Five ESSENTIAL Pillars of Financial Planning

Once said by Warren Buffett,  “People who want returns without risk, often end up taking risk without returns” . Practically or traditionally, risk is measured as the probability of uncertainty of returns in a given time period. However, it actually implies the probability of not being able to attain your investment goals in a given time period. E.g., you invested for 10 years. The probability that you may not be able to achieve your goal 10 years later is the risk associated with your investment. Generally, if your investment experiences ups and downs during these 10 years (of course sometimes it faces downturn also), it’s considered as a risky investment. However, if the end result is up to your expectations, these ups and downs are of no importance. The question is how does this false assumption about risk affect your retirement. Indian investors and financial advisers strongly believe that the savings towards retirement should as far as be possible invested into least r...

We all have dreams, aspirations, and goals that motivate us to work hard and earn money. The money so earned is then invested in various investment tools to earn the best possible returns. People, most often, make haphazard decisions and put their money into various options without even understanding if it really suits them. For example, few people may follow their colleagues or friends, while many others may follow their relatives, neighbors, etc. while making investment decisions. The result is a highly mismanaged portfolio that leads an investor to a confused state of mind. In such a state, the investor is not sure if the portfolio is suitably structured. This blog helps you make a comparison between the track you should have followed and the track you’re actually following thereby helping you find the gap in the implementation of your investment decisions. Think of a number that you consider lucky or important for you. It can be any number starting from 1 to 100 or even mo...