions and use that money to invest in debt instruments.

Key Takeaways

    • Understand your risk tolerance; Use an investment style that suits you
    • When markets are volatile, review your portfolio and sell off the bad quality stocks
    • Don’t Panic . Take advantage of market volatility
    • Stay Invested for the long term in fundamentally good stocks, mutual funds and ETFs. Increase allocations on lareger market falls.

Tax Rebate upto Rs 5 lakh: The real story

 

 

Ever since Interim Budget 2019, there is some confusion on whether there is income tax relief given to all citizens or not. Some people are convinced there is an income tax relief for all. Others say they have read or heard news reports about tax rebate relief.

For a common man with limited financial knowledge, all this can be very confusing. So, let us clear that confusion once and for all. The Budget has allowed individuals with taxable income up to Rs 5 lakh to get full tax rebate and so they pay zero tax. Read on to know more.

Tax slabs unchanged

There is no change in the income tax slabs. You must understand what is the difference between taxable income and total/gross income. Gross income includes all of the income a person has received during a financial year. This amount is not explicitly exempt from taxation. On the other hand, taxable income is the amount of income that is actually subject to taxation, after all deductions or exemptions. So, typically taxable income will be lower than gross/total income.

For a person aged below 60 years, up to Rs 2.5 lakh of their taxable income is not taxed.

Income between Rs 2.5 lakh to Rs 5 lakh is taxed at 5% of total income exceeding Rs 2.5 lakh. This tax comes to a maximum of Rs 12,500.

Income between Rs 5 lakh to Rs 10 lakh is taxed as at 20% of total income exceeding Rs 5 lakh.

Income above Rs 10 lakh is taxed at 30% of total income over Rs 10 lakh.

In the Interim Budget, these tax slabs remain the same. However, the Budget has allowed individuals with taxable income up to Rs 5 lakh to get full tax rebate under section 87A of the Income Tax Act.

Do remember for senior citizens aged 60 years and above but below 80 years, income up to Rs 3 lakh is exempt from tax. Income up to Rs 5 lakh is exempt from tax for super senior citizens (ie. aged 80 years and above).

Tax rebate is not tax cut for all

What does full tax rebate for those with taxable income of Rs 5 lakh mean? Read the example below.

Let us assume you, a person below 60 years, has a taxable income of Rs 5 lakh. As per income tax slabs, you fall in two slabs.

First, your income up to Rs 2.5 lakh is not taxed.

Second, the excess amount above Rs 2.5 lakh is taxed at 5% of the exceeding amount. Since your taxable income is Rs 5 lakh, this means you have Rs 2.5 lakh extra over the zero tax-slab.

At 5% income tax rate, the tax liability comes to Rs 12,500. However, the full tax rebate of up to Rs 12,500 given in the latest budget means you will also pay no tax!

But what if your taxable income is Rs 5.5 lakh or Rs 6 lakh or more? The moment your taxable income crosses Rs 5 lakh, then the rebate is not applicable for you.

If your taxable income is Rs 5.5 lakh, for example, your gross tax liability shoots up to Rs 23,400. For somebody with taxable income of Rs 6 lakh, the tax rises further to Rs 33,800.

In essence, all this means your tax liability rises sharply once you cross Rs 5 lakh taxable income zone. For earning just Rs 50,000 more than Rs 5 lakh (taxable income of Rs 5.5 lakh), your tax liability is nearly 47% on the extra Rs 50,000 income.

Importance of tax-planning

Under the new income tax rules, it becomes highly important to plan taxes properly and carefully. A small mistake can cost a lot as you can understand.

Not just the pay structure, full focus and attention needs to be given to tax planning.

Those in the marginal area (just above Rs 5 lakh taxable income) should use all the tax deductions available. This is so that such individuals are not taxed more just because they forgot to claim exemptions, or were not aware of how to lower tax dues.

So, try to consult a good financial planner and prepare your tax blue-print for this year and beyond.

Reach us at 9845399780 or contactus@righthorizons.in

Visit www.righthorizons.com