In an earlier posting we saw that Goals should be SMART. T stands for tracking. If you have goals it is necessary for you to track whether you are on the correct path. If you were climbing a mountain and following a map, you would look for landmarks to ensure that you are on the […]
Many of my posts are based on the Financial Planning / Mutual fund training class that I do. One question that normally people ask me about where to keep their emergency funds. I do give a variety of answers, but here is what I have done: A friend who is an investment adviser has a […]
In a country like USA where there is a decent press, democracy and a vigilant SEC, the financial fraud culprits are brought to book quite slowly, if at all. What will happen to Indian customers who have been had? How does one react to the CEO of a foreign bank saying “we will make up […]
It is customary for life insurance salesmen (by whatever name called) to sell life insurance by showing what is called an “illustration”. What is wrong with this “illustration” that is shown to potential customers? Simple, it does not mean a thing! IRDA has stipulated that the illustration should be made with 2 projected returns: 6% […]
Ego and pride are not really useful elements while investing. Many investors I know have made money because of luck. And many others have made money because about say 30 years back (or say 50 years back) it was not very fashionable to “trade” equity. So when an electrode supplier liked the way L&T or […]
Investing is a lot about luck – any investor will tell you that. I have said this in an earlier post also. For example I sold hdfc, l&t, and tata power (skill, I thought they were overpriced in a slowing down market) – they are still way below my sale price. Then I used some […]
Warren Buffett has some advice for young people, like college students, who want to remain financially independent. It’s not new and its not a surprise, but it is solid counsel on avoiding a very common money pitfall, and worth repeating: “The biggest suggestion I have is to avoid credit cards. Interest rates are very high […]