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Tips to help you frame investment strategies for 2009 – 3 January 8, 2009

Posted by dhirendra1972 in Age Bracket, Fixed Deposit, Health Insurance, Healthcare Expenses, Money Market Funds.
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Senior Citizens

While health  insurance is an important instrument for all age brackets, for senior citizens, it is simply indispensable.

“However, if you do not have a pre-existing policy, you may find it difficult to obtain a suitable one at this juncture. In such cases, you should create a corpus dedicated to meeting your healthcare expenses. Fixed deposits and money market funds, which offer the dual benefit of safety and liquidity, should make up this reserve,” says Mr Varma.

These instruments can also provide for your other short-term needs. This apart, 9% senior citizens’ savings scheme and post-office time deposits that promise safety as well as regular income should form part of your portfolio.

Many senior citizens are risk-averse and it’s better to stay that way in 2009. However, if you have surplus funds and additional income streams like rent or pension, you can consider equity and balanced funds to provide for capital appreciation. “What you should completely avoid is life insurance, especially Ulips. “We’ve seen 55-year-old individuals buying Ulips, which, apart from being expensive, are simply not required at this age,” says Mr Pandit.

 

ref: thetimesofindia

Tips to help you frame investment strategies for 2009 – 1 January 6, 2009

Posted by dhirendra1972 in Blue Chip Stock, Economic slowdown, Financial Responsibilities, Health Insurance, Life Insurance, Long-term Capital, Long-term goals, Lower Interest Rate, Realty Price, Turbulent market.
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Good morning friends!  There are some tips which I read  with reference to The Times of India.  I want to share this to everyone and I’m sure it will also help you a lot.

 

Depending on how you choose to look at it, 2009 could either be the harbinger of more bad news or offer a plethora of opportunities.

 

While an economic slowdown, turbulent market conditions and job/pay cuts will, no doubt, test your resilience, opportunities may come knocking in the form of correction in realty prices, lower interest rates on loans and attractive valuations of blue-chip stocks.

To capitalise on the opportunities and tackle the challenges during the year, you need to stick to an investment strategy based on your long-term goals and risk profile. Here are a few guidelines to help you frame one:

25 To 30-Year-Old  Singletons

Irrespective of the age bracket you belong to,  health insurance should figure prominently in your must-have list.

The need for life insurance for this category, however, will arise only if you have dependents. “In addition, you need to create a contingency fund, because this year, increments will be hard to come by, and the sword of job cuts will continue to hang over employees’ heads,” points out certified financial planner Amar Pandit.

While this piece of advice will be applicable to all classes of investors, youngsters who have just started their careers need to take it seriously as unlike other age groups, they may not have the luxury of existing investments to cushion the impact of tough times. Also, you will need to be thrifty when it comes to spending on consumption needs.

You should strive to save around 40% of your  income and direct most of it towards investments — mainly equities. “Although the asset allocation depends upon one’s risk profile and other needs, generally speaking, youngsters can take advantage of their youth and relatively fewer financial responsibilities to take on more risk and participate in long-term capital appreciation,” says Kartik Varma, co-founder, iTrust.in, a financial planning firm.

 

 

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