Before you start investing check your risk profile

Before you start investing, the key is to understand your risk profile. Prima facie, you do have a risk capacity but what you need to check is your risk appetite. Risk appetite is more about understanding your actions in times of adverse situation, i.e., how will you react if your investments meant for six years starts showing negative returns after only three months of investing?

So, you are eager, about embarking on an investment strategy. You have decided that you will save money henceforth and invest it smartly to make it grow. You have consulted with your friends and family, have a fair idea on what all options that you plan to take.

Do you know what your risk profile is? Do you know that you cannot blindly invest without knowing how much risk you can take? 

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Before investing be clear of your investment objective.

Investment objectives can be broadly classified into:

1.Generating an additional source of income

2. Financing future needs

a. Buying a home

b. Building a retirement corpus

c. Child's education and marriage

d. Legacy Planning

3. Increasing savings/ Inducing savings

4. Reducing tax liability

5. Protecting your savings from inflation

Factors that determined Risk appetite 

Loans and Liabilities: 

The first and foremost facet to be considered before you embark on investing is to take stock of your loans and liabilities. Loans are simple. You have a track of them, even if you do not realise it! Generally, the EMI payment is deducted from your bank account. Just make a note of them.

Age: 

Obviously, the younger you are, the higher risk you can take (it includes those who are young at heart as well!). By age, what we are trying to say is, that when the age is lower, the investments have a longer time to reap rewards.

Income: 

Your income and its steadiness is another major factor which contributes to your risk profile. Are you in a good job which pays you enough to cover all your essential needs with ease? In case a couple of investments take a longer time to reap returns, will your day-today living take a hit?

Current Scenario : 

Your age, financial dependents, assets and liabilities, sources of income, level of engagement (active or passive investor) and investible capital

Past Experience: 

Knowledge about investment products, inclination to learn, nature and composition of the last held portfolio and its performance

Future Outlook : Time horizon available to fulfill the investment objectives, liquidity requirements in the near future, importance of tax savings vis-a-vis return on investment

Personal Finance Lessons From The Olympics

‘Citius Altius Fortius’ meaning Faster, Higher, Stronger is the motto of Olympics. The ultimate sporting event for athletes to do their best, win medals for their country and gain sporting glory. There is a lot of hard work, tears, sweat and blood behind qualifying for the Olympics & only few like PV Sindhu & Sakshi Malik got a chance to stand on Podium.

We can learn a few lessons from the Olympian athletes to use in personal finance management :

1) Set goals:

The basis for any venture is goal setting. You need to define in concrete terms your goals for different time frames. For example, a sprinter in the 100 m race will set different goals for different time frames. Short-term goals could be related to strength training and endurance. Medium term goals could be setting a personal best and winning medals in national events. Long term goals would be getting selected for the Olympics team or running the 100 m under 9.90 in the next Olympics. Similarly, you should set short term goals, medium term goals and long term goals that can be measured. Short term goals can be related to budgeting. Medium Term goals can be related to building a home and long term goals could be comfortable retirement, children’s education etc.

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2) The earlier you start the better it is:

To compete in a sporting event on an international level requires years of practice and training.

For example the legendary swimmer Michael Phelps took to swimming at the age of 8 and held a world record in swimming at the age of 15 years and 9 months. Usain Bolt was already winning all the races in his school by the time he was 12. The earlier you start, the more practice you have and the more time you have to rectify mistakes. You have time to experience more and compete more. This is applicable in every sense to personal finance.


3) Understand & Work around Circumstances:

While playing a sport, it is not enough to just do your best. You need to understand changes in rules, opponents, new training strategies, playing conditions etc. Similarly, you need to understand that Financial Life is dynamic so Financial Plan can’t be static. So what you have planned today may help you to take next step but if required you may have to change path later.

4) Get professional help

Athletes have different people around them to manage their sport. They get professional help from their coach. They take help from sports doctors and therapists to keep their physical & mental condition at the peak. They take help from nutritionists and diet experts to ensure they get the required nutrients from their diet. If personal finance overwhelms you, you can take the help of professional advice. Professional advisors will be able to give you expert, relevant and unemotional financial advise.

5) It is not over till it is over:

You will face hardships, downturns in personal finance. But you cannot lose heart. You have to rise above the struggles and try till you succeed. Sprinter Gail Devers suffered from a disease called Graves disease that threatened to end her career. She fought back, recovered and won gold medals in the 1992 and 1996 Olympics. Justin Gatlin (age 34) who came second in 100 mt race – has similar story of ups & downs. Many people feel it is the end of the world when they face financial crises. You should remember that financial hardships may not be as bad as life threatening circumstances and work towards reaching your goals.

Do your family know about your finances?

Did you know that nearly 43% of women in India have no idea about their husband's financial, insurance, and personal details?

You should make sure that your family - definitely all adults but also older children - are on the same page when it comes to the family’s finances. This could come in handy if you fall ill or suffer an accident. Your family especially your children and wife should have knowledge of money, If they dnt have knowledge they are likely to live a hand-to-mouth existence or rely on other parties for financial help.

So, ensure your family does not fall into the same trap.

Here are the things your family should know about your finances.

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Bank account: Ideally should keep all the track records of your bank account and maintain one bank account for per family Member.

Investment accounts: Make a list of all your investment accounts.

Financial Physical Assets: Details of home ownership, bank lockers, large refundable deposits with institutions other than banks, as well as your provident funds' details.

Loans: If you have loans, the details of loans (car/home, etc.), such as EMI amount to be paid, time remaining to repay the loan, etc. should be informed to your family member.

Credit cards and debit cards: A list of all credit and debit cards, with their respective numbers (on the card), contact details of the card company. If in case a fraudulent event is reported, your family members can block the cards immediately.

Health Insurance Policy: Make a list of your health insurance policies – personal as well as provided by your employer and any top ups. List of network hospitals, co-pay amount, the process of informing the insurance company etc.

Life Insurance Policy: Make a list of your life insurance policies, amount, type of policy, beneficiary, nominee, riders, date of premium payment, date of maturity.

Will: keep your will in a safe place and let your family know where it is.

Know your financial moves for your 50's

Your 50’s can be a time of transition – your kids may be starting university or moving out, your earning power has increased, your mortgage may be paid off and you are beginning to think about retirement more than ever.

Carefully planning the financial aspects of your retirement can increase the chances that you will have the resources to sustain yourself during your retirement years. Any good financial plan should take into account both your anticipated income and your expected expenses.

Assess your goals for your retirement pursuits. Seek the assistance of counselors if you need help clarifying your values and interests. Depending on how you plan to spend your retirement years, the cost of these activities can raise the amount of money you need to have saved for retirement significantly.

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It is also essential when you think about retiring that you have interests and hobbies you’d like to pursue. When you stop working, you obtain significant amounts of time back. For example, a friend who is a successful business owner with many employees looks forward to his retirement when he will have more time to bake bread, practice photography, read, watch silly YouTube videos and target shoot.

Track your current living expenses. Get a realistic picture of what you'll need in retirement by monitoring what you spend today. Factor in any decreases in expenses you will experience such as the costs of commuting, your work wardrobe, and any other job-related expenses.

At the same time, don’t become cost foolish. You will want to plan for additional expenses for travel, eating out, hobbies, athletic activities and other retirement interests and pursuits as well as any healthcare coverage.

Go for tax efficiency. Try to maximize your registered retirement savings plan, tax-free savings account and (if available) voluntary contributions to a workplace pension plan. Also remember that earning dividends and capital gains in non-registered plans will keep more money in your pocket than interest income.

Adjust your portfolio. As you near retirement, consider allocating more of your assets towards investments that provide safety and capital preservation, while maintaining some growth-oriented investments to help meet your long-term #financial goals. Your advisor will help you find the right mix for you.

Assess your insurance needs. From disability and critical insurance to business and life insurance, think about protecting what’s valuable to you and your family. What coverage do you need? How much? Also start thinking about future long-term care and how you’ll fund it.

Do you want learn Investing like captain cool?

Ms Dhoni who have captained Indian Team for nine years Mahendra Singh Dhoni, who captained India in limited overs cricket for nine long years, has stepped down. "Captain Cool" as he was popularly known gives way to a new generation of players to be led by a brash, young Virat Kohli, who's waited in the wings for a while.

He has the most wins by an Indian captain in both tests and one day internationals. Among other laurels, he led India to victory in the 2007 ICC World Twenty20, the 2011 ICC Cricket World Cup and the 2013 ICC Champions Trophy. In 2009 the Indian team rose to be number one in tests for the first time.

Dhoni’s journey to greatness requires the usual facets we associate with greatness: having belief in one’s ideas and control over one’s mind, having discipline, being able to work astronomically hard, and above all, having the stamina and patience to overcome challenges and go the distance.

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We can learn from MS Dhoni to be Cool –

Dhoni is famously known as captain cool. A calm temperament is a great asset in the field of investment as well. When the markets tank, most investors lose sleep as they see the value of their portfolios shrink. Warren Buffett has said that you should be greedy when others are fearful and fearful when others are greedy. In a bear market, investors should be able to coolly evaluate which high-quality stocks have become available at a bargain and snap them up. Instead, most of them are either unable to invest more in equities, or worse still, sell their equity holdings altogether.

He is the coach and the advisor to the youngster –

There are many people in our life who have help us to walk and cross all the hurdles in our life. We always remember them in our life and cherish those lovely memories.

In Dhoni’s Life His family, Friends especially his father supported him to shape his career as a cricketer. 

How can one forget his coach who passionately trained him and whose joy knew no bounds when he left his wife standing in the middle of the bazaar to convey the news of selection to M S Dhoni.

In personal finance too, your financial adviser acts in a fiduciary manner to make sure you are on track to reach your financial goals. Financial adviser acts independently without any bias to make sure the client’s best are interests are served always. Independently without any bias to make sure the client’s best are interests are served always.

Calculated bets

Dhoni does take risks but they are well-calculated ones. He does not have a reckless, all-or-nothing approach. This is reflected in the composition of the teams that he fields. Depending on the sort of pitch that the team will play on, he may take an extra spinner or an extra pace bowler. But he rarely goes with an all-pace or all-spin attack.

An investor too should make calculated bets. Warren Buffett and his partner Charlie Munger often give the analogy that they have mastered the art of vaulting over small obstacles rather than very high ones.

For instance, a typical investor may have an 8 – 12 per cent or 5 – 10 per cent strategic allocation to gold in a long-term portfolio. He may tactically shift his weightage depending on the performance of the asset class, moving to the upper end of that range when the asset class is performing badly [buy low] and to the lower end when it is performing well.

The Finisher 

More specifically, his skills as a finisher. In his heyday, Dhoni was one of the best finishers in the limited-overs game, even sending yorker-length deliveries for six with his signature ‘helicopter shot’. But even Dhoni’s tried and tested ‘safety first and attack later’ approach was getting outdated, given how the limited-overs game has evolved in such a short time. Batsmen nowadays are not always allowed the luxury of consuming too many deliveries to get set, before attacking.

In recent instance MS Dhoni, the finisher with a Midas touch, was back in his elements for Rising Pune Supergiant (RPS) against Sunrisers Hyderabad (SRH) in an Indian Premier League (IPL) 2017 match.

MS Dhoni hit a 34-ball 61 not out to help his team cross the finish line in the last over. Chasing 177 to win, RPS lost a couple of quick wickets to get reduced to 98 for three. But Dhoni ensured that his team finish with a win, despite needing 47 off the last three overs.

MS Dhoni clinched the last-ball thriller with an imperious cover drive and the entire Pune dug-out, including skipper Steve Smith, gave him a standing ovation.

As you get closer to your goal—say when you are five years away from retirement—you need to reduce the risk in your investment and move a larger portion to fixed-income assets, so that a downturn in the equity market does not affect your retirement plans.

Tops things to consider before availing personal Loan

A personal loan is an unsecured loan which can come in very handy during the times of need. It has the potential to rescue you out of an immediate financial requirements. This is because it gets processed quickly and the amount is transferred into your bank account, thus enabling you to meet your financial requirements.

Right Time and Right Reason

The first thing to do is to analyze your current and future financial status. Analyze the reason for availing the loan. If it is not for an immediate need, just postpone. If the reason is valid and needed, check for the right time to avail it. Monthly EMIs should neither become a burden nor disturb your regular commitments. In short, a personal loan has to be availed only for a valid reason and at the right time to avoid unnecessary financial stress. After all, a loan should be a tool to solve your financial issue, not create one!

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Interest Rates: 

As personal loans are unsecured, they attract a very high interest rate. This is because you need not keep any asset as collateral. This also does not give the lender any guarantee of receiving the amount back. Hence, the nature of this loan also makes it that much more difficult to obtain as compared to getting a secured loan disbursed into your account. You may either apply for a fixed rate or a variable rate when it comes to choosing the type of loan.

Read loan agreement details carefully: You should always read the loan document in its entirety, including the fine print to know all the charges, fees and penalties for non repayment. This will help you not to be caught off-guard later. Do not rely blindly on the bank relationship manager who might not make you aware of some important details.

Penalty Charges: 

In case you are not able to pay your dues on time, there is generally a very heavy penalty that is charged on your loan account. You should find out about the exact details regarding the penalty that may get levied in case of any such circumstance arising in the future. You want to ensure the affordability factor of the loan right from the beginning.

Credit History: 

Before applying for the loan, you should check your credit score in order to know the likely prospects of getting the loan sanctioned. Most importantly, if there are any pending credit card dues, then you should immediately pay them off as this will reflect in your credit history while your application is getting processed.

Know the process of deferment:

This would come handy in case you have a temporary cash crunch leading to inability in meeting repayment obligations. While the going may be good when you decided to access the loan, there is always the possibility of things going wrong in future. A loss of job or another emergency can create short-term cash crunch and inability to meet payment obligations. You should be aware of how to handle such a situation at the time of accessing the loan.

Think of the consequences of not being able to repay loan in time:

Loan default can have serious consequence. Being aware of the consequences can itself make you a disciplined borrower and help you work within your means.

Remember defaults can mess up your long-term credit score too: 

Besides brush with the authorities and courts, defaults will also have a negative impact on your credit score. Even if you are later able to service the present loan successfully, your ability to access loans at a future date may be severely curtailed as your credit history would reflect the previous defaults. A clean credit history can also help in negotiating cheaper interest rates later.

Why proper financial planning is required?

The first thing we have to keep in mind that “We should be True To our self And Keep a Simple.”

Even though death and taxes are the only guarantees in life, a proper investment plan should drastically improve your odds of long-term success. However, it is unlikely that you will stick to your plan unless it fits your personality and you truly believe in it. Some investors consider the term “trader” a four-letter word. It’s just not in their DNA to actively trade their investment capital. On the other hand, some investors classify a position that they hold overnight as “long-term.” There are no right or wrong answers when it comes to one’s investment beliefs and investment plans will be as unique as the investors themselves. That said, your plan should only include strategies and time frames that you are comfortable executing. Be honest with yourself!

Financial planning helps you determine your short and long-term financial goals and create a balanced plan to meet those goals.

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The right investment should satisfy the following basic principles of investments: 

1. Safety 

2. Liquidity

 3. Risk level 

4. Transparency 

5. Return on investment

 

6. Exit route

Investment Planning also helps you to decide upon the right investment strategy. Besides your individual requirement, your investment strategy would also depend upon your age, personal circumstances and your risk appetite. These aspects are typically taken care of during investment planning. Investment Planning further helps you to strike a balance between risk and returns. By prudent planning, it is possible to arrive at an optimal mix of risk and returns, which suits your particular needs and requirements.

Apart from financial goals, the most important thing in financial-planning is investment plan. An investment plan is important because it creates a framework for every investment activity in which you will participate. It states what you will invest in, how you will invest, why you will invest, what percentage of your money you will invest, and so on. In short, your investment plan significantly affects your investment returns. Frame a investment plan well and then follow it carefully. Your investment plan is a detailed description of all the major components of your investment strategy. It will help you to do the following:Represent yourself. It explains your personal investment characteristics, such as your risk tolerance and your personal constraints, and how those relate to your asset allocation and targets.

Articulate what you will and will not do. This plan clearly states what you will and will not invest in and how you will invest, and also includes investment guidelines that will help you invest your money wisely and achieve your goals.

Provide an investment framework and guidelines for making wise investment choices. If you clearly think through and plan how you will invest now that you have few assets (and are not influenced by "fear and greed"), it will give you an investment framework and guidelines to help you reason through decisions which could have a major impact on future financial goals and retirement. If followed carefully, it will help you avoid poor investment decisions that could have major repercussions for your financial life, but only if you follow the plan.

You can place yourself in a great position, if you frame a good financial plan. It is normal and human to become isolated and depressed when we see our investments going down and there seems to be no answer. No matter, with all that is going on with the economy, there is always opportunity's in the #investment world. Even if the market is going up, down, or sideways, there is always money to be made.

What are the best options to invest money?

Whether you have just come into a large lump sum of money or have some money set aside to begin investing, there are a variety of ways to go about investing your money. It is important to do your research prior to investing. There are some mainstream ways to invest that can work for even a novice, but you should always weigh the risks with the probable gains.

As a new graduate, the first thing you should do is to lock down as much money as possible in savings. 

What you should instead do, live like a student a little longer. The first 2 years after graduation is when you should try to secure your financial future. Unless you manage your savings, it is hard to manage your investments.

If you are a single person just out of graduation, your goal should be to save half of your 12 lakhs in the bank. You should have enough bank savings to last 6 months of your monthly expenditure. Keep this in a fixed deposit. Once you are tight enough to manage this, proceed to the next step. ‘

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Start with balanced mutual funds that are fairly less risky. Get your toes in the water through these

Life insurance 

When an investor pays a life insurance company to payback money to them over a period of time in small increments, this is called an annuity. Depending on the specific company, the investor can choose to receive payments until he is deceased or can set up a stop date. Since the insurance company may go bankrupt, there is moderate risk involved, although many states cover up to $100,000 in the event of a company defaulting.

Banking

Bank accounts offer extremely low returns and are better used as a form of storing cash. Some of the types of accounts at banks include personal savings accounts, business savings accounts, personal checking accounts, business checking accounts and Certificates of Deposits (CDs).

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Business

Building your own business is an extremely risky investment. Although you could become financially free and your own boss, there is the huge risk of losing everything. When starting your own business, do your research, put together a business plan and seek advice from others with experience.'

Properties

Investing in real estate is another popular type of investment. Depending on your method of investing, real estate investing can become extremely lucrative if done in the proper locations and the correct way. You can purchase homes to fix them up and sell them for a higher price, or you can purchase homes to turn around and rent them to tenants for a slightly higher cost

In summary, the first rule of investing is to save. Unless you have sizable money to invest, your above-market returns would not matter. Once you have built your safety net, go after mutual funds and then to equity funds/stocks.

Know the Tips of Investing in Child Insurance Plans.

The rising cost of education is troubling Indian parents. More than 60% of the respondents in an online survey this as their biggest worry. This was followed by lack of knowledge, not saving enough and starting too late.

We hadn't included the biggest worry-the risk of their own untimely death-as a choice. We should have. According to the National Crime Records Bureau statistics, an Indian dies in an accident every 90 seconds.

It's a terrifying thought for a .. 

Child Insurance Solutions are insurance plans that take care of your Protection and Savings needs for securing the future of your children. As a parent, one of your most important goals would be to make sure that your children have a bright future and lead their lives comfortably. These solutions can help you achieve that by saving for your children’s higher education at a prestigious university.

Why Child Insurance is important?

1: The time and resources to grieve.

There is likely nothing more devastating than the loss of a child. In such an unfortunate and untimely event, day-to-day responsibilities might be overwhelming - the demands of your job, paying the bills, and having to care for other children in the household. The reality is you might not have enough paid sick or vacation time from work to take care of yourself, your spouse or your other children during this difficult time. If the unthinkable were to happen, would you have done enough financial planning to have the resources to go back to work on your terms?

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2: Cash Value and living benefits.

The cash value earned from a permanent* life policy (such as whole life, universal and variable life) can be withdrawn or borrowed against, providing living benefits that can used by your child as he or she gets older for many things such as:

• College tuition and expenses

• Financing a vehicle

• Paying for a wedding

• Collateral for loans

3: They'll always be insured.

There are a number of factors that can affect your child's future insurability. High blood pressure, diabetes, obesity and cancer are just a few of the many health complications that might prevent your child from being insured down the road. One of the primary benefits of purchasing a life insurance policy when they are young is that they will always be covered regardless of their future health as long as premiums are being paid.

4: Guaranteed insurability:

Some life insurance policies for children come with an optional guaranteed insurability rider/endorsement that may available for a nominal cost. As your child grows into an adult, this rider allows you to buy additional life insurance above the face value of the current policy (on specific dates and in certain increments) regardless of his/her health status at the time. Usually, the older the child gets, the fewer dates the policy owner has to purchase more life insurance and in some instances, after a certain age, the rider may not be exercised.

5: A locked-in rate.

Life insurance premiums for minors can be very affordable. Buying life insurance for your child now could give you an opportunity to lock in that rate for the life of the policy. As long as the required premium is paid, the policy will stay in force.

Policies vary greatly from company to company. A life insurance professional can help you select the right policy type and optional policy riders so your child will get the most out of their policy - even when he or she is grown with a family of their own.

"A dream that never comes true" – Retirement vision.

Early retirement planning is identical to conventional retirement planning with one big exception – time

Wish you could retire right now?

Give up the rat race, embrace a life of independence, reduce your stress, and have more time for what you value most — your family, Education, travel? That might seem like a fantasy but early retirement is within reach of most western people, if they would only take the steps to make it happen

Indians have a different mindset from the which is completely different from people in the Western countries 

In India, we generally start off earning pretty late, especially the salaried class. Due to huge unemployment,

We need to go on raising the eligibility bar and today a post graduate degree has become bare minimum for good jobs. When we start late, we necessarily reach our goals late. 

There are some other socio economic reasons. First, since we do not have Social security cover of any sort, we have to make sure that we save enough for our old age. Normally your Provident fund etc. grows with your number of years in service and terminal benefits are also maximum if you serve a full term. So everyone wants to work till superannuation. This is an economic reason. The socio factor is, by tradition our family bondages are thicker than those in West. Hence we not only wish to save for ourselves but also want to leave a good slice for our children, which is not very heard of in the West. All these accumulations need time and hence early retirement is ruled out.

Early retirement planning is identical to conventional retirement planning with one big exception – time. You have less time to achieve your financial goals, and more time that your money must last after retiring.

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How to make oneself financially secure at retirement?

Early Retirement Tip 1: Have a Plan :

The first mistake most people make is they lack a written plan to build financial security.

You can’t put the formula for financial success to work for you without a plan to accomplish it.

It may be a simple process, but it won’t happen randomly. You make it happen by taking action. A written plan with goals provides the road map and is a necessary first step.

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Early Retirement Tips 2 : Saving For Future 

The first step to financial independence is figuring out where your money is going now. Monitoring and, if possible, reducing, your current spending has two important benefits: it frees up more money to be put aside in savings, and it reduces the amount you need each year to live on, thus lowering the total amount you need to save.

Rule of thumb is that, before you retire, you should save 25 to 30 times’ your annual spending.

While the 4% rule has come under attack in recent years — many financial experts argue that it’s too optimistic a number given the outlook for lower financial-market returns in the future — early retirees say it worked for them even in years when the markets performed poorly, such as the market downturn in 2009. The key is flexibility; that is, being able to trim costs so that you can withdraw less in years when the market is down.

Early Retirement Tips 3: How to Invest?

The most important aspect of investments is “Financial discipline” as most often than not, we may falter and do not adhere to the objective of investment in the long run, it is easier said than done, as many a time we may discontinue, withdraw or utilize the funds earmarked for a specific goal (retirement) for other reasons due to many reasons be it medical emergencies, or changing aspirations or opportunistic investments etc.

There are numerous investment vehicles but to choose the one best suited and customized is once again a difficult task. When you do this, you have to determine the inflation adjusted corpus required at vesting age and the monthly amount of Investment needed to achieve the same.

Early Retirement Tips 4 : manage your taxes

Just as when we’re working, taxes are a consideration in retirement, whether you retire early or not. It’s crucial to include an estimate of your annual tax bill in your “total savings needed” amount.

Your tax bill may come in a variety of flavors. If you’re pulling your income out of a taxable brokerage account, you’ll most likely owe capital gains on those distributions.

Cinderella beautiful Girl - If the Shoe Fits

Are you facing challenges in investment ? Is investment important in financial journey.. ?

During our childhood, we learned a story about Cinderella and her adventures. Just have a small recap of the story Once upon a time, there was a beautiful girl named Cinderella. She lived with her wicked stepmother and two stepsisters. They treated Cinderella very badly. One day, they were invited for a grand ball in the king’s palace. But Cinderella’s stepmother would not let her go. Cinderella was made to sew new party gowns for her stepmother and stepsisters, and curl their hair. They then went to the ball, leaving Cinderella alone at home.

Cinderella felt very sad and began to cry. Suddenly, a fairy godmother appeared and said, “Don’t cry, Cinderella! I will send you to the ball!” But Cinderella was sad. She said, “I don’t have a gown to wear for the ball!” The fairy godmother waved her magic wand and changed Cinderella’s old clothes into a beautiful new gown and send her to the palace.

When she entered the palace The prince had fallen in love with Cinderella and wanted to find out who the beautiful girl was, but he did not even know her name. He found the glass slipper that had come off Cinderella’s foot as she ran home. The prince said, “I will find her. The lady whose foot fits this slipper will be the one I marry!” The next day, the prince and his servants took the glass slipper and went to all the houses in the kingdom. 

They wanted to find the lady whose feet would fit in the slipper. All the women in the kingdom tried the slipper but it would not fit any of them. Cinderella’s stepsisters also tried on the little glass slipper. They tried to squeeze their feet and push hard into the slipper, but the servant was afraid the slipper would break. Cinderella’s stepmother would not let her try the slipper on, but the prince saw her and said, “Let her also try on the slipper!” The slipper fit her perfectly. The prince recognized her from the ball. He married Cinderella and together they lived happily ever after.

Lets translate this story into our personal Financial journey. Like thee prince we have to set a specific goal which we need to achieve, the shoe is the avenue we choose to invest and all those women who tried to fit the shoe are the wrong investments. Bad investments can be an enemy to your cash flows if not discarded and replaced with a more effective, growth oriented and appropriate investment option.

Are you facing challenges in investment ? Is investment important in financial journey.. ?

Yes Seek advice of a financial planner who will make ease for you.Just leave a missed call @022 62116588 and have a personalised financial planner for FREE. MoneyMindz provides Free Financial Advisory, Financial Investment Services, Financial Planning, Certified Financial Planner Assistance,Retirement Planning Advisory, Free Financial Advisory, Online Personal Finance, On-call Investment Management, Best Financial Planner, CFP India, Personal Financial Planning,

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Our investments have always been hampered with over cautiousness, fear of volatility and resistance to accept a change in the investment ideology. This is largely due to lack of awareness of the various options available for investing. We still end up doing traditional, non productive and obsolete investments which sometimes don’t even beat inflation effectively. So let’s find out what does an appropriate investment tool means and how it can help an investor in achieving the goals effectively.

Use these tips and key steps to help find an investment that’s right for you.

1. Review your needs and goals.

2. Consider how long you can invest.

3. Make an investment plan.

4. Diversify!

5. Decide how hands-on to be.

6. Check the charges.

7. Investments to avoid.

8. Review periodically – but don’t ‘stock-watch.

Lessons of Financial Planning - In Ipl way

          You always need to be equally prepared for the pleasant surprises and the bad shocks as well

              

Cricket in India is the most popular and most watched sport as compared to all other sports in India. The passion, the craze, the thrill and the excitement that the spectators experience is in matchable to that of any other sport. Cricket in India is like Football in Brazil or Spain. The enthusiasm and the excitement is above all other things. Cricket in India is everyone’s favorite (still there are few who doesn’t like the hype of the game) and is played by most people. 

People here in India can talk cricket all the time. Cricket flows in their blood and probably that’s the reason for “We Bleed Blue” slogan we saw on t-shirts during ICC Cricket World Cup 2011.

It’s back! The fun, the action, the madness and the crazy atmosphere that engulfs each and every part of the country. It’s the game that is a sport second and a religion first. The game that makes millions of hearts skip a beat as the ball is hit high up in the air. Will it be caught? Or has it been hit hard enough to cross the boundary line? Yes, it’s cricket. As the Indian Premier League (IPL) is back with a smashing tenth season, there’s a lot of excitement in the air.

If you cannot fathom how cricket is related to making money apart from the fact that cricket stars make tons of it, let us help you out in deciphering what you can learn about financial planning from the IPL format.

Start early

T20 does not reward late starters—teams need to start scoring early in the innings. If you don’t have enough runs on the board, your batsmen will always be playing catch-up

Similarly, you need to start investing and saving early. The sooner you begin, the more time you get to compound your capital. Also, all batting sides take advantage of the fielding restrictions early in the innings. In the same way, when you are young, there are many things you can afford to do as compared to when you grow older. One of these could be to start building your financial resources when you have few other financial obligations.

Surprise, Surprise!

People say cricket is a game of uncertainties and it’s absolutely right. No matter how many pitch reports and game predictions you make (depending on the latest form of players from both teams), you can never really predict the outcome. A batsman who has been consistently failing in the previous matches might suddenly surprise you with a century. Or a bowler, who had a five-wicket haul in the previous match, might just get banged with fours and sixes. Basically, it’s all about surprises.

Investments are exactly the same. You always need to be equally prepared for the pleasant surprises and the bad shocks as well. Since it involves a fair bit of risk, there’s always some room for surprises creeping in.

Strategic break

Teams take a strategic break to review their progress after 10 overs and chalk out a strategy for the rest of the innings. Such strategy breaks are important for your financial road map as well. If you don’t regularly review progress and look at ways to address the problems and challenges, you may end up falling short of your financial targets.

Seek advice of a coach: 

On an IPL team, there is a whole host of inexperienced actors who may be good but are not familiar with what needs to be managed to accomplish success on the field while facing players of professional gauge.This is true of life as well as finances. You may an innate sense of investing, but may not have adequate knowledge of all investment avenues. It is therefore best to seek advice of a financial planner who will make your money work for you.

Just leave a missed call @022 62116588 and have a personalised financial plannner for FREE. MoneyMindz provides Free Financial Advisory, Financial Investment Services, Financial Planning, Certified Financial Planner Assistance, Retirement Planning Advisory, Free_Financial_Advisors, Online Personal Finance, On-call Investment Management, Best Financial Planner, CFP India, Personal Financial Planning

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Balance

Just like a team needs the right balance of big hitters, anchors and effective bowlers, your investment portfolio, too, needs the right balance of investments. Too much of growth or aggressive funds, without adequate support or backup, might make your portfolio shaky. You must recognize that your investments should be diversified across sectors and different assets, and not be concentrated in any one area.

Cultivate and maintain a winning attitude:  

For any player who is a part of IPL a winning attitude is a must. Only when each player of the team believes that he will do his best will the team win the match. This is true of your financial goals too. You must have the confidence to invest in a regular and discerning manner and believe that your investments will accumulate wealth for you.

Distractions can be entertaining, but ultimately the score matters

T20 is highly entertaining not only on the pitch, but also because of all the music and dancing. But ultimately, a team wins or loses on the back of its performance. Similarly, while you are securing your finances, distractions such as the hottest investments or the flavours of the month will come and go, but what matters most is that your “investment scorecard” should show a healthy average. You must focus on what matters and ignore the distractions.

So,you can see even a game of cricket in an entertaining format can teach you a thing or two about better money management. As you enjoy the ongoing season of the IPL, make certain you keep these simple lessons in mind as well!