3 things Spiderman can teach you about tax planning
Your friendly neighbourhood Spiderman, is one of the smartest and most popular superheroes of all times.
Although, one of the lesser known facts about Spiderman is his amazing power to inspire fans towards better tax planning.
Now that’s a first for a super hero.
Because let’s face it, while we may want Spider-man’s strength, power, skills and wit. We don’t want his kind of money (mostly because he doesn’t have any).
Spiderman / Peter Parker is a high school kid. He is too young to be a superhero, at his age teenagers are mostly sidekicks to the main superhero. But a deep interest in science saw him transform from a geeky teenager into a world class, crime fighting superhero, all thanks to a radioactive spider!
Spider-man is a focused individual, thanks to his studious nature and superior problem solving abilities.
While Spidey struggles with extreme supervillains, we the fans have villains of our own to beat.
Villians like the menace of Tax Monster.
How do you think Peter Parker, would have dealt with the Tax Monster (if he had a taxable income)?
Here would be Spidey’s three-point plan to save taxes the right way:
- Buying a durable cover
The most important part of being a superhero is the identity, which is where a good costume or cover comes in.
A good costume is not just about attractive colours. It’s an important part of the superhero’s personality.
It’s no surprise then that most superheroes can weave their own costumes. It’s important for anyone to note what protects them and also makes them look good while they’re at it.
It offers him coverage – literally and protects his identity at all times.
An individual also needs a good cover that offers him protection and security in key moments. That’s where a life insurance policy comes in. We recommend term insurance plans, particularly Online Term Plans. With Online Term Plans, individuals can opt for a larger cover at relatively low premiums.
And you collect tax savings in the process under Section 80C, upto a maximum of Rs 1,50,000.
- Grab some power
The web slinger’s real power comes from being able to cling to any situation and fight through it. It allows him to scale great heights and achieve just about anything. While you may argue that his power eventually came through the radioactive spider, it was his commitment to saving people and his knowledge of science, which ultimately helped him achieve comic book immortality.
Individuals can draw a lot of power from their investments, provided they are carefully selected. This is where ULIPs (unit-linked plans) can help you. ULIPs invest premiums in capital markets (debt and equities) which over the long-term can accumulate significant wealth for policyholders. You can plan for children’s education and marriage, retirement, down payment of house with the ULIP monies. Always ensure that your investments keep you ready, for when you reach your “radioactive moment”, you must achieve greatness too.
Again, the good news is you can avail of tax benefits under Section 80C on your ULIP premiums. And also get tax free returns under Section 10(10D)
- Get your own safety net
Everyone needs a safety net and no one knows this better than Spiderman, who is mid-air for a better part of his fight against crime. But fortunately for him, he is good at spinning the web, which is the ideal safety net (pun intended).
You too, need a safety net during critical phases of your life, like post-retirement for instance. It’s a time when you must deal with inflated expenses, higher medical/ healthcare costs and limited income. This is where a good retirement plan can be the perfect safety net for you.
Insurance / retirement plans offer tax benefits under Section 80C, so your money is working overtime.
Spiderman has a lot to offer to the regular individual and we don’t mean just entertainment. His peculiar style of action and superhero antics have provided abiding lessons for the tax-paying investor, looking to lower his tax burden. The best part is that tax saving is just the icing on the cake, you stand to benefit immensely from the products (online term plans, ULIP’s, retirement plans) by way of a more secured lifestyle.