financial planning for 30% bracket individual

POSTED BY Pawan ON September 7, 2012 12:02 pm COMMENTS (5)

Hellow Manish ,

Congratulation for such a good blog.

here is my request…can you plan for a high tax bracket (30%)person ,
about investment , tax savings and planning for goals ultra short term
< 1yr, short term 1-3 years, mid term 3-5 years, long term 5-10 years
and far long term 10-15 years and retirement planning.

I have my options listed but need to comparision by return and tax
deduction (for 30%)

1. for < 1yr- ….options are  savings act, flexiFD (linked to SBA),
RD, FD, liquid MF,Short term DEbt MF, Gold ETF (I preffer Flexi FD-
liquidity with good returns , tax not a concern here  as that have to
be paid )

2. for 1-3 yrs- …SBA, FD, RD, short term Debt/ Income MF, long term
debt MF, Hybrid MF, Gold ETF, FMP, Bonds (I preffer Gold ETF, FD ,
debt MF- know gold and FD will give sure return  and Debt MF –  less
taxation  )

3. for 3-5 yrs- ….FD, long term debt MF,Hybrid MF, Gold ETF, FMP,
Bonds, Equity MF (I preffer combining gold, FMP and equity MF- still
worry that equity MF may cause loss)

4.. for 5-10 yrs- ……Tax saving FD, gold ETF,equity MF (I preffer
all of them )

5. for 10-15 yrs- ….gold ETF, equity MF, real estate (I preffer all of them )

My confusion is about hype of MFs– just saying keep in MF
don’t satisfy me as seen on track record they give less
in <1, 1-3 3-5 yrs duration than bank FDs, and over long term chances
of change of MF, market, govt policies and MF manager is there, which
can’t give me sleep in night.

I am a learner and very serious in asking this question, But because
of lot of mal-reading on internet got confused . I know here I will
get the honest and  a very detailed answer, so proceeding with this
question. Thanks in advance.

5 replies on this article “financial planning for 30% bracket individual”

  1. Pawan Shahane says:

    @ RAMESH- Dear, I like that post speaking of indian senario and mentality, I agree I also belong to that mentality. Middle class will always be feared of the unknown and will go comfortably with the known and non risky path (may be some calculated ??? risks).
    by the way , that blo is very good and I continue to read on that also, Your suggestion helped a lot thanks.

    @ Ashal- Dear , your help is truely appreciated, thanks for giving time for that. I didn’t feel it harsh but feel its truely honest answer.On introspection I agrees with you about the biases, but the reason I already written in the above para (mentality). But such questions are always in all of the persons mind and your answer is helping them to give athought on them and then rethink what’s the senario. My post helped me to get a clear thought and also must have helped others ,too : as ” THE MORE YOU WRITE PERSONAL THE MORE IT BECOME GENERAL”.
    AGAIN THANKS A LOT
    Still if you xcan spare some more time — can you elaborate on FD, RD, Debt MF, and Equity MF. Advicing do SIP, STP, SWP in HDFC top 200, HDFC equity and so on… doesn’t satisfy the mind (?).
    and I would like to know about MF debt , dynamic bond Fund and difference with FD or RD (you must be thinking I am again back to square one , but please take pain to guide this poor knowledge fellow)
    thanks in advance.

    note : ” THE MORE YOU WRITE PERSONAL THE MORE IT BECOME GENERAL”.

    1. Ramesh says:

      just read through the so many threads already in this forum. it may sound tedious, but a lot of info is there. once you get an overall idea, you can ask the specifics here.

    2. Dear Pawan, here are my views for you –

      1. Read past discussions in the forum. Read a lot. You are not the first person & also not the last to post such queries. 🙂

      2. Regarding your investments – Anything which is to be saved for under 4Y, should be in debt (FDs, RDs, Debt MFs). Anything above 4Y cut off should be in Eq. How much you are comfortable on your own for this set up, you should decide.

      Please share your views.

      Thanks

      Ashal

  2. Dear Pawan, do you want free lunches or want some serious stuff? For free lunches, please keep on reading. For serious stuff, please contact dear Manish on his e-mail id.

    Why I’m saying so, you may question me? Your own query forces me to write it.
    Quote –
    “I am a learner and very serious in asking this question, But because
    of lot of mal-reading on internet got confused . I know here I will
    get the honest and a very detailed answer, so proceeding with this
    question. Thanks in advance.”

    Unquote-
    How ‘ll you differentiate between quality advise given to you for your own requirement & the generic ones? Your answer ‘ll be – I w’d decide on my own which is good for me. In this case you ‘ll follow only that advise which is confirming your own biases & anything not falling within your biases or expectations, ‘ll be ignored by you, no matter how good it is for you or may be good in the long term.

    I’m sorry in advance if you feel my post harsh or too much preaching in it. I do want to help you, that’s why writing all this.

    Thanks

    Ashal

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Download Our FREE Ebook!

Available only for first 100 people today

Download Our FREE Ebook!

Available only for first 100 people today