Recently i was reading an article on Life's 15 most stressful events. Quite surprisingly "Divorce" was at no 2 in the list after "Death of a Spouse". Almost 10% queries posted on my blog are related to financial implications of a Divorce. I will not term it as financial implications/mistakes rather these are financial blunders. Divorce is a personal matter between the couple. Based on my interaction i can conclude that emotions like revenge, anger, and resentment take over financial wisdom. The financial implications of a divorce take a backseat. As a result, both husband and wife incur a ... Read More
Equity Exposure – Beware of 5 illogical Reasons to Invest
Are you taking Equity Exposure just for the sake of it? It's like eating food when you are not hungry. It will be right to say eating stale food (Bear Phase) instead of healthy food (Bull Phase). You may find expert suggestions to exit other asset classes but will never find a call to reduce Equity Exposure to NIL. As a retail investor, i took a call to quit Equity Investments. The key reason is that even if all the investors EXIT Gold, the gold prices will not be impacted much or collapse below the floor price. According to experts, the gold prices will not fall below the cost of production ... Read More
Asset Allocation – What to do now?
Asset Allocation is the biggest headache for any investor. The financial planners suggest a model asset allocation. There is a famous saying that one size does not fit all. The concept of model asset allocation is vague and farce. It does not take into account all the factors that influence investment risk. A bad mix of asset allocation may destroy your wealth at a faster rate. An asset allocation mix of the investors of the same age and income level can be entirely different. In past, i have observed extreme portfolio allocations. The risk-free investors are heavily invested in traditional ... Read More
Loan – Check its impact on CIBIL Score
A Loan is another name of consumerism. An easy finance or loan is both good and bad for the economy. Recently, you must have read news articles on the Gross NPA's of the banks. Though no one is willing to state the obvious, that it is a direct fall out of easy loans in past. The declining interest rates are good for an economy but to maintain the quality of a mortgage is a big challenge. It is another threat to the economy. It is called Easy Money. Though we can say that without consumption, the economy cannot grow and I do agree. But in this whole debate we miss a very crucial point that it's ... Read More
Avoid Property Investment through Home Loan
Property Investment is a big craze in India among all asset classes. One of the factors which boost Property Investment is income tax deductions on Home Loan. It is one of the reasons for very high property prices in India. In my opinion, Home Loan Tax deductions are more of a subsidy. If you are buying a property for self-occupation, then you should buy without giving 2nd thought. It makes perfect logical and financial sense. In this post, we will discuss the scenario wherein buyer purchase property for PURE investment purpose, i.e., the property is let out. Few years back, Property ... Read More
How To Destroy Your Wealth?
Wealth is an abundance of valuable Assets, Possessions or Money. To become rich, you have to build a wealth at a rate higher than the rate of depletion. The risk reward of building a wealth is equally balanced. Higher the probability of wealth creation more is the risk of losing it. As an investor, you have to adopt the method to build a wealth in which risk reward is more favorable for investors. For example, currently any investment in Real Estate is not favorable to build a Wealth. Investors who bought property in 2013 or 2014 are in loss. The loss will increase manifold if we consider the ... Read More