Last week, we wrote about how most people start their financial journey by thinking about where and how to invest. The right place to start any personal financial journey is not Investing but Protection and by ensuring that existing assets and future incomes are protected against any untoward event.
While the previous article spoke about the importance of Life Insurance and the mistakes that people make while taking it, there is another important aspect of Protection that also needs to be adequately addressed right up front. And that is Health Insurance. Understandably, there are mistakes that people make on this front too, and in this article, we share 7 common ones that can derail your plans.
Most people start their personal financial journey by thinking about where to invest. But at the foundation of a secure financial future lies protection – protecting one’s ability to earn an income in the future. Hence whenever we meet new customers, one of the first things we try to do is understand how well their future incomes and existing wealth is protected.
Insurance of various kinds is the ideal way to take necessary and adequate protection and within that, Life Insurance is one of the most critical, yet underutilized weapons in an investor’s financial armoury. Over the last many years, through our interactions, we have seen many significant mistakes that people end up making in their life insurance decisions. Here we share seven common ones.
We conducted an employee investor awareness program for a corporate recently. It was very well received with attendance much in excess of what was expected.
As part of this program, many of the attendees opted for a one-on-one consult on their personal finances. This exercise made us sit up and take larger notice of something which we have been seeing on and off over the years – the fact that many people make simple yet fundamental mistakes which can seriously hamper their wealth creation journey. We list out five of these mistakes below.
In our journey as financial planners, one of the biggest constants that we see in most customer portfolios is this – they are either already real estate heavy, or customer high-priority goals include buying additional homes – as an investment.
This must come as no surprise, since an overwhelming 84% of all household investment assets in India (RBI Household Finance Committee Report, 2017) are in this favorite asset class – no prizes for guessing – Real Estate.
That being the case, it may be prudent to consider these five investment risks associated with this asset class, since each one of these risks have the potential of causing significant damage to your financial independence journey.
In the last few years, there is an increasing focus on financial independence as a personal financial topic of interest. Financial Independence (or Financial Freedom) is the financial state where one has acquired enough passive income (through investments), thereby not requiring one to have to work to earn one’s living for the remaining lifetime.
World-wide, the concept of FIRE (Financially Independent, Retire Early) has gained a lot of traction, but Financial Independence is a relatively new and less understood concept in India.
The things to do to become financially independent are fairly simple and not rocket science. But many a times, not doing the wrong things is more important, rather than just doing the right things. What I want to share today below are three mistakes that can have serious consequences on one’s quest to achieve financial independence. While they may be repairable, the damage caused to the journey can be severe. Our latest article published on Moneycontrol.
With markets now near all-time highs, one of the jargons that is on top of the pile is “Asset Allocation”. Every newsletter or interview, whether of your fund manager, your broker or your bank refers to this term and advises investors to heed market valuations and “stick to their asset allocation”.
While Asset Allocation is one of the most under-estimated tools for building long-term wealth, the words “asset allocation” themselves are quite a technical term and these words are not necessarily part of an average investor’s lexicon. This implies that many investors may not be aware of what this term means, or even worse, may have a wrong understanding of this term.
That said, Asset Allocation is one of the most under-estimated tools for building long-term wealth, and the below primer explains what Asset Allocation is, why and how you should use it and how you can benefit from it.
For most of us Diwali is that time of the year which spells joy, laughter, togetherness and gratitude. With the festival being just round the corner, last minute preparations must be on at a frenzied pace to ensure that nothing is left to chance and another Diwali goes by joyously, adding to beautiful memories.
Every festival comes with its own set of rituals. We worship goddess Lakshmi during Diwali. Lakshmi is the goddess of wealth and ushers in prosperity and wealth. It is very interesting to see how some of these rituals lend itself to financial well-being and wealth building. So, this Diwali, take a leaf out of your festival routine and spruce up your personal finances!
We are all aware that retirement is inevitable. It is a very important phase of your life which requires careful planning and thought since it is one goal for which you are not going to get a loan. However, one always feels there is plenty of time for retirement and hence planning for it takes a back seat.
Retired life can be a joyful phase in your lives, filled with abundance and time to fulfill some long-suppressed desires, provided you plan much in advance. The list of mistakes one makes when one plans for retirement is quite long, let us look at three of them today.
What type of investor are you and how actually do you manage your personal finances? Am guessing that this is not something that many of us are familiar with or will find easy to answer. Unfortunately, while it should be, personal finance is not as “personal” a topic to most people as personal health is.
Hence over the last many years, while we have seen many customers with regards to how they manage their personal finances, they themselves are not as clear as we can see it, and hence make the wrong decision about what kind of personal financial assistance they need.
That said, it is important to have the right fit between your type and the kind of professional help you take. This article helps you determine what kind of an investor you are and whether the current relationship you have with a financial advisor is of the right fit. Published in Moneycontrol.
All of us love vacations, and the very thought of a vacation is good enough to cheer us up. Why then is it so difficult to enjoy the longest vacation of your life – “Retirement”?
Many of us do wake up to the impending retirement and the financial needs for the same at least a decade before we retire if not earlier. What I am referring to here is therefore not money but the important aspect of how to keep oneself busy and add meaning to retired life.
It is all very well to eat, drink and make merry when you are on a short holiday, but can you think of doing that and nothing else for years? When we look at retirement from this context it is sobering indeed! Imagine, we need to spend one third of our lives in retirement and yet we don’t give it the mind space it deserves.