#newtaxregime - good or bad?
The debate has just begun.
Firstly, no sensible person saves or invests to avoid taxes.
We do it because we know we need to.
It's for our own good.
By investing a part of our income, we ensure we have enough money when our income stops or reduces.1/n
The debate has just begun.
Firstly, no sensible person saves or invests to avoid taxes.
We do it because we know we need to.
It's for our own good.
By investing a part of our income, we ensure we have enough money when our income stops or reduces.1/n
When we invest for our future, we need to have a plan.
We need to have measurement.
We need flexibility.
We need to practice a blended approach.
When one studies what people did with their tax savings, it will be amply clear their investing lacked on these critical needs. 2/n
We need to have measurement.
We need flexibility.
We need to practice a blended approach.
When one studies what people did with their tax savings, it will be amply clear their investing lacked on these critical needs. 2/n
Here are some glaring blunders.
Firstly, look at insurance.
Most people were missold insurance.
Yet they ended up being under insured.
People bought 50k worth of insurance policies.
Yet, they weren't even insured for 1 cr .
They saved taxes. But, still were exposed to risks. 3/n
Firstly, look at insurance.
Most people were missold insurance.
Yet they ended up being under insured.
People bought 50k worth of insurance policies.
Yet, they weren't even insured for 1 cr .
They saved taxes. But, still were exposed to risks. 3/n
ELSS is another story.
Most people never let ELSS investments compound beyond 3 years. They recycled it.
So the same money was rotated to save taxes.
The appreciation was skimmed off as dividends.
End result- only tax saving.
Very limited wealth creation. No compounding.4/n
Most people never let ELSS investments compound beyond 3 years. They recycled it.
So the same money was rotated to save taxes.
The appreciation was skimmed off as dividends.
End result- only tax saving.
Very limited wealth creation. No compounding.4/n
PPF was probably the best chance in compounding. Locking investment for 15 years was its strength. But, it gradually lost sheen as debt investing stopped appealing to GenX. They don't want stick to investing in PPF year after year. Erratic investment in PPF serves no purpose. 5/n
Misselling was rampantly impacting tax saving investments in insurance. If a banker wrongly sold you a ULIP or money-back or endowment, you got stuck in it. You lost years. Also, if you wish to correct the mistake, you actually lost some money already invested as tax savings. 6/n
What does #newtaxregime do?
It leaves it to you.
Puts more money in your hands.
You can choose now.
You can take a term.
Do a SIP.
Get #healthinsurance.
Invest in debt/PPF/EPF.
Create a balanced portfolio.
Avoid misallocating money.
Allow compounding.
Measure and grow.7/n
It leaves it to you.
Puts more money in your hands.
You can choose now.
You can take a term.
Do a SIP.
Get #healthinsurance.
Invest in debt/PPF/EPF.
Create a balanced portfolio.
Avoid misallocating money.
Allow compounding.
Measure and grow.7/n
Importantly, you will think beyond taxes while making your critical investment decisions. You will start seeing the merit of the decisions far more clearly.
You will be more critical. But you will also become more conscious. And, you cannot escape becoming more responsible.8/n
You will be more critical. But you will also become more conscious. And, you cannot escape becoming more responsible.8/n
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