Finally new financial year 2022-23 has arrived! Some of you have taken last-minute tax planning decisions at the end of the financial year 2021-22! In this highly competitive world there are salesman who are committed to their yearly targets and have suggested wrong products which are not suitable to you! In the hurry of the last-minute tax planning you won’t spare much time whether that product is suitable to you or not! This is the “Golden Opportunity” for the salesman to mis-sell their products! Do you think ever about this?
Some of you are forced by insurance agents(whether it might be life insurance or health insurance), mutual fund agents, Postal agents to invest in their respective field schemes. With hesitation and last minute rush to save tax, you would fall in their “trap”.
To protect yourself from these sales trap you should plan your tax planning at the beginning of the financial year. This would brings lot of relaxness and tension-free working life. By identifying your tax saving instruments in advance and invests systematically via mutual fund sips(ELSS)and PPF would help you earn decent returns than the last minute planning. This is because you are giving time to your investments to work in favor of you that too in easy monthly installments.
At the same time don’t ignore medical and life insurances. Though there are tax saving instruments don’t consider them only as tax saving products. Review your medical cover and life cover at the beginning of the financial year and contribute to them keeping “inflation” in mind. Don’t ignore the rising costs of hospitalisation expenses and take apt decision whether your medical cover would be sufficient according to the inflation or not.
Treat Health insurance and Life insurance as a part of financial planning, but not as a tax saving product at the end of the financial year. By taking insurance at the beginning of the financial year entitles sufficient coverage during the entire term(whole year). So take health and life insurance at the earliest, if possible Today itself!
By planning your investments in advance would make you to live peacefully and happily throughout your life. At the same time don’t ignore medical cover and life cover.
Do remember tax planning should not be considered only for tax saving purpose but as a part of financial planning. If you plan your finances in advance no one would mis-sell wrong products; it is in your hands to cross-check which product suits you , which product doesn’t. For that you have to spare few minutes of your free time to do proper financial planning. It would be better if you invests in suitable products from April itself with slogan- “Tax Planning is a part of Financial Planning”