Category: Personal Finance

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Finance Minister Nirmala Sitharaman unveiled the ‘first budget of Amrit Kaal’ to instil fresh optimism, maintain reforms and ease of doing business, and lay the groundwork for India’s next 25 years of development into an economic superpower.

The budget includes significant capital investments in the agriculture and infrastructure sectors, as well as revised tax slabs that will benefit the taxpayer community.

Impact on your personal finance

Senior Citizen Savings Scheme investment limit increased

Budget 2023 increased the maximum investment amount for the Senior Citizen Savings Scheme (SCSS) from Rs. 15 lakh to Rs. 30 lakh. The government increased the interest rate on the Senior Citizens’ Savings Scheme (SCSS) to 8 percent for the fiscal quarter ending March 31, 2023.

The cap of Rs 15 lakh limit prevented many senior citizens from making use of the scheme, therefore this increase is a positive decision. The scheme is one of the most secure and trustworthy investing options for elderly citizens because it is a government-backed modest savings programme. It offers a high-interest rate and is one of the most advantageous investment options, especially when compared to more conventional ways such as FD (fixed deposits) and savings accounts. Fixed deposit rates are currently being hiked. However, this is a fantastic step for many senior citizens as they will be directly investing with the central government. There is also a tax deduction available up to Rs. 1.5 Lakh under section 80C of the Income Tax Act.

New tax regime 

Unless the taxpayer decides to choose the old regime, the new tax regime will be the default.

One must be cautious while picking which regime to follow. And if you do not choose the old regime, you will automatically fall under the new regime. Taxpayers who used to choose the old tax regime because of ongoing investments such as insurance premiums amounts invested in provident funds and public provident funds, and outgoings such as home loan EMIs, and tuition fees for children’s education, will have to choose the old regime. If they don’t, they will lose the benefit of these investments under various sections such as sections 80C, 80D, and so on.

Also Read: The ‘Goldilocks’ budget for growth

Enhancement of rebate under 87A

The new tax regime increased the section 87A rebate from the previous income threshold of Rs. 5 lakh to Rs. 7 lakh. Therefore, individuals with income up to Rs 7 lakh will not pay any tax.

Personal income tax rate

The basic exemption amount is increased under the new income tax regime in Budget 2023 from Rs 2.5 lakh to Rs 3 lakh. Additionally, the new tax …….

Source: https://news.google.com/__i/rss/rd/articles/CBMiiwFodHRwczovL3d3dy5mb3JiZXNpbmRpYS5jb20vYmxvZy9maW5hbmNlL2Zyb20tY2hhbmdlcy1pbi1uZXctdGF4LXJlZ2ltZS10by1jYXBpdGFsLWdhaW5zLWFuZC1tb3JlLWhvdy1idWRnZXQtMjAyMy1hZmZlY3RzLXBlcnNvbmFsLWZpbmFuY2Uv0gEA?oc=5

As the new year gets into full swing, the possibility of an upcoming recession still looms large and may feel like a big gray cloud hanging over your finances. But it’s not all doom and gloom. There can be ways to protect your portfolio and investments to weather the storm by using some subtle recession-proofing diversification tactics.

You’ve probably heard plenty of people go on and on about diversifying, and for good reason! When the economy and markets are as unpredictable as they are right now, your best bet for staying on top is to diversify wisely. But how should you diversify during a recession?

How a Recession Impacts the Stock Market and Investments

Typically, a recession leads to quieter returns across the board for most stocks and investment asset classes.

Some businesses and securities will still do great. Yet, who comes out on top is never a guarantee. Also, the high inflation and rising interest rates you’re seeing right now will play a role that’s yet to be fully determined and accounted for.

During a recession, investors tend to look for more “secure” options, which sometimes means bonds or Treasury bills. Or dividend-paying stocks that pay out a level of regular income.

This way, if there is little or no growth, investments can still generate a return that you can reinvest or spend. But remember, you don’t have to follow the pack. You can diversify and invest in other ways that suit your outlook and wealth-building goals.

Five Diversification Methods to Use in a Recession

Here are five strategies you can take on board to help with your portfolio if we stumble into a recession.

Source: https://news.google.com/__i/rss/rd/articles/CBMiV2h0dHBzOi8vd3d3LmtpcGxpbmdlci5jb20vaW52ZXN0aW5nL3dheXMtdG8tZGl2ZXJzaWZ5LXlvdXItcG9ydGZvbGlvLWR1cmluZy1hLXJlY2Vzc2lvbtIBAA?oc=5

Photo by Drazen Zigic on Freepik

Few choices in life rarely have a single “right” decision. However, when it comes to naming an executor of your estate, there are many ways to get it wrong. Foremost, an executor holds a position of complete trust and responsibility. Many people approach this choice using the same criteria they would for naming their children’s godparents, meaning they choose from among their closest relatives or oldest friends.  

However, godparents are largely ceremonial titles with few real responsibilities attached to them. They also might not be optimal people for the guardianship of one’s children, but I digress. (I wrote about selecting your children’s guardian in a previous post.)  

Fully grasping the role of executor is essential before deciding who will fill it. An executor is the fiduciary who, upon your passing, is responsible for managing every aspect of your estate. Often, an executor’s duties entail a great deal of work, such as tracking down and accounting for all of your assets and liabilities, paying expenses, and submitting your will to the court of jurisdiction for acceptance in the process known as probate. An executor is responsible as well for important tax elections, tax filings, and court accountings of income and expenses. An executor may need to initiate lawsuits on behalf of an estate.  

For these reasons and others to come, I recommend selecting an executor who is comfortable working with attorneys and certified public accountants (CPAs)—the latter because executors may need to obtain valuations for the estate’s real estate, financial, and business assets. In some cases, an executor may play the unenviable role of arbitrating family disputes, as ambiguity can exist in even the most well-drafted estate documents. 

 Generally, an executor’s responsibilities—which can last a minimum of two years and often much longer—end when all liabilities are collected, expenses are satisfied, assets of the estate are distributed (outright or by trust), and the final tax filings are accepted by the various authorities. 

Due to the meticulous nature of estate administration, the primary attributes of an effective executor include a high degree of integrity, personal responsibility, and attention to detail.   

As …….

Source: https://news.google.com/__i/rss/rd/articles/CBMiU2h0dHBzOi8vdGhlYmVya3NoaXJlZWRnZS5jb20vcGVyc29uYWwtZmluYW5jZS1jaG9vc2luZy1hbi1leGVjdXRvci1mb3IteW91ci1lc3RhdGUv0gEA?oc=5

As the U.S. economy teeters on the brink of a recession, you may be wondering how you can create a retirement income portfolio that will stand the test of time. Like many other pre-retirees or retirees, you were probably spooked by the stock market in 2022.

If your retirement income strategy involves yearly withdrawals from your investment portfolio to fund your lifestyle, a stock market decline like this one can negatively impact you. That’s because withdrawals on top of market declines can permanently impair your nest egg. That could mean reducing your lifestyle to avoid running out of money.

One way around this dilemma is to build a portfolio that creates a consistent source of reliable cash flow while allowing for capital appreciation potential. This strategy, coupled with a retirement plan based on a realistic assessment of retirement spending and optimized Social Security claiming, lays a foundation for success.

Subscribe to Kiplinger’s Personal Finance

Be a smarter, better informed investor.

Save up to 74%

Sign up for Kiplinger’s Free E-Newsletters

Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more – straight to your e-mail.

Profit and prosper with the best of expert advice – straight to your e-mail.

This article will discuss how an income-driven approach to retirement planning works as well as the benefits of employing it in your retirement income portfolio.

Establishing a Realistic Retirement Income Plan

To create a realistic retirement income plan, there are specific steps that place cash flow at the center of your retirement planning process, while avoiding chasing performance. These three steps are:

• Estimating your specific income needs based on your anticipated retirement lifestyle. This budget—or spending plan—should include non-discretionary and discretionary expenses. You’ll also want to cover other contingencies that arise in retirement, such as inflation, taxes and rising medical costs in later retirement.
• Optimizing Social Security and other sources of income involves determining what sources of income you’ll have as well as the best timing and sequence to activate those sources of income.
• Filling the income gap is then very simple. You subtract your anticipated income from the anticipated expenses to obtain that number. While there are many ways to generate this income, one includes an approach based on multiple dividend strategies and structured notes, which will be explained in the example below.

How Cash-Flow-Driven Retirement Planning Works

Let’s say that you’re preparing to retire. You’ve …….

Source: https://news.google.com/__i/rss/rd/articles/CBMiUWh0dHBzOi8vd3d3LmtpcGxpbmdlci5jb20vcmV0aXJlbWVudC9jcmVhdGUtcmV0aXJlbWVudC1pbmNvbWUtZHJpdmVuLWJ5LWNhc2gtZmxvd9IBAA?oc=5

Photo by Drazen Zigic on Freepik

Few choices in life rarely have a single “right” decision. However, when it comes to naming an executor of your estate, there are many ways to get it wrong. Foremost, an executor holds a position of complete trust and responsibility. Many people approach this choice using the same criteria they would for naming their children’s godparents, meaning they choose from among their closest relatives or oldest friends.  

However, godparents are largely ceremonial titles with few real responsibilities attached to them. They also might not be optimal people for the guardianship of one’s children, but I digress. (I wrote about selecting your children’s guardian in a previous post.)  

Fully grasping the role of executor is essential before deciding who will fill it. An executor is the fiduciary who, upon your passing, is responsible for managing every aspect of your estate. Often, an executor’s duties entail a great deal of work, such as tracking down and accounting for all of your assets and liabilities, paying expenses, and submitting your will to the court of jurisdiction for acceptance in the process known as probate. An executor is responsible as well for important tax elections, tax filings, and court accountings of income and expenses. An executor may need to initiate lawsuits on behalf of an estate.  

For these reasons and others to come, I recommend selecting an executor who is comfortable working with attorneys and certified public accountants (CPAs)—the latter because executors may need to obtain valuations for the estate’s real estate, financial, and business assets. In some cases, an executor may play the unenviable role of arbitrating family disputes, as ambiguity can exist in even the most well-drafted estate documents. 

 Generally, an executor’s responsibilities—which can last a minimum of two years and often much longer—end when all liabilities are collected, expenses are satisfied, assets of the estate are distributed (outright or by trust), and the final tax filings are accepted by the various authorities. 

Due to the meticulous nature of estate administration, the primary attributes of an effective executor include a high degree of integrity, personal responsibility, and attention to detail.   

As …….

Source: https://news.google.com/__i/rss/rd/articles/CBMiU2h0dHBzOi8vdGhlYmVya3NoaXJlZWRnZS5jb20vcGVyc29uYWwtZmluYW5jZS1jaG9vc2luZy1hbi1leGVjdXRvci1mb3IteW91ci1lc3RhdGUv0gEA?oc=5

As the U.S. economy teeters on the brink of a recession, you may be wondering how you can create a retirement income portfolio that will stand the test of time. Like many other pre-retirees or retirees, you were probably spooked by the stock market in 2022.

If your retirement income strategy involves yearly withdrawals from your investment portfolio to fund your lifestyle, a stock market decline like this one can negatively impact you. That’s because withdrawals on top of market declines can permanently impair your nest egg. That could mean reducing your lifestyle to avoid running out of money.

One way around this dilemma is to build a portfolio that creates a consistent source of reliable cash flow while allowing for capital appreciation potential. This strategy, coupled with a retirement plan based on a realistic assessment of retirement spending and optimized Social Security claiming, lays a foundation for success.

Subscribe to Kiplinger’s Personal Finance

Be a smarter, better informed investor.

Save up to 74%

Sign up for Kiplinger’s Free E-Newsletters

Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more – straight to your e-mail.

Profit and prosper with the best of expert advice – straight to your e-mail.

This article will discuss how an income-driven approach to retirement planning works as well as the benefits of employing it in your retirement income portfolio.

Establishing a Realistic Retirement Income Plan

To create a realistic retirement income plan, there are specific steps that place cash flow at the center of your retirement planning process, while avoiding chasing performance. These three steps are:

• Estimating your specific income needs based on your anticipated retirement lifestyle. This budget—or spending plan—should include non-discretionary and discretionary expenses. You’ll also want to cover other contingencies that arise in retirement, such as inflation, taxes and rising medical costs in later retirement.
• Optimizing Social Security and other sources of income involves determining what sources of income you’ll have as well as the best timing and sequence to activate those sources of income.
• Filling the income gap is then very simple. You subtract your anticipated income from the anticipated expenses to obtain that number. While there are many ways to generate this income, one includes an approach based on multiple dividend strategies and structured notes, which will be explained in the example below.

How Cash-Flow-Driven Retirement Planning Works

Let’s say that you’re preparing to retire. You’ve …….

Source: https://news.google.com/__i/rss/rd/articles/CBMiUWh0dHBzOi8vd3d3LmtpcGxpbmdlci5jb20vcmV0aXJlbWVudC9jcmVhdGUtcmV0aXJlbWVudC1pbmNvbWUtZHJpdmVuLWJ5LWNhc2gtZmxvd9IBAA?oc=5

Photo by Drazen Zigic on Freepik

Few choices in life rarely have a single “right” decision. However, when it comes to naming an executor of your estate, there are many ways to get it wrong. Foremost, an executor holds a position of complete trust and responsibility. Many people approach this choice using the same criteria they would for naming their children’s godparents, meaning they choose from among their closest relatives or oldest friends.  

However, godparents are largely ceremonial titles with few real responsibilities attached to them. They also might not be optimal people for the guardianship of one’s children, but I digress. (I wrote about selecting your children’s guardian in a previous post.)  

Fully grasping the role of executor is essential before deciding who will fill it. An executor is the fiduciary who, upon your passing, is responsible for managing every aspect of your estate. Often, an executor’s duties entail a great deal of work, such as tracking down and accounting for all of your assets and liabilities, paying expenses, and submitting your will to the court of jurisdiction for acceptance in the process known as probate. An executor is responsible as well for important tax elections, tax filings, and court accountings of income and expenses. An executor may need to initiate lawsuits on behalf of an estate.  

For these reasons and others to come, I recommend selecting an executor who is comfortable working with attorneys and certified public accountants (CPAs)—the latter because executors may need to obtain valuations for the estate’s real estate, financial, and business assets. In some cases, an executor may play the unenviable role of arbitrating family disputes, as ambiguity can exist in even the most well-drafted estate documents. 

 Generally, an executor’s responsibilities—which can last a minimum of two years and often much longer—end when all liabilities are collected, expenses are satisfied, assets of the estate are distributed (outright or by trust), and the final tax filings are accepted by the various authorities. 

Due to the meticulous nature of estate administration, the primary attributes of an effective executor include a high degree of integrity, personal responsibility, and attention to detail.   

As …….

Source: https://news.google.com/__i/rss/rd/articles/CBMiU2h0dHBzOi8vdGhlYmVya3NoaXJlZWRnZS5jb20vcGVyc29uYWwtZmluYW5jZS1jaG9vc2luZy1hbi1leGVjdXRvci1mb3IteW91ci1lc3RhdGUv0gEA?oc=5

As the U.S. economy teeters on the brink of a recession, you may be wondering how you can create a retirement income portfolio that will stand the test of time. Like many other pre-retirees or retirees, you were probably spooked by the stock market in 2022.

If your retirement income strategy involves yearly withdrawals from your investment portfolio to fund your lifestyle, a stock market decline like this one can negatively impact you. That’s because withdrawals on top of market declines can permanently impair your nest egg. That could mean reducing your lifestyle to avoid running out of money.

One way around this dilemma is to build a portfolio that creates a consistent source of reliable cash flow while allowing for capital appreciation potential. This strategy, coupled with a retirement plan based on a realistic assessment of retirement spending and optimized Social Security claiming, lays a foundation for success.

Subscribe to Kiplinger’s Personal Finance

Be a smarter, better informed investor.

Save up to 74%

Sign up for Kiplinger’s Free E-Newsletters

Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more – straight to your e-mail.

Profit and prosper with the best of expert advice – straight to your e-mail.

This article will discuss how an income-driven approach to retirement planning works as well as the benefits of employing it in your retirement income portfolio.

Establishing a Realistic Retirement Income Plan

To create a realistic retirement income plan, there are specific steps that place cash flow at the center of your retirement planning process, while avoiding chasing performance. These three steps are:

• Estimating your specific income needs based on your anticipated retirement lifestyle. This budget—or spending plan—should include non-discretionary and discretionary expenses. You’ll also want to cover other contingencies that arise in retirement, such as inflation, taxes and rising medical costs in later retirement.
• Optimizing Social Security and other sources of income involves determining what sources of income you’ll have as well as the best timing and sequence to activate those sources of income.
• Filling the income gap is then very simple. You subtract your anticipated income from the anticipated expenses to obtain that number. While there are many ways to generate this income, one includes an approach based on multiple dividend strategies and structured notes, which will be explained in the example below.

How Cash-Flow-Driven Retirement Planning Works

Let’s say that you’re preparing to retire. You’ve …….

Source: https://news.google.com/__i/rss/rd/articles/CBMiUWh0dHBzOi8vd3d3LmtpcGxpbmdlci5jb20vcmV0aXJlbWVudC9jcmVhdGUtcmV0aXJlbWVudC1pbmNvbWUtZHJpdmVuLWJ5LWNhc2gtZmxvd9IBAA?oc=5

Photo by Drazen Zigic on Freepik

Few choices in life rarely have a single “right” decision. However, when it comes to naming an executor of your estate, there are many ways to get it wrong. Foremost, an executor holds a position of complete trust and responsibility. Many people approach this choice using the same criteria they would for naming their children’s godparents, meaning they choose from among their closest relatives or oldest friends.  

However, godparents are largely ceremonial titles with few real responsibilities attached to them. They also might not be optimal people for the guardianship of one’s children, but I digress. (I wrote about selecting your children’s guardian in a previous post.)  

Fully grasping the role of executor is essential before deciding who will fill it. An executor is the fiduciary who, upon your passing, is responsible for managing every aspect of your estate. Often, an executor’s duties entail a great deal of work, such as tracking down and accounting for all of your assets and liabilities, paying expenses, and submitting your will to the court of jurisdiction for acceptance in the process known as probate. An executor is responsible as well for important tax elections, tax filings, and court accountings of income and expenses. An executor may need to initiate lawsuits on behalf of an estate.  

For these reasons and others to come, I recommend selecting an executor who is comfortable working with attorneys and certified public accountants (CPAs)—the latter because executors may need to obtain valuations for the estate’s real estate, financial, and business assets. In some cases, an executor may play the unenviable role of arbitrating family disputes, as ambiguity can exist in even the most well-drafted estate documents. 

 Generally, an executor’s responsibilities—which can last a minimum of two years and often much longer—end when all liabilities are collected, expenses are satisfied, assets of the estate are distributed (outright or by trust), and the final tax filings are accepted by the various authorities. 

Due to the meticulous nature of estate administration, the primary attributes of an effective executor include a high degree of integrity, personal responsibility, and attention to detail.   

As …….

Source: https://news.google.com/__i/rss/rd/articles/CBMiU2h0dHBzOi8vdGhlYmVya3NoaXJlZWRnZS5jb20vcGVyc29uYWwtZmluYW5jZS1jaG9vc2luZy1hbi1leGVjdXRvci1mb3IteW91ci1lc3RhdGUv0gEA?oc=5

As the U.S. economy teeters on the brink of a recession, you may be wondering how you can create a retirement income portfolio that will stand the test of time. Like many other pre-retirees or retirees, you were probably spooked by the stock market in 2022.

If your retirement income strategy involves yearly withdrawals from your investment portfolio to fund your lifestyle, a stock market decline like this one can negatively impact you. That’s because withdrawals on top of market declines can permanently impair your nest egg. That could mean reducing your lifestyle to avoid running out of money.

One way around this dilemma is to build a portfolio that creates a consistent source of reliable cash flow while allowing for capital appreciation potential. This strategy, coupled with a retirement plan based on a realistic assessment of retirement spending and optimized Social Security claiming, lays a foundation for success.

Subscribe to Kiplinger’s Personal Finance

Be a smarter, better informed investor.

Save up to 74%

Sign up for Kiplinger’s Free E-Newsletters

Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more – straight to your e-mail.

Profit and prosper with the best of expert advice – straight to your e-mail.

This article will discuss how an income-driven approach to retirement planning works as well as the benefits of employing it in your retirement income portfolio.

Establishing a Realistic Retirement Income Plan

To create a realistic retirement income plan, there are specific steps that place cash flow at the center of your retirement planning process, while avoiding chasing performance. These three steps are:

• Estimating your specific income needs based on your anticipated retirement lifestyle. This budget—or spending plan—should include non-discretionary and discretionary expenses. You’ll also want to cover other contingencies that arise in retirement, such as inflation, taxes and rising medical costs in later retirement.
• Optimizing Social Security and other sources of income involves determining what sources of income you’ll have as well as the best timing and sequence to activate those sources of income.
• Filling the income gap is then very simple. You subtract your anticipated income from the anticipated expenses to obtain that number. While there are many ways to generate this income, one includes an approach based on multiple dividend strategies and structured notes, which will be explained in the example below.

How Cash-Flow-Driven Retirement Planning Works

Let’s say that you’re preparing to retire. You’ve …….

Source: https://news.google.com/__i/rss/rd/articles/CBMiUWh0dHBzOi8vd3d3LmtpcGxpbmdlci5jb20vcmV0aXJlbWVudC9jcmVhdGUtcmV0aXJlbWVudC1pbmNvbWUtZHJpdmVuLWJ5LWNhc2gtZmxvd9IBAA?oc=5