Meet Rashmi, Co-Founder of Storytellers 101 Communications, India’s only remote working PR (Public Relations) company.
Rashmi had an immediate need to optimise her short term investments.
Being ‘loan free’ her financial goals are to have enough money for her son to ensure he has a safe and secure future. And with life throwing curve balls at regular intervals, she wants to be financially prepared for them to continue living at their existing lifestyle and be prepared for the old age.
“I want to know I’m secure for the future. At present, I feel healthy and fit to constantly keep working and being at it. But times does catch up and when it does I want to be in a financially sound position where working is not a necessity but an option.
My son’s vocational courses and eventually settling of his own life will happen in due course and I want to be there offering him all the possible options to explore.
Investing history pre Cube Wealth
“In my initial years of working as I was busy learning the ropes of my profession, financial investments were made by family members and the CA somehow did the rest. Once I put in a decent number of years I began investing through advisors who in time I figured out were not thinking of basic elements like tax saving or the need for liquid funds.Eventually, I began my journey as an entrepreneur and suddenly money management became crucial. It could not just be managing funds but effectively managing funds to enable a stress-free future.
My previous advisors would put most of my money in Mutual Funds and ULIPs (Unit Link Insurance Plan). Of these, I was ok with Mutual Funds but ULIPs were really not smart. I would be updated on the returns every 6 months, but more than that would be done but with reluctance. – I would be updated on the returns every 6 months, but more than that the request would be done with reluctance.”
Rashmi’s Mutual Fund Portfolio returned around 12% average per annum which wasn’t going to assure her lifestyle in years to come. Rashmi was never able to claim tax reduction from her ULIP because it wasn’t in her name. Any gains from this investment are also taxable, the lock-in minimum is 5 years and the fee structure is complex. She also kept emergency funds in a bank account earning approx. 3% which means she was losing money to the rate of inflation here in India.
The cold hard facts
Rashmi wasn’t getting the best returns, was only invested in Mutual Funds for long term growth, had support to set up a short term portfolio so her savings would earn for her and wasn’t getting the support she needed to reduce her taxable income despite purchasing a ULIP. She was frustrated that any access to her investments performance before the scheduled 6-month wasn’t available. And that she wasn’t able to get service when she needed it outside of these biannual calendar appointments.
Mutual Funds - Debt
Mutual Funds - ELSS
How these options optimise Rashmi's short term investments
Rashmi wanted to focus on the next 2-3 years and get her tax affairs in order. She’s prioritised this as her goal for the next 12 months then look at her long term wealth creation options.
“I’ve never heard of the concept of a short term portfolio. Given I’ve already got some long term investments in place, I wanted to sort out the next 2-3 years by trying new investments and getting the tax reductions I’m entitled to. This also fits with my cash flow as an entrepreneur and helping my son out with some large expenses like laptops and school trips.”
Liquid Funds essentially replace a bank account to earn 7% instead of the 3% Rashmi is currently earning. She can access up to ₹50,000 in 30 minutes so always has fast access to her cash. Receivables Financing is to supercharge savings to earn 13% interest.
Why Rashmi joined Cube Wealth
“It was a meeting for PR with the founder Satyen that made I realise that indeed – Managing Money shouldn’t be so hard! And hey – Let’s make your money work for you. Finally! Having met the team and seen the app, I decided I must give this a shot.
The thought, however, was created into reality by my amazing Cube RM (Relationship Manager), Gaurav Shetty, who was not just polite and professional but also available and patient. Virtues when dealing with someone like me who does not understand the financial world that well and isn’t a digital native either.
Today it’s comforting. I can check my money on a real-time basis and if I need help Gaurav, he is just a call away. As I continue to work hard, my money too works and that feels reassuring. My future does look brighter!
My key pain points with my previous advisors were their inability to understand my requirements and not think through how investments should be done for maximum benefit for me. At the end of the year as you look for all tax saving investments you realise you don’t have any eligible tax saving investments made in your name! So you can’t minimise your taxable income as per your entitlements and that’s exasperating. We all expect people to do what their core competency is and if that is not delivered it’s upsetting. With Cube Wealth, all of this is covered and I can access my investments or get support from my RM at any time.”
1. If you haven’t considered maximising your short term savings, you are losing money to the rate of inflation. We can help you stop losing money very simply.
2. If you aren’t happy with your current advisors performance or service – don’t ignore your gut or continue to suffer. You do have much better options available with Cube Wealth.
We’re not experts in tax at Cube Wealth but we do have tax reduction investments available. They don’t have complicated fee structures and they have great returns. You can discuss these options with your CA to ensure you leverage all of your entitlements under section 80C.