Financial Planning for Defence Personnel

Kitna Mileage deti hai- Financial Planning, humfauji.in

Kitna Mileage deti hai?

Sir, I’ve told him that he has a 80% Debt and 20% Equity portfolio where safety has been given more importance as this is his retirement corpus, but he insists that he won’t accept anything less than 15% annualized returns since the markets are now booming!” -I could make out my hapless young financial planner was at her wits end. “Sanjeev, what is this yaar? My overall portfolio returns are 25% CAGR (Compounded Annualized Growth Rate) but this one stupid fund is stuck at 17% and my planner is just doing nothing about it!”, ranted one of our aggressive customer. One of our bigger investor has moved almost 50% of his life’s savings to a well-known Portfolio Management Service (PMS) because his initial ‘test-drive’with their 100% equity portfolio produced great results in these rising markets. We routinely get calls from prospective clients who ‘haggle’ with us on ‘returns’ – if ...
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Strategies for Managing a Fast Growing Company-humfauji.in

Strategies for Managing a Fast Growing Company

Satya Nadella, CEO of Microsoft once said that, “Longevity in the business is about being able to reinvent yourself or invent the future.”If you've been part of a start-up that has experienced rapid growth, then you'll understand how important it is to constantly improvise and build systems that measure qualitative factors such as customer satisfaction, day-to-day market learning and incorporating innovation.Of course, that sounds much easier said than done but it needs a lot of time, energy and effort from the Core team to bring change, embrace growth and scale up. Also, you will find yourself juggling between organizational and managerial changes while keeping up with an increase in sales. Regardless of how beneficial or detrimental acceleration there has been, you have to sustain these challenging changes and you have to grow along. But, how do you do it? Here are some tips on how to manage a fast growing ...
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Decomplicate your life

Decomplicate your life

There's too much of financial 'wisdom' being branded about. Too many words telling you too less. Don't get overwhelmed with it - here's the gist of it. Financial planning is simple. One sincere Sunday sitting with your wife and you can pretty much simplify and sort a lot of your financial issues. Generally you can't help or control how much you earn. However what you do with the money after it is earned, is fully in your control. Most of us worry more about what they have no control on, and neglect what they have full control on, in financial matters. You're paying a lot of tax on your salary. Agreed. But there's nothing much you can do about it. Stop worrying about it, therefore. There's a lot of tax you can save on the investments that you do after you get your salary. Worry about that. It is in ...
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Add health to Wealth

Add health to Wealth

Dear Friends, Resolutions are traditionally made at the beginning of a calendar year. Can you make resolutions to improve your financial health in the year? The article series started in Financial Express from today onwards deals with this subject. It kicks off with my views on how to add health to your wealth NOW. The article can also be accessed at the link http://www.financialexpress.com/article/personal-finance/why-epf-sip-and-will-should-be-part-of-your-financial-planning/243077/ Why EPF, SIP and WILL should be part of your financial planning  Besides planning for financial health, one should assess the whole year's expenses and the various money taps through which they can be met. Financial year 2016-17 is well and truly in. Among the many things you look forward to, is to improve your financial health. The annual salary increments would be round the corner. But along with that, there would be several expenses lined up, including home loan EMIs, insurance premium payments and education expenses ...
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Failing to Plan is Planning to Fail

Failing to Plan is Planning to Fail

To say that we should plan our finances well is just to state the obvious. However, in spite of this knowledge, most of us do not put in the small amount of effort required to plan for the financial future of self and our families – how many people do you know who have bought a house without a home loan or sent their children for expensive studies without education loan by simply saving in advance? We would plan a weekend recreational trip much more than most of our major financial events of life. Probably it is the anticipated drudgery of planning or the fear of confronting requirement of large financial sums that make us postpone any sort of long-term planning, till it is right in front of us and can no longer be postponed. However, if we put in just a little bit of effort on a couple of ...
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You Can Do It – Take Care

You Can Do It – Take Care

As a financial planning company dealing primarily with armed forces offices and their relatives, we often come across officers’ wives who have lost their brave husbands in battle and conflict zones, or otherwise. The ladiesare at a severe loss on how to pick up the threads of life, after having overcome the initial shock and trying to come to terms with realities of life especially with regard to their children. While there is an excellent support structure – emotional and physical – available in the services, there is a serious dearth of informed financial advice available to them. Most of the financial advice that comes to them is given either by people who are themselves not clear about the best choices for them or by those who have some ulterior motives. Peculiarities of most of such affected families and ladies are:- There is large amount of money that suddenly becomes ...
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Financial planning for people in their 70s and 80s-humfauji.in

Financial planning for people in their 70s and 80s

Financial Planning in the 70s and 80s is much more than merely managing your money, though money supply does remain a major requirement for most of the Indians. Issues like estate planning, withdrawal strategy from the accumulated corpus, medical management, getting the asset allocation right and catering for emergencies may become more important now than in any other stage of life. Also, anticipating future income and lifestyle needs is essential to make these years truly the golden years of one’s life. In fact, these later retirement years can pose sophisticated challenges to retirement planning and saving. As per the Census of India organisation, current life expectancy of an average Indian is approximately 70 years at birth which, by the age of 60 years, increases to 80 years and by 70 years of age, it is 82 years. This data is for an average Indian. For an urban and more health-conscious ...
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Overcome your financial fears-humfauji.in

Overcome your financial fears

Secret #10 Making Friends With Your Financial Fears - By Mark Ford “I've wanted to buy rental real estate since graduating from high school more than 13 years ago, but fear has prevented me from doing it all of these years. And at times I've wanted to start a business, too, but fear got in the way. Do you have ideas on how I can overcome my fears?” Years ago, when gold was trading at around $500 per ounce (ie. around Rs 30,000 per 28 grams), fear was the reason why so many of my friends and colleagues were afraid to invest in gold despite my urging them to do so. It is the reason that many readers are ignoring my advice to buy real estate now. It's important to remember that the major media are almost always wrong about investing. When prices skyrocket, they write stories about people making ...
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Importance of Asset Allocation-humfauji.in

Importance of Asset Allocation

If you are an avid reader of our articles, you may have realized that we often emphasize on maintaining proper asset allocation. You see, building an investment portfolio through optimal asset allocation is imperative while you endeavour to achieve your financial goals.. So in this article we thought of explaining you in detail about asset allocation citing the benefits it offers to you as investors. What is Asset Allocation? As the name implies, asset allocation refers to distributing your investible money across asset classes such as equity, debt, gold, real estate or even holding cash for that matter. So by allocating assets, you are essentially adopting an investment strategy which can balance your portfolio’s risk and reward keeping in mind your risk profile, your financial goals, and your investment time horizon. The below chart shows you an example of optimal asset allocation:- What are the benefits of proper Asset Allocation? ...
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Are you still investing in Bank FDs-humfauji.in

Are you still investing in Bank FDs?

If you are like most Indian investors, you would have a large part of your money invested in bank FDs. This is due to the Indian penchant for investing in safe instruments with high liquidity even at the cost of high taxation. In fact, I have often come across a large number of investors who do not need money for a long time but still prefer to invest in short term bank FDs of a year or so, to be auto-renewed each year. In the current era of falling interest rates, this translates into them renewing their FDs every year at constantly falling rates, rather than locking in their deposits for a long term at high interest rates. However, if you are a smart investor, you should seriously consider replacing most (or even all) your bank FDs with Fixed Maturity Plans (FMPs) of mutual funds. What are FMPs? FMPs are ...
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