Dispelling 4 Myths About Estate Planning

Some individuals wrongfully think they do not have significant assets that they can pass on to the future generations and undermine the importance of managing family wealth in india. This faulty approach apart from resulting in disputes between the person’s dependants can also lead to taxation issues. One of the most important aspects of private wealth management is estate planning. Whether you live in a modest one-bhk apartment or own multiple properties in posh locations around the country, designing and implementing an estate management plan must top your list of to-do-things. Estate planning in India is still not very popular, primarily due to the many misconceptions associated with it. To help spread awareness on the topic, the post lists some myths about estate planning and corresponding facts to penetrate the shroud of mystery engulfing it. Take a look.

1. “I’m too Young for Estate Planning”

Many people start thinking seriously about estate planning only when they reach a certain age or amass a certain amount of money in their bank account. Age, however, has very little correlation with estate planning. One thing is for sure; life is uncertain, which is why you must start estate planning at an early age and even with a lesser income.

2. “I Need Legal Help to Draft Documents” 
  

Though there is no denying the fact that drafting complex legal papers will require legal help, it is perfectly okay to adopt the DIY approach (especially if your family and financial situation is simple) to draft a simple will and power of attorney. Several sites offer templates to draft these documents. If you have a health condition, contact your hospital to get a health care directive.

3. “An Estate Plan Just Concerns Property and Belongings”

Many people wrongly believe that the scope of an estate plan is limited to managing their property and belongings. A detailed estate plan apart from covering these aspects also deals with personal matters, such as deciding the guardian of the kids in case the person dies or becomes incapacitated and is no longer in a position to care for their child. The person in their will can also mention their preferences about the type of medical treatment they intend to receive if they are unable to express their wish themselves.

4. “Estate Planning is a one time Process”

Many people wrongfully consider estate planning as a one time process and discount the importance of revisiting their estate planning strategy. Estate planning, however, is an ongoing process and changes in the person’s situation such as a death in the family, a change in their marital status (marriage or separation), birth of a child, an inheritance, or sale of business can impact their estate planning, which necessitates the need to revisiting the strategy.

Conclusion 

Estate planning helps you and your dependents get ready to face unforeseen situations. When embarking on a journey with your wealth manager to designing your customized estate management plan, stay clear of these myths to take informed, unbiased and prudent wealth management decisions.

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4 Ways to Save tax Legally for Salaried Individuals

The good thing about paying taxes is that you know the funds collected by the government will be used to finance existing and future projects in the infrastructure and health domain. However, the not so good thing about paying taxes is that it leaves you thousands of rupees poorer. That said, there is always a way out. Many taxation service providers in India offer professional consultation services to help their clients save tax by claiming deductions allowed by the government. If you are a salaried individual looking to save tax, hiring professional taxation services in India can be the way forward. Continuing the discussion, the post lists some ways in which you can save tax. Take a look.

1. Request Your Employer to Restructure Your Salary
   
   If you are spending money due to job related obligations, request your employer to restructure your salary. Some examples of such expenses are: buying a uniform, spending to entertain clients and buying and reading magazines for self development (as a part of your job responsibility). Your employer must pay for such expenses. Technically speaking, the amount you receive from the employer is not a part of your salary, which is why all such receivings are exempt. Request your employer to provide you a proof every month, which you will have to submit to claim deductions.
   
2. Invest to Reduce tax Burden
   
   Under Section 80C deductions, there are several investments that come with tax rebates. For example, you can claim deductions, if you:
   
   • Contribute to your EPF account
   • Deposit in your PPF account
   • Invest in different schemes such as: Senior Saving Schemes, National Saving Certificates and Sukanya Samriddhi Account.
    
3. Claim Deductions on Leave Travel Allowances and Medical Expenses
   
   You can claim exemption on some allowances provided by your employer to cover personal expenses such as  treatment costs. To claim exemption on this allowance, you will have to submit a copy of your medical bills. You can also claim exemption on medical expense of dependants. The amount must not exceed INR 15,000 in a financial year. Leave travel allowance provided by your employer is also tax-free, given the condition that:
   
   • You traveled when you were on leave
   • The travel destination is within India
   • You took the shortest traveling route
   • You did not travel more than two times in a block of four years. 
      
4. Claim tax Benefits on Rent Payment
   
   If you live in a rented accommodation, you can claim deductions on HRA, that can be partially or fully exempt from tax. If you live with your parents, you can pay them rent (which they must include in their return) to claim HRA exemption. To be able to claim this deduction, collect your rent receipts and compile them in a file. If your rent payment exceeds INR 1 Lakh in a financial year, you will have to submit a copy of your landlord’s PAN card and rent agreement.

Conclusion 

These are just some ways in which you can save tax. Buy health insurance for yourself or your family members to claim deductions up to INR 25,000. It is also advisable that you consult a professional tax services provider in India to learn about more deductions and design a tax saving strategy.

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4 Signs You are Dealing with the Wrong Tax Preparer

Understanding income tax laws is not easy for a layman. Every individual who earns, however, must pay their taxes, for which they have to file a tax return. That is why many taxpayers, especially HNWs who are short on time, hire a tax preparer to file their income tax returns. The bad news is that not all tax preparers have similar experience and knowledge as some are just luring taxpayers with false promotions, and offer no value for their fee. To ensure you do not end up hiring the wrong tax preparer, here are four tax preparer red flags to avoid.

1. Suggest You Deposit Your Money in a Different Account

It goes without saying that your tax refunds must go into your account. There are a few tax preparers who might suggest you to deposit this money in a different account, with reasons that the refund would arrive faster or it would be more convenient for you to get your money this way. Chances are, if you are not getting your money in your account, you are never going to get it. 

2. Promise of High Returns in the Same Situation

Tax refunds or deductions have not increased significantly over the years, instead there has been a rise in the percent of payable taxes in the past few years. That said, if a tax preparer is promising that they can get you higher tax return than last year, when the situation has not changed, they might be showing you incorrect figures. 

3. Fees Based on Refund Percentage 

Tax preparers who charge their fee on the basis of refund are more likely to be fraudsters. The fee of a tax preparer should ideally be based on other factors such as the type of tax return and its complexity. If the tax preparer you are working with, or about to hire, base their fee on the refund amount, watch out, as you might de dealing with the wrong person. 

4. Insist on Signing a Blank Form

Even if a tax preparer is filing the tax return on your behalf, you are liable for whatever information there is on your tax return form. Signing a blank paper is like signing a blank check. You may never know if the information that your tax preparer has entered is correct or false. Stay away from tax preparers who ask you to trust them and sign on the dotted line without worrying about the information present in the paper.

Conclusion

Many tax preparers offer false promises such as higher tax refunds and a guarantee of a refund by a certain date to sell their services. A few may even ask you to pay a health insurance penalty directly to them. That is why it is essential that you do not trust individuals who give you unreasonable promises, and look for those who would help you get your taxes right. If you need help to file your taxes, better hire a licensed professional such as an attorney, or a CPA (Certified Public Accountant). 

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Guide to Sector Investing: Enhance Your Financial Portfolio

Sector investing is considered one of the successful ways to enhance financial portfolio, while mitigating investment risks. Sectors are comprised of various companies with common business verticals, such as natural resources, technology, and financial services. The reason why sector investing could be the right approach to secure private wealth is the constantly changing nature of business sectors. If a particular sector is not performing well in the market, you can always move on to another sector, and then buy back your investment once you have made a substantial profit. To give you an overview on how sector investing works, here is a guide on the ways to enhance your portfolio with sector investing.

Sector Investing Strategies
Sector investment strategies depend majorly on your personal and financial objectives. Here are three ways you can implement sector investing.

Enhancing Portfolio
Portfolio enhancement is associated with utilizing a part of your investment to invest in a particular sector. This strategy either diversifies your investment projects or lets you venture into a new one.

Managing RisksRisk management is another approach towards sector investing, which focuses on reducing the overall investment risk to your investment portfolio. The reason why investors go down this path of investment is supported by the fact that the correlation between different industry sectors can be lower than those between general categories.

Completing the Portfolio
Portfolio completion targets those sectors that are missing on your portfolio. This strategy poses a challenge to identify promising opportunities in a sector that is not listed on your investment portfolio. A due diligence on your part and help from a wealth management firm can help you overcome such challenges.

Benefits of Sector Investing

Here are a few benefits of sector investing:

    Successful portfolio diversification

    Mitigating investment risks

    Exposure to significant expertise across the global credit markets

Challenges Ahead

    Lack of industry knowledge and developments

    Inability to identify promising investment opportunities

Need Help Investing?
If you are looking to invest your private wealth in multiple sectors, seeking the services of a reliable private wealth management firm will go a long way. A wealth management firm will help you make calculated decisions regarding your sector investment decisions. Though sector investing holds strong promises for a successful investment, you can try conventional options, and the firm can help you with any kind of investment you wish to make. If you need other financial services including private banking services anywhere near Gurgaon, Mumbai, and Bangalore, you will find reputed wealth management firms such as Client Associates.

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5 Timeless Tips to Successful Wealth Creation

Wealth creation, contradictory to the common notion of being a high-risk and time consuming process, is easy - provided you stay committed and make calculated decisions. Many high-value individuals were able to achieve their financial goals by staying focused and constantly exposing themselves to newer and better ways of wealth creation. There are a variety of wealth creation strategies that you can consider such as investing in a startup business. If you are wondering how to execute your wealth creation strategy for maximum profit and success, this post shares five timeless tips you must follow. Take a look.

Trust Your Gut
Once you have a wealth creation strategy on paper and are ready to execute it, the first step you must take is to listen to your gut. Your mind develops a sense of right and wrong over years by gaining experience through hardships. That is when your inner voice tells you something is wrong, and it is a wise decision to go over the part you doubt again.

Maintain Your Reputation
Building a brand name is essential to build relationships with other individuals and maintain a quality network. People will be willing to do business with you based on how ethical and successful your business seems. Your reputation is what helps you have an edge over any other business.

Follow Your Passion
Some of the most successful businesses are where an individual followed their passion, and not some mainstream business idea. The reason behind the success is that when you follow your passion, you make it a point to work wholeheartedly to ensure exponential business growth. When your passion is at work, your wealth is bound to multiply as per your expectations.

Don't Let Losses Discourage You
Wealth creation comes with both profit and loss. When you achieve a set goal of a profit margin, it is a sign that things are doing well. Any loss that you incur while executing your wealth creation strategy should not discourage you from moving forward with your plans, given that you smartly drafted the strategies.

Save More than You Spend
It is important to take a disciplined approach towards wealth creation for a guaranteed success. You need to maintain a balance between your expenditure and savings. You should ideally save more than you spend. In addition to this, you should track all your expenses and stick to the budget.

Conclusion
When it comes to multiplying your private wealth, the timeless tips mentioned in this blog will go a long way. Whether you wish to save for your retirement so that you can continue with the current comfortable lifestyle, or want your future generations to lead the same blessed life that you have, these wealth creation tips will help you. If you are looking for a wealth management firm to help you with your wealth creation strategies, there are reputable firms such as Client Associates, who have been helping high-value individuals for years.

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4 Factors to Consider when Hiring a Wealth Manager

A huge amount of money invested in a planned way ensures capital’s safety, and could generate a passive income. Whether you need to invest your money for later ROI or you need to find ways to multiply your wealth, a wealth manager could help you with both these goals. Before hiring a wealth management firm, there are a few basic yet essential factors that you need to consider to ensure your financial security and growth. This post lists four of those factors that need your consideration when hiring a wealth manager. Read on.

Your Personal and Financial Objectives
The first factor you need to consider are your personal and financial objectives. These objectives act as a basis for your wealth management planning, and let you plan an investment strategy to fulfill these goals. The objectives may include money for expanding your family, buying a house in future, or setting aside college fund for your kids. If you have a clarity about these objectives, it will be easy for you and the wealth manager to meet the expected goals.

Short-Term vs Long-Term Goals
The advice of a wealth manager is helpful, only when you are clear about the timeline of investment. If you wish to achieve short-term gains, a wealth manager can help you find investment opportunities that have high liquidity rate. If your goals are to receive long-term ROI, your wealth manager can find opportunities that hold potential for returns in the future.

Resource Network of the Firm
When it comes to hiring a reliable wealth management firm, you need to make sure that the firm has highly-qualified wealth managers and private bankers with years of experience assessing the market and helping high-value investors multiply their wealth. A rich resource network means that the firm will be able to provide you with diverse investment opportunities in different sectors of the market.

Scope of Services Provided by the Firm
Reliable wealth management firms provide wealth management services, along with other related services. The wealth management services may include family wealth planning, estate planning, and private equity investments. A good wealth management firm must have wealth managers who are efficient at protecting and multiplying your wealth.

Find Reliable Wealth Managers in India
If you are planning to invest your wealth, you will find reputable wealth management firms in India that offer an extensive range of wealth management services to high-value individuals. Though you may have abundance of wealth now, to make sure you enjoy the same lifestyle after the retirement, you need to seek the services of a wealth management firm. The firm will also ensure that your future generations have sufficient capital to get quality education and start their ventures.

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4 Factors that Drive Estate Planning to Benefit your Future Generations

Estate planning is the process where individuals prepare for the transfer of their wealth and assets after his or her death. Assets, life insurance, pensions, real estate, cars, and personal belongings are all part of one's estate, which they may pass on to their future generations. When transferring wealth to successive generations, you need to have an efficient strategy at place. An ill planned succession risks negative financial consequences for the family fortune and could lead to unnecessary stress and conflict among family members. To avoid any mistake and ensure that the process goes down smoothly, you can hire a family office in India that provides specialized family office services. To get you started, here is a list of four factors that you must consider while planning an estate. Read on.

1. Asset Evaluation

In order to ensure everything that can be liquidated is included in your asset planning, you need to do thorough evaluation of your assets, whether they are real estate, life insurance, superannuation funds, investments, vehicles or any other prized possessions. Prepare a comprehensive inventory of all the assets so that it is easy for you decide what you need to pass to your future generations.

2. Will Preparation

Making a will is an important part of the estate planning process, as it provides for the division of your property and also, if applicable, the care of any minor children. In addition, you must also have a living will as a part of your estate plan. This document gives instructions, dealing with the medical care that you wish to have or not have in an event where you are unable to act on your own accord.

3. Reduction of Taxable Assets

Estate and income taxes could take a significant portion of the assets you allot to your beneficiaries. A family office has lawyers and investment bankers to identify profitable investment opportunities that are tax deductible. This would ensure that your future generations are are not left with significant tax payments and are only entitled to the returns.

4. Your Beneficiaries’ Needs

The whole purpose of estate planning is to ensure that your successive generations have enough to lead a comfortable life or have enough capital to start any business venture they want. When designating beneficiaries, consider their future needs and spending habits. For instance, you can earmark trust funds to cover the expenditure of college tuition or special needs expenses.

Family Office in India for Estate Planning

Estate planning is something that an individual must not neglect, and to ensure that all your private wealth is passed on to your generations, you must have a detailed estate plan, especially when the stakes are high. An integrated family office has lawyers, taxation officers, and investment bankers, all in one place to ensure that your estate planning is done so as to provide maximum benefits to future generations.

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