In personal finance, many a times, we use certain quick and easy calculations to find out investment or insurance related insights. ‘Rule of 72’ is one such calculation method to find out how many years it would take to double our investment given a certain compounding rate of return. But how accurate is the result? Can you trust the result for critical high value calculation? Read on. Let’s start with an example of using Rule of 72. Say we are assuming that our investment will giv..

What is the formula of finding future value of an investment? Let us talk plain arithmetic here. The formula is FUTURE VALUE = PRESENT VALUE OF INVESTMENT * (1 + ANNUAL COMPOUNDING RATE OF RETURN) ^ NUMBER of YEARS. What lessons can we learn from this seemingly easy looking formula? Let’s check. One thing is pretty clear from the above formula, if somehow, we can increase either present value of investment or rate of return or number of years – the overall future value would increa..

Any time is good time to invest – this sentence has almost become a common parlance for all investors like us and largely for long-term investors – this is true also. But not many are talking about right time to take our money out of investments. Whether you consider redemption as a part of personal finance strategies or as a need – it makes lot of sense to know a thing or two about redemption. **Following 3 things must be considered while making redemption from any investment:** ..

If you want to secure regular income payout throughout your life starting now or later – Annuity Plans (also often referred as Pension Plans) are worth to consider. Mostly such plans are opted by retirees. But even if someone continues to work and still want a regular payout for whatever reason – annuity plans can be opted. What are the options available? What do you must know before buying? Read on. **Immediate or deferred Annuity -** First thing first – decide whether you want re..