barima

Dear Srikanth Ji,Thank you once again for providing me with your valuable advice. I was comfortable with the strategy (profit booking) and am willing to wait long time. However, beginning 2021 I may continue accumulating profit year on year instead of booking profit upon reaching targeted amount of Rs. 10L as was the practice in 2020. This is because of the substantial increase in income generated that will impact my taxes in US. This will be a better strategy I reckon in creating wealth and keeping taxable income slab in check. Your opinion on this will be much appreciated.I also looked at the Alternative investment in LIC. Its barely meeting the inflation and the returns are poor in comparison with my other investments. Thanks for the recommendation anyways.I totally understand the 2nd point highlighted in your response with respect to TDS.As to point 3 of your response, my daughter’s investment objective is wealth creation. Her risk profile is moderately high and time horizon is beyond 10 years. She is 43 years old and living with her husband and five children in US. They all are US citizen. She has a 4-year-old girl that is physically challenged and the proposed investment is basically targeted toward this child’s future.Best regardsMohammed Abdul Bari

On Answer for Advice on Debt Funds for SWP

Dear Sreekanth Ji,Thank you once again sir for your time and effort in replying to my queries. This is greatly appreciated. I will respond to each of your questionnaire listed.1.“You are booking profit----------it’s not wealth creation” ……..Yes, I am booking profit and using a tenth of it for my monthly expenses. The rest is reinvested. Its wealth creation isn’t it. By God’s grace since July 2020, I booked profit on an average of Rs. 10 Lakhs per month and have booked so far in excess of Rs. 50 Lakhs in five months (July to 1st week of Dec 2020). If I repatriate all of this to US it will hold me in good stead for over the next two years @ of Rs. 2L expenses per month (I don’t need two lakhs from the profit booked as am using one lakh of my rental income to compensate my monthly expense in US, in effect I just need one lakh from my investments), so if there is a phase that do not have positive returns, I still have done good with wealth creation and my monthly expense as well. Am I right sir? We are assuming here two years of continuous lean period; it will not be the case in reality, God forbid.2.May I know what do you mean by TDS………are you a tax assessee……Yes, I pay taxes in India and am a tax assessee and have been for the last ten years. Every time I book profit the Tax is Deducted at Source (TDS) which is 15% for short term gain and is deducted as depicted here from the statement I received after redemption. Sorry, I edited the rest of the info for security reason in case if it gets posted on your website.Hence, I believe my capital gain taxes are taken care off and I will not have to pay taxes on the capital gains again here in US. Is my assumption correct here or you feel that there is more than TDS?SWPs are treated as redemption & taxed………. Agree with you that SWP will attract tax and is payable in India. I have to tap my profits to repatriate funds to meet my expenses in US. I thought SWP would be on such channel for me to get the funds out, unless you have other suggestions for me please.3.No positive returns………please refer to explanation provided in 1 above. The bottom line is as long as my investments in India provide me with paying my mortgages & other expenses in US and the capital remains intact, creating wealth would then become secondary. Furthermore, at my age 69 years I am not looking to payoff 30 years home mortgage. My three children, a boy & two girls will take the call than. They are on the nominees list.4.Inherited property…….yes, your understanding is correct, she wants to sell the property and invest the proceeds in different investment avenues.Best RegardsMohammed Abdul Bari

On Answer for Advice on Debt Funds for SWP

Dear Mr. Sreekanth,Thank you sir once again for your valuable advice. Here is the reason for my investment in equity. My apologies for this lengthy missive. I needed to explain this to you.Long term investment to generate wealth and manage my monthly expenses in US. I need around $2000 per month to live and this includes my home & car mortgage payments. I don’t have any source of income in US. I am dependent on my investment income and income generated from rental properties in India. About 50% of my rental property income meets 50% of my expenses here in US the rest is utilized in India.I realized the returns from debt funds are not encouraging but if I book profit I need a safe place to park my funds to see me through my monthly payments here in US. If you know of a better place to park generated profit, please advise, it would be much appreciated.In the past I missed out on booking profits and lost opportunity to create wealth. Hence, the need to book profit every time I reach my intended target of Rs. 10 Lakhs. The advantage I feel here is I just pay TDS when booking profit in India and does not have to worry about paying dollars in US when filing tax returns due to DTAA. Though it increases my reported income in US tax filing, it will be within the allowable level.Like you, I do feel about being debt free and have been all through my 67 years of life (got into planned debt now at 68) but looking at the ROI generated versus interest 7.75% on mortgage payments I feel it will be a good opportunity to stay invested.The other way of looking at it is, if I completely pay off my mortgage payments say in the next three to five years especially home mortgage then I would have invested $180K in the house in addition to $50K down payment that I had made. My home is presently valued at around $255K. In the future, after me, if my three children on title deed decide to sell the property it may not be very easy as redeeming Equity/ Debt investments. Hence, I feel staying invested long term is a better options as it will generate wealth and simultaneously pay off my mortgage with capital in tact.Based on the above, please advise if I am heading in the right direction concerning my planned investments in my sunset years. I know experts recommend the debt investing route at my age but I want to think out of the box with proper planning and safeguard.I have one other query on investing: disposing off real estate property inherited by my daughter after my wife’s demise. She is a US citizen and interested in investing as well and asked me to help her with investment.Your advice on this will be very much appreciated.Warm regardsMohammed Abdul Bari

On Answer for Advice on Debt Funds for SWP

Thank you sir, your support is much appreciated.RegardsMohammed

On Answer for Retirement Fund & Legacy Planning

Thanks Sreekanth Ji for your response. Here are the details you looking for:Product Name: Canara HSBC OBC Life Insurance Platinum Plus PlanPremium: 5,00,000.00Frequency: YearlyPremium Period: 10 yearsThe objective was to provide substantial corpus for wife who is the nominee in the insurance plan.She was not a nominee in any of my previous investments. My three children were.After dissolving all my previous investments totaling Rs. 65,00,000,00 I just made two investments that I discussed with you in my previous emails. Wife is now the nominee in both these investments.My FD’s that I discussed with you (regarding legacy planning) earlier totaling Rs. 2,60,00,000.00, my three children are nominees in these.Thanks for your support again.RegardsMohammed

On Answer for Retirement Fund & Legacy Planning

Hi Srikanth Ji, just realized that my response to your question did not go thru. Was wondering all along why there was no response. Sorry about it.I did contact all the fee-based FP. One was not helpful the other two were but then I thought I need to find someone locally to discuss things on one on one level. Eventually I found one and accepted his service.Presently, I invested Rs. 40L with Icici Prudence mutual funds Financial & Banking and is doing good. The other investment of Rs.25K is with ASK PMS.Now, as I said in my earlier email I need your advice to invest 2.6cr expected from FDs in August 2019. I need your input on this please.Thanks & regardsMohammed

On Answer for Retirement Fund & Legacy Planning

Thank you Shreekanthji for your prompt response.

On Answer for Online Investment – MF

Thank you for your advice sir,it’s much appreciated. Regards

On Answer for Ageon Opportunity Fund

Hi sir, thanks again for your response. I have gone through the info provided by the link and have the following.1. How would a term insurance help me at my age (67) if I have to stop the ulip now, the first premium of Rs. 5 lakhs is already being paid and the second one is overdue?2. I already have substancial investments in mutual Funds & Sips.Looking forward to hearing from you soon please.RegardsMohammed

On Answer for Ageon Opportunity Fund

HiThanks for your quick response. It’s basically a long term investment for my two daughters and indirect investment for their kids (my grandchildren). Another thing I’d like to share with you is I am going for this investment by not renewing my existing ULIP of Rs. 5 lakhs/ annum with Canara HSBC Oriental Insurance where the Allocation & other charges are high.I know my existing first year investment with CanaraHSBC of Rs. 5 Lakhs will be locked for the next four years.So keeping this in mind please advise if am heading in the right direction.Regards Mohammed

On Answer for Ageon Opportunity Fund

Thank you so much. I presume you meant Proper ( Property) Asset Allocation.RegardsMohammed

On Answer for Direct Equity

Dear Uram,Is your question directed to Mr. Reddy? I am little confused here.RegardsMohammed

On Financial Planning Advice (Senior Citizen)

Thank you so much Mr.Reddy for your response.

On Answer for Which Mutual Funds to buy now?

Dear Mr. ReddyThank you so much for your advice. This is much appreciated. I will make a note of your observation and will keep track of the funds.Best RegardsMohammed

On Answer for Financial Planning Advice (Senior Citizen)

Thank you very much sir for your quick response and advice. I will highlight your recommendations to my wealth advisor. Your support is very much appreciated.RegardsMohammed

On Answer for Mutual Funds Portfolio

Thank you so much sir for your recommendation, this is very much appreciated. I am indebted to you for the advice.RegardsMohammed

On Answer for Mutual Funds Portfolio