How should advisors relook at client portfolios
Source: IRIS (15-JUN-12)
So, once you have met a client, created a financial plan and recommended asset classes and investment products commensurate with his/ her goals, executed the same, is that the end of the story, till his goal has been met? CERTAINLY NOT.
Although, we provide a blue print of clients, finances, assets, liabilities, net worth, cash flows, and life goal needs, these figures are likely to change very often. In fact, every year a financial plan review/goal review should be undertaken to understand the desired recommendations and actual investment performance, and whether both are aligned and need fine tuning.
The Importance of Making Wills
Source: IRIS (15-JUN-12)
Would you like to distribute your financial and non financial assets to the person of your choice or just create trouble among the family members.
Currently, the majority of disputes in the court are due to ambiguity on distribution of assets among heirs and this leads to long drawn legal battles.
In the absence of a Will, your assets would be distributed based on Personal Law, which will determine the distribution of your personal assets, irrespective of your choice. That is called “dying intestate“
Dilshad Financial Planning Standrads Board
Prepayment of home loan on which home? Self occupied or Let out
Source: IRIS (11-JUN-12)
If you are one of those ambitious people who have a loan on self occupied property and a let out property and decide to pre pay from your bonus amount, here`s what can help you decide which property to pre pay and why?
Systematic Withdrawal Option: A tax efficient way of earning retirement inflow benefits
Dilshad Billimoria of Dilzer Consultants shows you how SWP can help your clients to obtain that optimum amount of income in their retirement years without the burden of tax eating into their nest egg.
The benefit of Value Cost Averaging (VCA) over Rupee Cost Averaging(SIP)
Source: IRIS (31-MAY-12)
The basic tenant of investing is buying low and selling high. However, this principal, is often never put to use, because fear, greed are stronger than long term investing discipline.
What is even sadder is the public, normally buys at highs and sells at lows, which grossly undermines returns and the investor, ends up loosing money and not being happy with the investment decision or the financial planner.
The basic tenant of investing systematically through a disciplined and long term savings approach would create wealth in abundance for the investor.
Value Cost Averaging (VCA), is an investment technique similar to Systematic Investing (SIP), where investments are made systematically over a period of time, but the quantum of investment in VCA changes depending on market fluctuation.
This ensures your portfolio value rises by a specified amount at every installment period, regardless of market conditions.
Sounds interesting..? Read on.
11 key attributes that define an effective financial advisor
01 May 2012 08:00 AM
How you can boost your business and develop long-lasting client relationships.
Why financial planning
Source: IRIS (23-APR-12)
Like most people, you have hopes, dreams, and life goals for yourself and your family. These might include buying a home or business, saving for college education for your children, taking a dream vacation, reducing taxes, and retiring comfortably. Financial planning is the process of wisely managing your finances so that you can achieve your dreams and goals- while at the same time helping you negotiate the financial barriers that inevitably arise in every stage of life.
NAV Rs 10 or Rs 100, which one is cheaper
Source: IRIS (23-APR-12)
There is no such thing that is costly or cheap NAV.
I decided to invest in mutual funds. There were two choices before me; Fund A with an NAV of Rs 13 a unit and Fund B with a NAV of Rs 22 a unit.
Was Fund A a better choice because it was cheaper? This is a question which plagues many first- time investors in mutual funds.
Well it is irrelevant how high or low the NAV is. This seems difficult to accept but it is better explained by understanding what is NAV.
NAV stands for Net Asset Value. At the simplest level it is the sum of all assets held by the scheme divided by the number of units. Let`s take an example. When markets plunged to abysmal depths the NAV of this fund was 22. Another Fund B, holds the same stocks, its NAV was much lower at 13.
Planning for Retirement: The how and Why
9 April 2012.
Planning for Retirement: The how, when, how much and why of it
Source: IRIS (09-APR-12)
Very often, we assume, retirement is too far away to bother about how we can sustain a lifestyle similar to our working years.
However, not many realize that retirement as a goal is one of the most important and most difficult to conceptualize, because of its long duration to the start of goal achievement, lack of clarity on interest rates, returns, performance, sustainability and longevity of income required.