Key Takeaways Retirement planning is the freedom to do what you please, be it not working, travelling the world, starting a business or anything else you dream of, without having to worry about your day to day sustenance. The steps to retirement planning involve setting a target age, estimating income needed, calculating the size of …
Key Takeaways Invest in properties that provide rental yield, hence an income for life with only some effort in management. You can start annuities by putting an upfront investment to avail a fixed amount of income for a period of time. If one has excess cash, one can utilize P2P lending platforms to lend to …
5 Passive Income ideas to achieve Financial Independence Read More »
Key Takeaways For the same amount of gains and losses, we associate a much larger reduction in value for the loss as compared to the increase in value from an equal amount of gain. As a result of this skewed perception of losses as being extremely negative, we end up choosing safer investment options with …
The Psychological Reason Preventing You from Getting Rich Read More »
Key Takeaways Growth investors look for those stocks or mutual funds that have a very high growth potential in the future in terms of revenue, profit or some other metric. They are not bothered with splitting hairs on high current valuations or price-to-earnings ratios. Value investors look for those stocks or mutual funds that are …
Growth vs Value Investing: Where should you be putting your money? Read More »
Key Takeaways You have a choice between low cost (direct mutual funds & ETFs), mid cost (traditional mutual funds) and high cost (insurance or endowment products) investments to get access to managed solutions. Based on the numbers, you would be significantly better off choosing the low cost options. You pay high commissions for traditional mutual …
How do hidden fees and charges affect your returns Read More »
Key Takeaways Investment planning is a small subset of comprehensive financial planning. The components of financial planning can be divided into three key pillars: savings & investments, financial risk management and managing loans & leverage. People often confuse financial planning with investment planning. In fact, they assume that saving and investing is all you need …
Difference between financial planning and investment planning Read More »
Key Takeaways Automated passive investment management strategies such as dollar cost averaging, periodic rebalancing and glide path can go a long way in mitigating the impact of market volatility on your portfolio. Glide path helps reduce volatility of your exit by reducing the exposure to higher risk assets such as stocks over time and increasing …
Key Takeaways To get back on track to achieve your goals, you need to look at the urgency of the goal, flexibility of your budget, prioritisation amongst the various goals and your ability to align your financial plans to realise them. See if you can reduce the goal amount or postpone the goal for a …
5 ways to get back on track for your financial goals Read More »
Key Takeaways Mutual funds and ETFs are both collections of a basket of underlying assets (usually stocks and bonds) which enables multiple investors to pool their funds and invest in the underlying assets. Mutual funds are actively managed and as a result have higher expense ratios. ETFs are passively managed and end up being cheaper. …
There is a popular saying in finance: There are only two types of people in this world. Those that earn interest and those that pay interest. Which category do you fall under? Depending on which side of the coin you are on, compound interest can either elevate your life and goals to the next level …
Compound interest: Make this powerful force your friend Read More »