5 Financial Vows Couples Should Take This Valentine’s Day

Love is great, it really is. Having someone to share your life, happiness and worries with, but more than often it isn’t all you need to make a relationship work. Stability is a key factor in every relationship and living in the world that we do, money surely matters. A lot of times relationships and marriages fail because the couple could not wrap their heads around their finances. So, this Valentine’s Day instead of only looking at love in a bubble, let’s also look at ways to keep the love going. Continue reading “5 Financial Vows Couples Should Take This Valentine’s Day”

The Do’s And Don’ts To Save You From Identity Theft

The digital age has made life a whole lot convenient, however, it has also created a safety threat  that didn’t exist before. Internet fraud is all too common and it can happen to literally anyone. Yesterday, we recognized ‘Safer Internet Day’, a day which inspires the use of  technology responsibly, respectfully and critically. If you are someone who is constantly making transactions online, either in terms of online banking, investing or even online shopping. Here are a few DO’s and DON’Ts that we have put together for you to follow stat!  Continue reading “The Do’s And Don’ts To Save You From Identity Theft”

Don’t look for shortcuts to create Wealth

Ashish Modani- Founder of SLA Financial Solutions at Kanoria college for a workshop organised by The Economic Times

https://economictimes.indiatimes.com/mf/analysis/dont-look-for-short-cuts-to-create-wealth/articleshow/67652717.cmsHow to maximise returnsAshish Modani, Founder, SLA Financial Solutions, a leading financial advisory firm in Jaipur, remembers the question very well. In fact, he spent most of his time answering the question or various versions of it at the ET Wealth InvestmentWorkshop in Jaipur held on January 18.

“I had dealt with this point in my presentation, but I kept getting more queries about the same from the participants,” says Modani, who conducted a session on Behavioural Management – Why it is of utmost importance in wealth creation.

The queries or different versions of the same question revealed the strategies many participants thought would help them to maximise returns. For example, a participant wanted to know why Modani emphasised on the importance of investing for long term, when one can get out of the market after earning good returns even in the short term. “Why shouldn’t I shift my good profits from my mutual funds to bank FDs,” she asked Modani.

Modani explained to the participant that how she is stopping her money from growing by taking the money out. “Pulling out money when the markets are down or pulling out money when you earn a little return – both destroy the growth of your money,” Modani said.

Another participant said she chose NPS over mutual funds because NPS was cheaper. Since costs of NPS were considerably lower than mutual fund schemes, she thought NPS would help her maximise profit, the participant said. “Then why is NPS not giving better returns than mutual funds,” asked Modani, before proceeding to explain the basics of investment choices.

Modani explained to the participants at the workshop that their goals should dictate where they should invest. “If I am saving for my child’s education, the asset class will be different if that kid is six years old or when she is 16 years old. You are here to chase your goals, returns facilitate that. If you chase returns, your goals will go for a toss,” explained Modani.

Ashish Modani also told the participants at the workshop that often investors earn less returns than the returns made by a scheme because of their lack of discipline or because of their fear of losing returns over a period. He cited the example of Fidelity Magellon Fund. The scheme made a return of 29 per cent, but the average return made by investors were around 7 per cent during the same period.

“Instead of looking at past performance of investment if investor were to look at the past performance of the investors and do not make those mistakes, they will be benefited,” said Modani. “The most successful investors are either dead or have forgotten about their investments,” he added.

Okay, that all sounds great, but please suggest the best scheme for my long-term goal, a participant asked Modani. Modani said many investors are always looking for sure-shot way to make wealth, but there is no short cut to create wealth. “When Sachin Tendulkar made his record, nobody said that it was because of his bat. Similarly, an investor’s behaviour and discipline towards his investment make him rich,” said Modani. He reiterated that the key to wealth creation is: “start saving, stay simple, don’t complicate your investments, think long-term, be regular with your investment no matter what happens in the market and stay focused on your goal.”

 

Tax Planning: What NOT to do!

The biggest goal of planning your taxes beforehand is to pay less income tax. But what we fail to foresee is that by planning our taxes smartly, we not only save a ton of money but we also get a chance to boost our overall financial portfolio. When it comes to strategizing your tax planning, one size does NOT fit all. Tax planning involves analyzing your current financial situation from the point of view of your taxes. This helps you in optimizing your finances and make the most of the various tax exemptions and deductions available. Continue reading “Tax Planning: What NOT to do!”

Teach Kids the Value of Money; Learn to say NO now!

Every parent hopes to be their kid’s superhero, to be perfect for them at all costs. However, more than often a parent’s idea of perfection costs them a lot monetarily and raises kids who don’t value money enough, or rather judge everyone and everything based on money. Buying whatever your children want is never a good idea. Learning to say ‘no’ on the other hand is. Here are some tips on how to master the art of saying NO. Continue reading “Teach Kids the Value of Money; Learn to say NO now!”