Also if held for the long term, you also stand to save on the capital gains tax. Capital gains are the gains you make on your investment after deducting the inflation. As you continue to hold the investment for a long term, the compounding increases. At the same time, the rate of inflation goes up.
It is a cycle. When there is a boom, there is always a crash around the corner. Real estate prices became sky scrapers by themselves and the inevitable, a stabilization and correction of prices was bound to follow. People whose lives have seen more than one recession have come to terms with it and have… Read More »
EPF and PPF are cases of classic asset class mismatch – they are savings tools which are implemented for the long term. So technically they are not ideal investment avenues. However as a salaried person, one does not have an option not to invest in EPF. One could make withdrawals for suitable alternative investments if… Read More »
The Rameshs currently are saving/investing only about 14% of their total income. This is way below the national average of 28%. They need to create a budget tracker and enter details on a regular basis to find where they are spending more. They need to start this immediately as they will face a severe cash… Read More »