This article explains how a simple cash flow projection can significantly impact our goal-based financial planning. When I started creating Excel sheets in 2010-11, I slowly realised that all goal-planning must culminate into a cash flow projection. The freefincal robo advisor tool automatically creates a cash flow projection with goal-planning results. If the user chooses…

In this article, we discuss two different questions on asset allocation. Reader (1) says, “I am 25 years old and in a well-paying IT job. After all my expenses, including supporting my family, I can comfortably invest around 100% of my monthly expenses. I am investing it purely in equity to catch up with my…

We recently did a Let’s Get Rich With Pattu podcast episode on buying cars, and one of the questions was, “What should be the budget for my first car?” A discussion. My answer was: Whether you buy with cash or via EMI, ensure the car cost does not exceed your annual income.  Admittedly, I am…

We have repeatedly emphasised the importance of asset allocation and its periodic rebalancing. A two-asset portfolio comprising equity and fixed income will do the job for all goals with minimal effort. However, what if the equity predominantly comprises a direct equity portfolio (stocks)? How can we rebalance such a portfolio? Those who wish to understand…

Having a clear goal can be a key differentiator to managing our finances. A discussion

I have tracked the amount invested in my goal portfolio for over 13 years. It has been a life and game changer for my family. Whether you track your spending or not, tracking your investment amount is crucial. Today, I can invest more for retirement than my target investment. That was not the case when…

My parents had a simple rule: If you cannot pay for it, you cannot afford it. This means avoiding debt at all costs. My father was 40 when he was urged to buy a two-wheeler on EMI. He reluctantly agreed because public transport to his workplace was a nightmare. That was the only item my…

Here are 16 personal finance resolutions and resources to help you start your wealth creation journey. In his 2013 Ted Talk, former Google search quality chief Matt Cutts discussed the power of trying something new for 30 days.  He says if you try something new for 30 days or stop doing something for 30 days,…

We discuss an efficient investment strategy for our financial goals without worrying about market conditions. This simple strategy will help you achieve your financial goals independent of market conditions. We have extensively backtested different variable asset allocation strategies, and the results are available in our goal-based portfolio management course. Be clear about when you need…

I was recently asked to share my thoughts on “How do you increase equity/bond market participation in India?”. I figured the best way to collect my thoughts was to write an article about it. Financial inclusion typically means enhancing the reach and deliverability of financial services to reduce inequality. So, by aiming for enhanced capital…

In this article, SEBI-registered flat fee-only financial advisor Swapnil Kendhe discusses how we can implement a unified portfolio approach for all our long-term goals. About the author: Swapnil is a SEBI Registered Investment Advisor and is one of the sought-after advisors on the freefincal fee-only financial planners’ list. You can learn more about him and his…

A reader asks, “Our daughter is five months old. How should we start investing for her future?” It is always best to start planning on a clean slate before making any investment.  Let’s dive straight into the goal-planning steps. The goal-planning steps We need a target corpus after 17/18 years, depending on when she was…

A reader asks, “Is it possible to use PPF as a source of regular income? For example, withdraw 7 per cent per year”. Once a PPF account has completed 15 years, there are two ways to keep it alive: (1) Without further contributions (interest will be paid) and (2) with contributions (Rs. 500  min per…

A reader says, “For a salaried employee contributing to an employee PF, would it be good advice to invest 50% of take-home pay first into PPF and the remainder into an index fund? This would be an investment towards a retirement corpus. The EPF and PPF would be the fixed-income part of the corpus, and…