Investors have different levels of risk tolerance. Some don’t bat an eyelid even if their portfolio nosedives by 25-30% while others worry even if their portfolio is down half a percent. The first category of investors are likely experienced investors while the second category have a low level of risk tolerance. How should such investors with low risk appetite or tolerance … [Read more...] about How to invest if you have low risk appetite?
Are you looking for a financial planner or financial adviser? Who would you go to? There is no dearth of choices. Let’s look at some of the common financial advisers/ planners/agents you may encounter: Mutual Funds Distributors (MFDs) or Independent Financial Advisors (IFA) Insurance Agents Bank branches/ relationship managers SEBI Registered Investment … [Read more...] about What is better for you: A Fee-only Financial planner or a Fee-based planner?
One of the few things that I remember from induction training on the first day of my professional career many years back is a quote from a presenter that Expectation reduces Joy. From the perspective of a large software company, it was important to have employees with not too high expectations. However, even as an employee, it made a lot of sense. Your expectations about … [Read more...] about The Problem lies not with the Investment but with Investor Expectations
Avoid 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 … [Read more...] about 5 Financial Habits that can ruin your Financial Life
Every profession requires you to have persuasive skills. You have to persuade your boss to grant you a leave. You have to persuade our team member to agree to your line of thinking. Your boss has to persuade you to work over the weekend. You may say your boss hasn’t really persuaded you to stay work over weekend. But he used his Authority to make you work. You could have … [Read more...] about A Visit to the Park or Snakes & Ladders?
PPF interest rate has been cut from 8% p.a. to 7.9% p.a. for the April-June quarter. This is the first time PPF interest rate has fallen below 8% p.a. By the way, PPF is NOT the only investment product for which the interest rates have been cut. Interest rates for other small savings schemes (Sukanya Samriddhi Scheme and Senior Citizens Savings Scheme) have also been cut by … [Read more...] about PPF rates cut again and the Equity brigade will rejoice
Recently, I watched an advertisement by a leading insurance company where the company offered to provide emotional counseling and financial planning services to the family member in the event of demise of the policy holder. You can watch the ad on Youtube. By the way, contrary to the impression you may get, the services do not come free of cost. Now, the pertinent … [Read more...] about If Insurance Companies were to offer Financial Planning?
Dual Income No Kids (or DINK) families are likely to have higher disposable incomes. Not a bad situation to find yourself in. If yours is also a DINK family, you are likely to be in a comfortable financial position, at least as of now. Does that mean you can afford to go slow on your investments? Does that mean you do not need any kind of financial planning? Financial … [Read more...] about Financial Planning Tips for DINK Families
Being self-employed gives you much flexibility. You can choose to work on what you are passionate about. You don’t have to deal with a difficult boss. In many cases, you can even choose your working hours. Sounds rosy? Well, there are many drawbacks too. There is no salary at the end of the month. The cash flows can be erratic. There is no mandatory EPF deduction. An illness … [Read more...] about Financial Planning Tips for Self-Employed
Do you need a financial planner? In my opinion, not everyone needs financial planner. Only a few do. Basic financial planning is a very simple exercise. It is no rocket science. Financial planning, at least as I understand, can be broken down into a few simple steps. Get your insurance portfolio right. Purchase adequate life, health insurance and accident covers. … [Read more...] about Do you need a Financial Planner?