‘Passive’ income requires ‘active’ involvement!

After reading well-spun yarn like ‘Rich Dad, Poor Dad’, many start talking about the importance of financial independence and passive income. There is no free lunch in the universe and there is no such thing called ‘passive’ income. A look at some well-known passive income ‘streams’ and what it takes to make them count.

Income from rental property

If you are earning rental income from ancestral property which you naturally inherited (without litigation etc.) then it is sheer luck. It is perhaps passive, but it unplanned. So does not count.

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How do I reduce clutter in my mutual fund portfolio?

A look at “How do I reduce clutter in my mutual fund portfolio so that it can tracked and reviewed easily?”. Typically mutual fund investors with few to several years of experience are interested in this exercise.

The first step is to recognise clutter. I hold 8 funds. If I posted just that information at AIFW and ask, ‘is it too many?’, there would at least be a few answers which go, ‘yes’. Someone might even offer me advice on the ideal number of funds a folio should have.

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DIY Investor Workshop at Bangalore -Aug 23rd 2015

Ashal Jauhari and I will conduct a workshop on DIY investing at Bangalore on Aug 23rd 2015.  The workshop will cover the basic elements of DIY money management.

Ashal Jauhari is the owner of Facebook group Asan Ideas of Wealth. If you wish to know more about him, you can check out the Interview with Ashal Jauhari: Relentless Financial Awareness Activist

I will cover,

  • basics of goal-based investing with Excel-based illustrations,
  • simple ways to understand volatility, and
  • how to choose and review mutual funds.

After registration, participants will be directed to a Google forms page. Here you can list generic questions or topics that you would like Ashal to speak about/discuss.

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How much do I need to retire early in India?

A look at ‘how much’ or ‘what is the corpus required for early retirement in India?’.  I had earlier written a detailed post on this subject and the common misconceptions youngsters seeking financial freedom form after reading blogs like ERE and MMM.

The central message of that post was, early retirement is possible, but one must have a comfortable corpus taking into account the high inflation levels in India.  Unfortunately, many people misunderstood it and assumed that I meant early retirement is not possible. Either before or after reading this post, I strongly suggest you read that one as well: Is it possible to retire early in India?

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Nuggets from the workshop on “strategic personal finance”

The investor workshop on “strategic personal finance” was held on July 26th 2015 at Bangalore.  Dr. Uma Shashikant, Managing director, Centre for Investment Education and Learning (ciel.co.in and moneykraft.com)  spoke on various aspects like

  1. Taking charge of assets and funds.
  2. Evaluating the impact of personal finance decisions
  3. Maximising net worth – steps to financial freedom
  4. Building a robust and diversified portfolio
  5. An approach direct equity investing.

I was honored to share the stage with her and spoke about mutual fund investing. It has been nearly two decades since I took notes in a classroom. I spent a good part of the day doing that and here are some nuggets from her talk.

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