For people, investment is a sacred word. For many, investment implies some sort of’ obligatory’ savings from their income and money. Investment is part of a wider range of financial planning. It needs significant consideration and groundwork. Here we have described a number of significant rules for your finances.
- Make sure you do your homework well before investing your cash. It is “normal” to hear aggressive description in sales pitches. Most sales managers focus on “commissions won” and “company won,” which reflect their monthly objectives. So one can only hear from agents/sales managers the’ best case scenario.’
- Many sales agents and consultants attempt while making a sales pitch to make use of the individual’s vulnerability and absence of understanding. For example, why are term plans not still purchased by most people, despite being the cheapest type of insurance? Or why do IPOs from mutual funds have so much favour, even if their portfolios don’t suit?
- In terms of revenue, risk appetite and future plans one must comprehend one’s profile and investments in line with one another. Before investing in them, individuals need to understand the advantages of various products and how they fit into their financial portfolios. You should listen to advise from distinct locations, but after a thorough assessment, the final choice should remain with you. It is your own hard-earned cash, after all.
Keep your eyes and ears open all the time for your investment. Changes in the business situation or fresh product launches could provide opportunities. People shouldn’t lose a chance just because they didn’t realize it existed. Naturally, that means getting a bit updated with recent product trends and altering market circumstances and financial scenarios. In order to provide investment-relevant data and alternatives, you are not entirely at the mercy of the consultant/agent.
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- Ensure that you participate in critical phases when purchasing any economic product. For instance, while you take life insurance, make sure you fill in the proposal form personally. Insurance officials often fill up information such as the insured’s height and weight, his age, and his history of medicine, among other things, on the basis of their own judgment. They just tell the person to sign the form at the end.
- It is not realized by people that if differences are identified in the form of the proposition, claims may be rejected at a later point. It is not impossible for the insurance company to reject a claim like this. It is a failure of the agent to ask you to fill out the form yourself. You should complete it yourself after checking your information. All medical tests required should also be carefully performed. As previously stated, any “fake allegations” could eventually lead to refusals.
Inform your loved ones: This is particularly true for life insurance. Inform your loved ones when the policy is purchased. If something occurs to you, your wife or parents will be able to follow the life insurance business for claim proceedings. Life insurance usually doesn’t have to be so sacred that you don’t address the subject in the family. In your absence, all relevant parties (and concerned) must understand precisely what needs to be accomplished.
- Keep a logbook of your policy/investments on life insurance. People invest in diverse areas from life insurance (endowment, term schemes, ULIP), reciprocal fund and PPF / NSCs. Details about the same should be in a logbook. It is hard to remember or monitor investment information such as date of maturity, maturity value, and interest rate over an extended period. This logbook is a solution to this issue. Naturally, the logbook should be updated regularly to represent investments and reserves if it is to be efficient and helpful.
- The logbook should also contain information of the liabilities of a person, such as home loans, personal loans, the amount owing on these loans, EMI and corporate responsibility (where a person is running a company) between others. Also, your dependents (spouse, kids and parents) must be told about the logbook details. One significant reason for writing is that the wife understands exactly his / her economic condition in the event of an unfortunate eventuality. One would also not want someone from nowhere to come on a good day and claim family property on the basis of some doubtful pieces of evidence. Read more