Quality of rich & happy

Richness and production goes hand in hand . When you produce something ,you fulfil need. When you produce you solve some problem . Then you are paid for the solution . If this continues you continue to generate return

Book profits

Most of the time people make money in one asset class and when the profit is created they again invest the same money in the same asset class. This is one big mistake which most of the people do. The idea of asset allocation and profit booking is that when you earn from one asset class try and invest the same in a different asset class. This means profit booking. If someone is not booking profit when the right time has come the profit will anyway go away. It is very important to book profit. It is said that never marry an equity or one asset class. Keep investing keep doing asset allocation . #yourstruly

Original costs more

When people ask about your service charges, which is usually higher than the normal. It is often assumed that you charge more but the reality is whatever is original, whatever is creative is expensive. When something is a duplicate and not the original one will obviously not make that impact and finally will be sold at a very low value. So my dear friends the messages if people say that you are expensive or your products are expensive, don’t mind if they don’t understand the real value of being original. Original things are not made at random pace . they are not created just every hour. So there is a value when things are created once in a while and it is just created not duplicated , it will have a value. Have patience right time comes and right people will buy it.

Is your retirement kitty enough?

Is Your Retirement Kitty enough?

Today the problem is what ever the earning is it will be less to meet up the expenses. The major reason is Inflation and growing expenses. Other important aspects is growing medical expenses.

Few observation – Only 10% of the retired population is having income from pension or rent. 60% male and 25% of females above 60 are still working . And 60% of the people above 70 yrs of age are dependent ( this is based on source – census India 2011)

The working life is becoming shorter and retired life is increasing. Nuclear Family is growing in trend and has become a reality. Life style inflation is not matching and people have increased the standard of living and expenses. What we need to do is change the outlook towards retirement . Question is  the retirement kitty enough? Look at the image and then think where will the funding come during the retirement age if the person live little long.

Lets take an example of Mr Nishant who have a corpus of Rs 1,00,00,000 now . The expected expenses is Rs 100,000 pm for him and he is expected to live for another 25 yrs. The expenses are expected to grow by 8% pa( assuming) . Expected return on the investment is also expected to be 8% pa( assuming) or this can be less than the inflation . Now the situation is the kitty will get exhausted in 7 yrs which is by 2027. But what will happen for the rest of the 18yrs .

Most of the time we see that the corpus we have created is good enough and will be sufficient for the rest of the life. What we will say is that any amount is less and one has to look at many aspects before planning.

The solution is:

  1. Reduce the expenses as much as possible
  2. Live a healthy life and exersie of atleast 60 mins per day should become a part of life .
  3. Invest in a diverse portfolio
  4. Follow the strategy of Re balancing where you should invest in an asset cass which is cheap and come out of an asset class which is expensive.
  5. Have equity , debt and gold in proper allocation . Asset allocation is the key
  6. Finally have an trusted advisor with you. Paying fee to your advisor is never a bad investment . If your advisor is with you he/ she will ensure best in your and your familys life.