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Friday, March 29 2024
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In the Snakes and Ladders of life, achieve your financial goals this way

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Life is just like the game of snakes and ladders, where the ladders represent the opportunities that take you closer to your goals, and the snakes stand for the obstacles you encounter.

While both life and the game have common elements that mark the trajectory, there is also a critical difference between the two. In the game, everything depends on chance, while in life, along with opportunity, your self-will and action too, have a bearing on your future. That is why, amidst the changing landscape of the board, your actions determine how you deal with both opportunities and obstacles.

This holds for all areas of life, where you set goals and try to chase them.

The same concept is genuine when it comes to achieving your financial goals also. You have many opportunities in the form of investment instruments that can help you live a life of financial security and stability. Along with this, one major obstacle that comes is in the form of taxes, which eat away your income and gains, impeding your progress in achieving your goals.

In such a case, the right wealth investment is the only way to achieve your financial goals in the best manner possible. So, let’s tell you how you can get this approach right to achieve your goals well-

1. Get on the right Ladders: build a wholesome portfolio

Various wealth investment instruments serve a different purpose in helping you enjoy a sense of security. Your financial portfolio will, thus, be a combination of investments that you hold with yourself. To maximize your gains and minimize your risks, you should aim to build a holistic portfolio that will include all the crucial instruments that can benefit your loved ones and you. Some of the instruments you should consist of are as follows-

  • Health Insurance: Given the exorbitant cost of medical care and the spike in health challenges today, a health cover is the first instrument that every investor must include in his/her portfolio. It will keep your family and you in a financial safety net, by paying you for medical care expenses, preventing you from a financial crisis.
  • Term Cover: If you wish that your family stays secure not only in your presence but also in absence, you can also include a term plan. This is one of the most affordable plans that guarantee to secure your family upon your demise, during the term, by providing them with the sum assured.
  • Monthly Income Scheme Plan: To compliment your regular income with additional gains, you should also invest in monthly income scheme plans such as ULIPs and mutual funds, which offer you the payout in the form of monthly income. Plans such as ULIP can help you build a huge corpus of funds over the years, which can later enable you to achieve big goals with much ease.
  • Retirement Plan: You can also include a retirement plan in your portfolio to make sure that you can enjoy the golden period of your life without any financial constraints.

2. Deal smartly with the Snakes: right tax planning 

Paying taxes is a mandatory obligation that you can’t avoid altogether. However, to achieve your financial goals, you should decisively plan your taxes. The Income Tax Act, 1960 offers various tax benefits in the form of deductions and exemptions, which can bring down your tax liability. 

Section 80 C of the Act allows exemption up to Rs. 1.5 lacs on investments like ULIP, provident fund, an equity-linked savings scheme, and several other instruments. If you have health insurance, then premium payment towards the same can allow you tax benefit of up to Rs.25,000, and if the policy is for your parents, then you can get a deduction of Rs.50,000. So, keeping in mind your specific needs, you can plan your investments to get maximum tax benefits. However, it would help if you didn’t buy a specific plan only because of tax saving.

3. Be on guard always: monitor your financial status

It is also essential to evaluate your investments as well as the prevailing market conditions from time to time. This will help you make changes or additions in your portfolio, helping you maximize your gains and minimize associated risk.

Say if you are ULIP holder, and you feel that the debt sources are not giving you high returns, then you can switch to equity funds or any other option. ULIP is a flexible instrument for investment insurance that will allow you to switch funds according to your preference. ULIP plans from reputable insurers like Max Life Insurance offer you the option to choose term period ranging from 5 to 30 years, along with five funds option and the benefit of making partial withdrawals.

4. Invest right to achieve your goals

Now that you know how you should go about with wealth investment set new financial goals for yourself. Buy all vital investments like health insurance and term plans to stay secure and include plans like ULIP if you want to build a corpus to achieve your long-held dreams.

So, climb the ladders and fight the snakes to achieve your financial goals the right way.

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