Wednesday, March 30, 2022

How policy holders and investors are fooled in the name of 'guaranteed' by insurance companies, bank RMs and agents - Beware.

'Guaranteed Income plan',
'Guaranteed return plan',
'Guaranteed Insurance Plan'

Psychologically any word or words used after word 'guaranteed', is read with 'trust' and 'assurance' / 'suriety'. (it literally blindfolds the mind to read and evaluate further).

Yes Income may be guaranteed. - pay for 6 yrs . and get XYZ income guranteed from 8th to 20th year, plus a lumsum in 20th year.

Yes Return may be guaranteed - pay 1lac pa. for 15 years and get guaranteed return of Rs 2 lac pa. from 20yr.onwards for life.  (some schemes gurantee return of premiumafter some period)

Yes Insurance us Guaranteed - Isn't insurance company liable to pay on claim? yes, insurance is guaranteed.

But, investors get tricked with such words.

NOTE - #investorawareness

1_ The difference between income (amount) and returns (%) (any sujectivity involved)
2_ always check the taxability of regular return or income (tax free or tax applicable? or subjective)
3_ The Guarantee is mostly about getting 'cashflows' reguarly for specified peried of time
4_ Always check % returns when the amount is guaranteed as cashflows
5_ Be aware enough to remain concious from cashflow usage when you are actually receiving it - is it going to suffice the need (beating inflation) (if your monthly expense is 70000 pm currently and if you would receive 2 lac pa after 20 yrs., mind you it is not even going to last for 10 after 20 yrs.)

Simple is keep insurance and investments separate, unless you are fully aware what you are doing or have some neutral financial expert to guide you to buy it.

I always tell this -

_'be extra cautious' and ask more questions,
_never decide immediately or at last moment, and
_always ask for written brochures and illustrations and once received first look at disclaimers and assumptions (from find tab)
_and last but not least consult a neutral financial expert to evaluate what is on offer,
_PLUS always check suitability of tax applicability or advantage that is been offered. (yes, I have seen agents and bank RMs saying tax saving,but for so many clients they had already crossed their 80c limits)

#keepitsimple #insurance #financialplanning #financialfreedom #financialplanner

Friday, March 25, 2022

What does this Real Estate news mean for you ? Test of Times-360 degree analysis.

Insiders tell me that due to sharp increase in raw material prices, real estate developers and builders are on the verge of slowing down or even stop work for 3 to 6 months, especially this information is in Maharashtra.

What does this mean, if it happens on ground?

A- For investors who have 2nd property and given on rent - be joyous - your rental income could grow faster and for 1 to 2 additional years with consistency.

B- For investors living on rent - Work more and hard - rental outflow will put more pressure on your cash outflow and personal family inflation.

C- For investors who have booked under construction property - you may miss your capital gain , tax advantage window which could result in higher cash outflow and so higher home buy cost then originally calculated. Secondly, we if you have opted for loan, and if builder is of loose and less financially strong, you uave some tough time to tackle their demand notices, which may reach to legale notices.
CA. Anand Lunkar
D- If you are looking to sell your Old property - joy - depending upon demand, very high chances that your old property may get sold faster and at higher rates then assumed.

E- If you are a developer / builder - testing times - ensure you are funded well and keep up with promises - after all tough times, separates trust worthy real estate developers . Plus keep suppliers and buyers well engaged with transparent communication and ears to what their heart is saying. New sales could take a hit, you may have to extend time lines with RERA, and disbursements on laons could become challenge (for your business as well as from home buyers who have booked in your project).If you are well funded, focus on delivery of project in hand, rather then launching new.
Sharad Kumar 
F- If you are a real estate advisor / agent - mixed time - your processes and skills of understanding of clients needs will be tested.
Ashwin Ramchandani  
G- If you are loan provider or advisor - tough times, learn new skill- Regular and non-technical engagement with clients and understand real estate while you are already expert in financial technicalities.
What say ?
Ashish Singodia   
H- If you are financial planner, advisor, wealth manager, portfolio manager - be prepared for un planned withdrawal requests.
Kirtan A Shah    
I- If you are investor in any real estate stock - revisit the books and deep dive the fundamentals of the company.

J- If you are thinking to enter real estate stock- keep your analysis ready and ears near to ground to enter in right stock.
Madhvendra .
This will directly lead to cost push for each of the groups.

NOTE - interest rates are also expected to rise this year.

#realestate #homebuyers #financialplanning #financialplanner

Your views would mean a lot for the industry and consumers - #comment
Bhavin Kothari      
Nirav Saraiya


Thursday, March 24, 2022

What kind of Tax saver Investor you are ?

There are 'tax over concious investors', who see everything from tax angle first, and take decisions based in the same. (example - a friend was talking that he bought a insurance policy last year to save in taxes 7 yrs back,but then realised it was a mistake)

There are investors who are 'least concious of tax', who decide or not do anything from tax angle. (a business person I know, is so busy in deal making that he has paid zero advance tax and zero tax saving for current year and today is 24th March)

Which side you are ?

Let me clarify, this conciousness is not about knowledge but about 'action'.

#comment #tax #financialplanning #financialplanner #investingforbeginners

My Financial planning clients 7 years experience shared by him

Clients CA representative - Sir we see that there is tax liability in 2 family memebers file, but we can help you save tax.
We can offer you good insurance product, or help you open Retirement pension account which will help you during retirement, and also save on tax.

My Client's response - Mail the options with details and brochures and then talk to my Financial planner VIRESH PATEL CFP CM 👪 . Once he understands and approves we can go ahead.

My Client to me - After meeting you I have understood the importance of working with specialised experts for every aspect of money management, and that every aspect should go under your eyes.

You are my one point contact for everything of my personal financial life.

I have understood that a professional is called a professional, not because of the certification,but because of the specialisation they offer doing and applying what they have learned , repeatedly by practicing the same, day in, day out.

Myself to my 7 year client - This is my fees, you earn a discount on your next year renewal Sir.

#financialplanning #financialplanner #financialfreedom #professionals #moneymanagement

Thursday, March 17, 2022

What type of Investor you are ? This defines your returns.

Kind of Investor ? - First be clear - you are a trader or investor, and it is not even crime to define yourself and both, but be clear on this. If both, the set the limits for each and remain on track within set limits.

Jumping between this always ends up being dangerous, more risk and mostly in losses.

#keepitsimple #investingforbeginners #investorawareness #financialfreedom #financialplanning

image credit - 


Saturday, March 12, 2022

Most important skill of financial planner

Biggest Skill of a good financial planner / advisor is ' skill to understand and make clients understand ', and technical skills are given.

Compare this with _ a good cardiologist needs to calm the patient and give confidence to sleep on the operation table, and certifications of MBBS, Cardiology MS,  etc is given.

This generally is either inborn skill or acquired skill over period of time.

Hope this is clear for all aspiring #financialplanners.

Without people skills, technical skills become just unsharpen tools.

If you are interested to join with this background understanding, DM and we can workout for your #financialplanning growth together.

#keepitsimple #financialfreedom #investingforbeginners  

Thursday, March 10, 2022

Should I buy these at Dip ? - ' dip investing strategy '

'Should I buy at dip ?', - one of my friends sent me this 'dip investing' picture and sent some scripts alongwith the same.

'Buy when everyone is fearful and when there is fall from highs' , is right, but please understand we do not buy price, we buy valuable businesses.

Not all company's (scripts) has value to buy even after 90% 'dip'. For example, ' UNITECH ' was at 444+ in 2007 and fell to below 10 in 2008-09, never rose. (currently @2.50)

Not everything that dips is to be bought.Not everything is worth investing even in good times.Proper research is always needed before buy, with right understanding and after detailed suitability test.

For every successful example, there are lot of failure stories, which are to be learnt and understood to be successful. It is good to know about infosys and cici success stories, but would be better to know such unitech stories as well.

#investing #investingforbeginners #personalfinance #financialplanning #financialplanner

Wednesday, March 09, 2022

Is your investing strategy time tested ?

If you as equity trader / investor do not have tried and time tested strategies, your confidence is bound to shake and subjected to question mark.

Forget an investor, even advisors need to have time tested strategies alongwith personal skills to help their clients tide over and come out as clear winner.

This is simple reason why experienced advisors have higher demand.

(not only in personal finance, but even business finance, even medicine, dietician, physical training, yoga,  business coach etc)

#keepitsimple #investingforbeginners #financialplanning #financialplanner #financialfreedom

Credit - the screeshot in picture is taken from today's moneycontrol article.

Saturday, March 05, 2022

CAUTION - How does 20% - 30% down from it's top calls for a 'BUY' ?

You must have surely come accross one if the 'reels' or videos or social media post of stocks available at 20% to 30% correction or fall from it's high or peak or top.

Value is derived from either -

- current price as compared to it's current cash flow and current profits


-current price as compared to futrue cash flow and profit outlook for the future


-combination of both

So for me, if any stock is a 'buy' which passes one or both of these criteria's.

Everything else is immaterial.

Be it 'Zomato', or 'Tata Steel' or 'TCS', 'HUL' , 'ONGC', 'Reliance' or 'L&T' - this is simple criteria.

(ofcourse there are multiple ratios and formulas to arrive at the above criterias and then ones consent on own reports and readings)

30% or 50 % fall from the top may just send an alert under 'have a look' or 'keep a watch' only if it falls under abovesaid criteria.

So do not get enticed by headlines of 20%-40% down from top or peak.

#keepitsimple #investingforbeginners #financialplanning #financialplanner #wealthmanagement  

Thursday, March 03, 2022

Now buy top US listed stocks from India - NSC IFSC starts US stocks today

Why buy from US when you can now buy US stocks from India? Starting today, you can now buy US top 50 (limited to 8 today) stocks from NSE through it's International Exchange (IFSC), by opening you trading account via one of the registered brokers.

(the lsit and trading terminal screenshot in the picture)

Here is list of stocks which will be available to trade and it's ratios (yes, unsponsored depository receipts will be issued) -

(click to check the list and it's ratios)
List of Top US stocks available to trade in NSE IFSC international exchange

To know the list of registered brokers, click here -

List of Registered Brokers on NSE IFSC for US stocks in India

If you are interested in knowing more, comment your queries and I will write a separate detailed one on the same covering your queries.

#usstocks #nse #financialplanning #financialplanner #comment

Wednesday, March 02, 2022

'I am prepared' - Can I say this today if Ukraine-Russia like situation happens in India someday?

How can I sustain, if this happens in India someday? Those who learn and act to change from situations and mistakes always find them in better situations, even in worst and unthoughtful conditions and in good time as well.

Lot of us have received links, pictures ,memes, whats app messages, articles etc like this (attached in pics).

Yes, proud to be indian and yes it calls for concious application to use and/or shift towards #upi and #rupay usage.

The question here is about how to be self - reliant (#atmanirbhar) on keeping liquid money which is usable in every condition and this Ukraine-Russia war has triggered this question.

I believe and hence put this point forward that this calls for a overall look at once investments and asset allocation  and ask oneself - 'can I or how can I sustain ,if this happens in India someday?'

The question is not only about banking and currency and the way to use it, but how liquid and well diversified is my investment?

Majority of Indians investments are into Fixed deposits, Banks, Insurance policy's , government savings instruments, corporate bonds and real estate. (more then 90%). (some other article on how liquid they are)

What is liquidable immediately, although in such situations it may bring some loss, but is it liquidable?

This is not only question about how to use cash or how to apply banking facilities, but more to do with liquidity.

Above all the majority investments, please be aware and ensure that real estate investments are most illiquidable and more then 70% of tax payers have #realestate as major holding in their #networth.

It's not that one should not invest in real estate, just that it is time to conciously question -'Will I be able to sustain, if this happens in India someday?'.

Lot of people may think I am talking something which is not even 1% posibility, some may say I am talking too negative, but think about family.

Liquidity is important aspect while choosing #investing.

After all when the time is good, you should least get disturbed with such question and remain positive and focused and just respond yourself - 'I am prepared'.

What have you done to say yourself 'I am prepared'? 

#financialplanning #financialplanner #financialfreedom #couplesgoals