subject: Why A Savings Plan Is Still A Selling Idea [print this page] With the world economy in its current sagging and jittery state, and as we all wait with bated breaths as to how the global financial crisis would be handled, we need to ensure that even a single penny matters.
Some of the basic prerequisites to amass a good amount of money for ones future include determining a goal with a clear time frame, making methodical contribution, being crystal clear about the anticipated returns in each of the instruments and the resultant impact on taxes over a period of time.
There are numerous options for saving plans offered in India. Many of them provide an investor with assured returns, good interest rates, tax savings and many more advantages. These plans not only help an investor in getting returns on his money but also render him financial safety at each stage of his life. It depends on his needs and goals as to which product is best suited for him.
The focus of an individual could be short-term or long-term savings for his future. In the former case, investing in government bonds, post offices or mutual funds constitute the best savings plans whereas investing in public provident funds or bank deposits (fixed/recurring) is recommended in the latter case.
All of these instruments can be managed online too. With the advent of technology, online saving plans are thus increasingly becoming a preferred choice.
Other instruments that may be considered in the present circumstances as both saving and investing options include:
Insurance plans, which ensure that the goal of returns is definitely achieved, even in case of death of the policyholder, where his beneficiary gets the benefit.
Unit linked insurance plans, where along with the coverage of risk, investment decisions too rest with the investor
Direct equity investing option, for investors who posses great financial acumen.
Investing in commodities like gold and silver. As a tip, when one invests in gold, he should avoid buying ornaments. He should rather invest in bullion biscuits and coins in order to avoid conversion costs.
Sometimes thinking about saving money is more difficult than actually doing it but then, if a person has got a savings plan to help him focus; he is well on his way.
