Wealth book for the 20s and 30s
So here is what is the consensus / vast majority view on the contents of the Wealth Book for the youth. By definition of youth I mean the real young earners (but not those looking for student loans), setting up a family, and the early retirement thinkers. Thanks for all the emails, phone calls, FB messages, postings, ….i think I got about 100 responses, if not more..
Any major gap will be filled in…but here it is:
Philosophy of Creating Wealth (oops OMG I need to really write this well)
Road from Rich to being Wealthy
The Wealthy do not Retire
Taking Stock: Where do you stand now (Balance sheet)
Goals: setting, present value, steps to achieve them (where you want to go)
Figuring where your money comes from (easy) and where it goes (tough!) (Profit and Loss account)
Budget (also called a Reality check on the Goals)
Debt – credit cards, student loans, how to acquire the big assets, credit reports and scores
Introduction to banking (it pays to work in a bank, and hey do not be scared of it)
Introduction to Investing (Mutual funds)
Risk – and how to cover it
Stay away from Toxic products please!
Other investing / saving products
Retirement: how if you did all the above things right, you should not need this chapter!
Ramesh
Will Asset Allocation be included in there, somewhere.
Otherwise, the rest of the topics do appear to be comprehensive enough. 🙂
vignes
Hi subra
Looking forward to that!!
Exhaustively covered!!! super:) I should be lucky to get tht!
Sanjay
Happy to see following topic
Stay away from Toxic products please!
Interested to see whether 2nd home for investment counts as toxic product. After all, it is illiquid investment and big ticket investment at the same time.
shiva
Please consider Risk of Inflation, Real returns after tax and inflation, Time value of money, Conflict of Interest, Compounded annual growth rate, Why it is difficult to create real wealth through trading for most people, Index investing, Common fallacies of debt instruments (FD,Bonds), Real cost of Loans and EMIs, Need for calculating everything mathematically and why hunches and simplistic views are wrong, Document keeping, Will and Nominees, Long term risk (eg Govt can change rules after the game has started), Black swan events (how all our assumptions can go wrong and how to deal), Need for diversification, How to prevent Fraud (trust but verify), Fallacies and realities of real estate “investing”.
karthik
Dear Sir,
A Chapter providing instructions on stock picking using fundamentals (of course for long term investing!!) would be very useful.I would request you to consider the following points to be covered in this section:
a. Basics of Individual stock selection
b. Ideal Allocation of stocks to build a solid portfolio (Blue chips ,Mid cap,small cap)
c. Key indicators for filtering potential stocks
d. Selection of stocks – Methodology
e. Monitoring the portfolio
f. Hedging using Call & Put Options
f. Indicators for a sell
This would really be helpful as there is no book that I have been able to identify which provides these details in the indian context.This will help people like me (non-finance background)to eventually move from investing in mutual funds to direct stocks and optimize returns.
Looking forward to your book
Thanks again for your wonderful blog.
aditya
Subra: an important topic for the as per me/
financial Compatibility with partners/ choice of partner for marriage to become wealthy or remain wealthy
Nissar
How to join in your email list for updated news and mails
Nissar Ahmed
anmol
subra sir
add the topic of financial counselling and planning before marriage , pre nups .. talking to your partner about your future financial plans , etc