Plan on Time to Maximise Year-End Savings

Aug 10, 2018 | 1 year ago | Read Time: 2 minutes | By iKnowledge Team

Father Time has been cruel to tennis players. The legends of the sport have seen their powers diminish by the time they are in their late 20s or early 30s. The cut and thrust of the sport is such that it has reduced the former greats to a shadow of their former selves in the later part of their career. So, how has Roger Federer, who is in his mid-30s, managed to win three of the last four grand slams he has played? How has the grizzled veteran continued to weave magic with his wand of a racquet and have us stupefied in the winter of his career? The answer to this is planning. He has planned his schedule in such a way that it ensures he continues to perform at the sublime level.

Planning can do wonders. It can make our lives simpler and seem effortless. It is no different when it comes to planning your investments. If you can spend some time to plan, you’ll realise how much money you can save at year-end. But don’t fret if you don’t know where to start from. This article will give you clues that can help you in your journey.

Keep a track of the annual budget

The country’s finance minister delivers a budget speech on February 1 every year. The two-hour speech may seem laborious, the language may throw you off, but hang in tight. That’s because the budget is a one-stop knowledge centre for ways to saving tax. The government imposes or modifies existing tax laws during the annual budget. It gives you clues as to which investment options can help you save tax.

Just to give you a perspective, there are investment options like unit-linked insurance plans (ULIPs) and life insurance policies that can help you save tax up to Rs 1.5 lakh in 2018-19.

Keep your eyes open for discounts

A little bit of planning and research can help you find investment options that may offer discounts. For instance, some insurers offer a discount if you pay the entire year’s premium in one go. Let’s say you have the option of paying Rs 100 premium every month and a one-time annual premium payment of Rs 1,000, it is better to opt for the second option because you can save Rs 200.

Time your investments right

Planning beforehand also allows you to time your investments in a way that can help you save tax. One such option is if you purchase a new insurance policy in the month of March. There is a grace period of one month to make the premium payment for every insurance policy. So, you can defer the premium payment till April when the new financial year begins. This can be an option if you have already invested Rs 1.5 lakh, which is the tax deduction limit, in the current financial year.

To sum up, meticulous planning can buy you time to make the right decisions. It can guide you towards an investment option that can help you save money at the year-end. Just like Roger Federer has been able to save himself for his last hurrah.

To know about AegonLife’s saving plans and other products like ULIPs, visit our home page.

Advt. no.: IA/Jul 2018/4255


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