Many of us dislike annuity plans. The rates are low and the income is taxable. You lose flexibility with the money. The income is not inflation-adjusted. So many problems. Still, annuities can add a lot of value of retirement portfolio if purchased at the right age. In this post, let’s try to understand this with the help of examples. We will start with a brief introduction … [Read more...] about Retirement Planning: Staggering Annuity Purchases can Increase Income and Reduce Risk
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Avoiding bad financial decisions is as important as making good ones, but what influences you to make such good or bad financial decisions? Your decisions are a reflection of your financial habits i.e. a reflection of who you are as an investor and as a person. In this post, we will look at 5 financial habits that you can affect your financial lives adversely. #1 Think more and … [Read more...] about 5 Financial Habits that can ruin your Financial Life
When we plan for a goal, we assume a rate of return on investments for the goal and plan investments accordingly. Picking up the long-term average return is a rational choice. Long term averages are fine (even though long term averages can also change). However, the sequence of returns matters too. For the same level of long-term return, the actual output can be very … [Read more...] about How the Sequence of returns risk affects your Financial Planning?
You start with a certain asset allocation mix. At regular intervals, you bring your portfolio to original asset allocation mix. Let’s say you have Rs 20 lacs to invest. You have two asset classes Equity and Debt. You invest Rs 10 lacs in Equity and Rs 10 lacs in Debt. Asset allocation of 50:50. During the next 1 year, Equity gives 20% returns while Debt gives 5% … [Read more...] about What is Portfolio Rebalancing? How it helps?
I get many inquiries about financial planning or investment advisory services. During the follow-up discussion, a few prospects go cold once we start talking about the fees. I do not deny affordability can be an issue. A few perhaps feel that the advice (value) is not worth the price. I am quite finicky about who I onboard as a client. A few prospects are lost there too. Fair … [Read more...] about The Cost of a Poor Financial Product is much higher than the cost of Professional Investment Advice