What is the best investment stradergy?
You should invest in stocks, bonds, and money market funds. You want to buy a diversified portfolio of stocks, as individual stocks are too risky. For most folks this means buying mutual funds. I like Vanguard.com, other people like Fidelity, TIAA-CREF, and DFA. Buy no-load, low cost funds. If you are like most people you will invest part of your money aggressively in stock funds, and part conservatively in money market funds and bond funds. Vanguard.com has an on-line questionnaire which will give you an idea how aggressive you want to be. If your company offers a 401K plan at work, try to invest the most you can. The money grows tax free, and some companies will match your contribution. Investing in a mutual fund IRA is also a good idea. I like index funds. Because of their broad diversification, you are less likely to have a dramatic drop in value. They also have the lowest expenses. For stock funds, I would suggest putting ~70-80% of your money in the Vanguard Total Stock Market Index Fund. and ~20-30% in a foreign stock index fund. However, there are many different opinions out there on what the best mutual funds are. Read the links below and form your own opinion. If you have high-interest debt, like credit cards, it is best to pay this off first before trying most of the investment ideas above. You should also have 3-6 months of salary saved up as an emergency fund in a bank or money market fund before trying more risky investments. Believing advice you get on Yahoo answers can be risky, so read these websites for further information. If you find it too confusing, contact a professional financial advisor. They will charge you significant commissions, however. Sources: http://www.vanguard.com/VGApp/hnw/planningeducation http://www.dallasnews.com/sharedcontent/dws/bus/scottburns/columns/2007/vitindex.html http://www.fool.com/school.htm http://sec.gov/investor/pubs/assetallocation.htm https://flagship.vanguard.com/VGApp/hnw/FundsInvQuestionnaire?cbdInitTransUrl=https%3A//flagship.vanguard.com/VGApp/hnw/planningeducation/education
Is it mandatory to file Income Tax Return if I have a PAN but no income?
If you were to consult an auditor he might say NO to filing taxes since you don't have income at present, but he doesn't know your future plans, which might include the plan to go abroad for higher studies or that once you start investing you might make losses and you need to offset them. Due to these circumstances, there are benefits of filing tax returns and you should do so.The biggest benefit is that it helps when you apply for a loan in future or when you apply for a visa. For any home loan, vehicle loan, car loan, etc, most lenders ask for proof of tax returns of the previous three years. So, if you have just entered the work force and at Rs 20,000 a month, your annual salary is below the taxable limit of Rs 5.0 lakhs, you are not required to file returns. But, it is useful to do so because you can build proof of your finances. Even if you are applying for a loan as a co-borrower, the return will serve as proof of your income.Similarly, if you are planning to travel abroad, tax returns are required while applying for a Visa. For Schengen Visa, it is mandatory to support visa documents with the last 3 years of tax filing, even if it is zero income.Another reason why it is mandatory to file returns is to claim tax refund or set off losses. For instance, if you have suffered losses from stock market transactions and you want to carry it forward to the next year, you must file for a refund, even if your annual income is below the taxable limit.In another instance, despite your income being below the taxable limit, your employer has cut TDS (tax deducted at source), 0r you earned some money through freelance work and the company deducted TDS at 10 per cent. But since your income is lower than the taxable limit, you are entitled for a refund. For claiming this refund, you have to file a return.Considering all these future benefits, it is better to file your tax returns from this year.
Is 401K/IRA investment a huge scam?
I've been heavily investing into my 401K/IRA for the last 15 years. I did some calculation - my money basically hasn't changed at all. Sure it went up as much as 80% then it shrinked 50% and now I am back to square one. I would have done better if I have left everything in the savings. I had my money basically in the mutual funds, mixed with bond fund, large cap stock, small cap stock, some tech, some foreign, but it didn't matter. So I am thinking: if a lot of people investing in these muni, why would it ever go up? Are these muni a way to make a living for the so called "financial advisers" "fund managers"?? If so, is there way for "we the people" to win?
I have 90 lakhs. I am in Hyderabad. What is the best way to invest. I am looking for long term investment. Can you please guide me?
My answer can and will sound rude to a lot of people but it is OK. Let’s beginFirst of all, if you have 90L rupees then be silent. Do not speak it out in public forums like this. My wisdom says if I am worth some amount say ( $1 million ) I will know how to manage it. It’s when you get money from sources like paternal property, lottery, black money or anything which you have not earned, creates a problem of managing. When you start posting these things on Quora and other public forums, there are many parasites who are searching for hosts and they will start giving you their services. Two things you remember,Never invest your money in anything which you don’t believe in. Be it, stocks, mutual funds, real estate or anything. You are the master of that money if you lose it on someone’s advice, they will not take its responsibility. They will take their cut and leave. Do your homework and move ahead. If someone is earning money from real estate then it's not compulsory that you will also earn, same with stocks and mutual funds. Invest time in reading and see what will work for you.Always remember 1.I personally invest in stocks and mutual funds too but I do not do it on others advice. I do my research.My advice to you :P(I again became a parasite, not really!) ——-> Keep some liquid fund in your SB account and rest keep in FD and sit back and read about various options). Go to various advisers give some fees, just discuss what they say, analyze it. In short, just brainstorm and then decide on something. Do not take tips and pieces of advice. Good luck!If you have big money, then learn to manage it. Do not let others take the driver's seat. Drive your car on your own.Comment section is spammed by people looking for money as I told in this answer. I am blocking further comments.
28. What best financial advice can you give me in order to create fix-income from other investment sources, not just working a 9-5pm job?
As I understand you are looking for generating an alternative source of steady income along with your primary source of income.Now, asking this question would be like going to a doctor and asking for medicines without a proper diagnosis.Now, a lot of factors are involved in choosing your investments as that varies from person to person. So, similarly the approach will also vary.First thing to consider is to know what you are investing for. Quantify your goals, know the goal target amount and define a time horizon to achieve the goal.Secondly, once you know what you are investing for then consider your risk appetite. Know how much risk you are willing to take to achieve the respective goal.Thirdly, analyse every investment even before you make the investment and have a thorough knowledge of its performance over period of time.Read about the market every day and know about assets allocation in time of emergency or when your investment is not working the way you want it to.Lastly, understand the basic concept of Compound Interest, so that you yourself can calculate your returns over a period of time.Read more financial books, journals and blogs, take control of your monthly budget, save at least 30% of your monthly income and invest that money, keep track of your investments, and most importantly have a financial plan in place. Read more and ask questions. We have a habit of not reading the fine print. Also we don't read about financial matters often, or at all. Read magazines, blogs such as this one, search online, and when you're talking to someone about investments, read the details of the investment - the terms and conditions, the charges, liquidity options, penalties, etc. Without this you'll always be illiterate and others will take advantage of that by selling you products that don't suit your requirement but earns them good commissions.All these factors would be the basics but a must. It would give you a clear idea of how much to invest, where to invest and for how long to continue that investment.Please click CapitalQuotient: A financial platform built to secure your future. to know more now!
What is the best investment plan to invest 20 lacs rupees for monthly income?
Since you want a regular income from your 20 lakhs, you can consider the following options…Option 1 :Invest in a commercial property which has good rental yield it could be an office space or shop space,Returns : Low Possibility of generating inflation adjusted returns(considering incremental rent + Capital appreciation less taxes and maintenance)Risk : Moderate to High,Liquidity : Very lowOption 2 :Post office MIS/Monthly Income Plan(MIP) from mutual funds/Tax free Bonds/NCDs/Corporate FDs/Bank FDsReturns : Inflation adjusted returns not possible(except in case of MIPs which will have a small percentage of equity)Risk : Low to moderateLiquidity : Moderate to HighOption 3 :Lend your money on a peer to peer lending platform.Returns : Inflation adjusted & moreRisk : Very HighLiquidity : you can define the tenureStill confused? for prudent money management ideas Money Management SoftwarePost Office Small Savings Schemes-interest rates 2016-https://www.mymoneysage.in/blog/...
Why is expected income a large factor in choosing a retirement plan in which to invest?
Because you will be investing in it for the rest of your life. The yields should match the amount you are able to contribute.