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.
At its simplest, Financial Independence means “having enough money so as to never work again for the rest of your life”. But as you would agree, neither is life simple, nor is it as predictable and straight-forward as one would like it to be. This effectively means that as you go along your life journey, your definition of what Independence means keeps changing as your goal posts keep shifting.
That said, it is not rocket science, and it is something that everyone should aspire towards, not just for the financial security, but for the mental doors that it opens for you when you discover that you are no longer working for the money.
Based on our journey, I share with you below a few simple principles that you can follow to get onto, and stay on this path. But beware, what is simple to understand is rarely easy to do, and requires discipline, patience and the ability to say no to your ego.
In the past weeks, the 32nd Olympics, Tokyo2020, provided the world with sporting excellence and entertainment on display across a range of disciplines. For avid sports fans, these two weeks were exciting days, merrily switching live-streams across events as diverse as hockey, gymnastics, track & field, badminton and golf.
While there were winners, we discovered there were many more heroes, some whose names we heard for the first time, but will remember for long. The Olympics provided some memorable moments but also lots of food for thought. Here are a few observations, particularly pertinent in these raging bull markets.
In the last few years, we have experienced two changes that are here to stay – One, the average investor is getting younger. And two, the investing process has moved to being fully digital.
These two factors, combined with the new-age confidence that today’s younger generation possesses, has led to more and more investors seeking to invest on their own. Or as it is known popularly, DIY (Do-it-yourself).
That said, investing in markets is fraught with risks, and understanding those risks and preparing for them is a critical pre-requisite for both creating and protecting wealth. Hence having a laid-own process with key steps to follow will help DIY investors have a guide-map to reach their objectives as well as guard-rails to ensure that they don’t fall off in the interim.
In the last few weeks, sports fans have been treated to some exciting and memorable sports events – the French Open, the WTC final and now the Euro. These three sports are completely contrasting in the way they are played, in the intensity of the games, the importance of the team vs the individual as well as the interplay between the players and the coach.
Our latest article, published in Moneycontrol talks about what can we learn from these sports specifically on the last point above, that we can apply to how we manage our money.
Dealing with the aftermath of Covid wave 2 has been unsettling and depressing. The family which has lost a loved one suddenly needs to deal with a lot of chaos and confusion, not even allowing them to grieve in peace. This is primarily since in most households, one spouse takes the lead in handling finances and related matters. The other spouse naturally gets complacent that these matters are being taken care of and hence doesn’t even attempt to get a broad picture of the state of assets, liabilities etc.
While this experience has given a lot of action points and mistakes people should avoid, we will concentrate on liability, especially the home loan for the sake of clarity.