In this episode, Monika discusses the protests by life insurance agents against recent policy changes favoring policyholders. Insurance agents, news reports say, are upset over reduced commissions and clawbacks due to new IRDAI rules that allow investors to keep more money when surrendering policies early. Effective from October 1, 2024, these changes aim to protect policyholders from harsh penalties while addressing mis-selling issues. Monika views these shifts positively for investors and recommends opting for term policies and direct investments over bundled insurance plans.

The episode also addresses the question of whether young people in their 20s and 30s should buy or rent a home. Monika advises that purchasing should only occur if one plans to stay long-term, as real estate is not an ideal investment due to low rental yields and variable appreciation. For those seeking flexibility in their careers, renting is often a smarter choice. She emphasizes the financial trade-offs involved in this decision, noting that buying early may limit career opportunities.

In listener queries, Nripjit Singh Chawla asks if he should redeem his equity mutual fund investments for an index fund. Monika advises against rushing this decision and suggests evaluating the current portfolio first. Dr. Abhinabha Saha, a 26-year-old doctor from Kolkata, wonders whether to take a loan for an MBA or use investments. Monika recommends a mix of both to balance costs. Lastly, Chandan Kundapur from the US seeks advice on generating monthly cash flow from mutual funds. Monika suggests utilizing a Systematic Withdrawal Plan (SWP) and consulting a financial planner for international relocation.

Chapters:

(0:33 - 5:57) Protests by Life Insurance Agents and Policy Changes  

(5:58 - 9:50) The Age-Old Question: Should You Buy or Rent?  

(9:54 - 11:40)  Should I Switch From Equity Mutual Funds to Index Funds?  

(11:41 - 13:15) Financing an MBA with Loans vs. Investments  

(13:17 - 15:07) Generating Monthly Cash Flow from Investments  

https://www.hindustantimes.com/opinion/irdai-signs-off-on-investor-gouging-101711633140902.html

https://www.moneycontrol.com/news/business/personal-finance/lic-agents-associations-up-in-arms-against-lower-commissions-threaten-protests-at-branches-12842876.html

https://www.moneycontrol.com/news/business/personal-finance/economic-survey-calls-out-rampant-mis-selling-in-insurance-banking-urges-action-12774625.html

If you have financial questions that you’d like answers for, please email us at ⁠[email protected]⁠ 

Monika’s book on basic money management

www.monikahalan.com/lets-talk-money-english/⁠

Monika’s book on mutual funds

⁠www.monikahalan.com/lets-talk-mutual-funds/⁠

⁠-funds/⁠

Monika’s workbook on recording your financial life

⁠www.monikahalan.com/lets-talk-legacy/⁠

Calculators

⁠investor.sebi.gov.in/calculators/index.html⁠

You can find Monika on her social media @monikahalan. 

Twitter ⁠⁠⁠⁠@MonikaHalan⁠⁠⁠⁠

Instagram ⁠⁠⁠⁠@MonikaHalan⁠⁠⁠⁠

Facebook ⁠⁠⁠⁠@MonikaHalan⁠⁠⁠⁠

LinkedIn ⁠⁠⁠@MonikaHalan⁠⁠

Production House:⁠⁠ www.inoutcreatives.com⁠⁠