Simplus

Mr. Gerard Colaco: Everyone should own a residence of their own. This is most applicable of course, to those who are not fortunate to have already taken steps in this direction, and/or those who are not fortunate enough to be sure of inheriting a house or apartment. So you can say, a house or apartment is an essential part of any financial plan.

Mr. Gerard Colaco: Extinguishment of debt means getting rid of debt, or not getting into debt in the first place. It is important to distinguish between acceptable and unacceptable debt, productive and unproductive debt. Any debt which is designed to automatically end itself is better than debt which remains open indefinitely.

Mr. Gerard Colaco: Health/Medical insurance is compulsory for all. Life and property insurance are optional, to be taken only if you need them and to the extent that you need them.

This must be compulsorily taken for the whole family. It should be taken even if your employers provide you with a family cover.

Query: I have received a query from one of my NRI clients In the U.S. regarding the above subject. He says, he would have to disclose /pay tax in the USA on investments made in India. Since you have a sizeable number of clients based in the USA, I wanted to know if you have any details on this.

The link below sheds more light on the subject
http://www.irs.gov/businesses/small/article/0,,id=210244,00.html

Mr. Gerard Colaco: No insurance in the world is more wrongly sold than life insurance. We will discuss about whether you require it or not, later. First, let us have some ideas on insurance which are based upon the advice of some of the world’s best writers on financial planning, insurance and investment.